The Trump family joins forces with Hut 8 and American Bitcoin to aim for the creation of the world's largest Bitcoin mining company

Author: Weilin, PANews

On March 31, what seemed like an ordinary official announcement of a mining company restructuring was brewing the latest evolution of the Bitcoin mining landscape in North America.

North American mining giant Hut 8 announced a partnership with Eric Trump, the second son of Donald Trump, to establish a new company, American Bitcoin, aiming to become the largest and most efficient Bitcoin mining enterprise in the world. This not only represents a strategic transformation of Hut 8's business structure but also marks another intersection of capital, the Trump family's influence, and the crypto world.

In a subsequent conference call, the new company American Bitcoin proposed a four-phase development roadmap, planning to achieve a total computing power of over 50 EH/s, with overall energy efficiency below 15 J/TH, and ultimately complete its public listing.

Restructuring: Hut 8's Bitcoin Mining Business "Spins Off to Restart"

The core of this transaction is Hut 8's significant restructuring of its mining business. As a company that started with mining, Hut 8 has chosen to transfer all of its self-operated mining assets (including ASIC miners with computing power exceeding 10 EH/s) to its subsidiary American Data Centers, which has been renamed American Bitcoin. At the same time, Hut 8 retains an 80% stake in the new company, while Eric Trump, Donald Trump Jr., and other original shareholders of American Data Centers hold 20% of the shares.

It is noteworthy that American Bitcoin will operate as an independent mining company in the future, planning to expand its computing power through the capital markets and generate profits from the rising Bitcoin prices. Hut 8 itself will transform into a "digital infrastructure" company, focusing on power, data center hosting, and operational management services. Its revenue will no longer rely on Bitcoin output but will come from stable fiat income—electricity and hosting service fees.

In terms of leadership structure, Eric Trump will serve as the Chief Strategy Officer of American Bitcoin, responsible for driving and defining the company's long-term strategic direction. His responsibilities encompass capital raising, company development, and market engagement. Eric will establish strategic partnerships in finance and operations to align growth trajectories with the ever-changing market and capital dynamics.

Other executives include Executive Chairman Mike Ho (Hut 8 Chief Strategy Officer), board member Asher Genoot (CEO of Hut 8), CEO Matt Prusak, and two board members Justin Mateen (co-founder of Tinder) and Michael Broukhim (co-founder of e-commerce startup FabFitFun).

Expanding through Capital Markets, Vowing to Build the Best Bitcoin Mining Company

Officials stated that private financing will occur before the public listing, firmly believing that the company has the capability to sustain financing through private and public markets. The core logic of this transaction has been long in the making, only coming to fruition upon meeting Eric's team—Hut 8 will become a provider of stable cash flow through power infrastructure and hosting services, while American Bitcoin will carry the profit opportunities brought by Bitcoin's volatility.

As the Chief Strategy Officer of American Bitcoin, Eric Trump's speech at the launch event was quite personal and revealed the value motivations behind this cross-industry collaboration.

"I have spent my life dealing with tangible assets—we built the best hotels, golf courses, real estate projects, commercial and residential buildings," Eric recalled. "It wasn't until I immersed myself in the crazy world of politics that I truly realized the power of cryptocurrency, and I developed a genuine understanding and love for cryptocurrency, especially Bitcoin. I saw banks arbitrarily shutting down personal accounts, witnessing the weaponization of the financial system, where someone who had been with a bank for 20 years had to wait six months to get a basic mortgage—none of this makes sense."

In his view, Bitcoin is a form of "digital gold" that is available around the clock, global, and instantaneously liquid, which does not conflict with tangible assets like real estate and golf courses but rather complements them. He emphasized that through American Bitcoin, he hopes to "bridge the gap between traditional finance and digital finance," achieving this goal by building the largest and best Bitcoin mining company in the world.

In terms of hardware supply, executives revealed that Bit Micro has established a factory in the U.S. to produce ASIC miners, and Bitmain is also following suit. Through decentralized procurement and localized production, American Bitcoin aims to create a globally resilient hardware layout. The advantage of the contract with Bitmain lies in the flexibility to choose between full or partial purchases of mining machines. As sites go into production, the procurement pace will be dynamically adjusted based on computing power prices and machine costs.

American Bitcoin stated that it maintains cooperation with leading manufacturers such as Bitmain and Bit Micro, while also having a research and development center in Southeast Asia to test equipment from various manufacturers. Currently, Bit Micro has established a factory in the U.S., and Bitmain is also following suit. It is engaging in supply chain security dialogues with all suppliers to reduce risks through diversified cooperation.

Cooperation Details: Four Phases and Three Key Agreements

The development path of American Bitcoin has been meticulously broken down into four phases, each with clear target computing power and energy efficiency metrics, relying on synergies with Hut 8's existing resources:

Phase One: American Bitcoin will take over 10 EH/s of mining machines transferred from Hut 8 (with an average efficiency of about 21.2 J/TH). This computing power will serve as the cornerstone for the company's expansion.

Phase Two: Hut 8 plans to activate a super-large site, executing a signed procurement option to deploy 15 EH/s of U3S21EXPH equipment at that site, which will be sold to American Bitcoin. These devices will operate on Hut 8's self-developed liquid cooling architecture, raising the total computing power to approximately 25 EH/s, with efficiency dropping to about 16.3 J/TH.

Phase Three: American Bitcoin will further acquire and activate another site that has already secured exclusivity in Hut 8's pipeline, deploying an additional 10+ EH/s of U3S21EXPH miners, bringing total computing power to 35+ EH/s, with efficiency dropping below 16 J/TH.

Phase Four: This model will be replicated at another site with exclusivity, adding 15+ EH/s of Bitmain's U3S21EXPH miners to achieve the final goal: 50+ EH/s, with overall efficiency below 15 J/TH. Officials stated that American Bitcoin's preliminary roadmap demonstrates a replicable, capital-efficient growth strategy, with clear investments, orderly execution, and each deployment cycle yielding compounding learning and optimization.

To ensure operational synergy and cost advantages, Hut 8 and American Bitcoin have signed three key agreements:

1. Colocation Agreement

The Colocation Agreement grants Hut 8 exclusive rights to host American Bitcoin's ASIC miners at its site. This agreement will bring continuous fiat income to Hut 8's "digital infrastructure" segment while allowing American Bitcoin to access high-density, cost-effective infrastructure without capital expenditure.

2. Managed Services Agreement

Under the agreement, Hut 8 will operate all mining operations of American Bitcoin at the hosting site. This provides a second continuous fiat income stream for Hut 8's "power" segment while enabling American Bitcoin to leverage Hut 8's mature mining operation platform.

3. Shared Services Agreement

Hut 8 will manage the core business functions of American Bitcoin, including finance, human resources, and compliance matters. This agreement aims to reduce the burden of building a management team for American Bitcoin, allowing it to expand with a streamlined and efficient cost structure.

The combination of these three agreements enables American Bitcoin to achieve a cost structure similar to vertically integrated miners while avoiding the asset burden of building its own infrastructure and management team. Therefore, nearly all of American Bitcoin's capital can be used to enhance computing power and accumulate Bitcoin.