The Trump family enters the mining sector, jointly establishing American Bitcoin, aiming to go public and become the largest Bitcoin mining company in the world.

Author: Weilin, PANews

On March 31, what seemed like an ordinary official announcement of a mining company restructuring is 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 called American Bitcoin, aiming to become the largest and most efficient Bitcoin mining enterprise globally. This not only represents a strategic transformation of Hut 8's business structure but also signifies another intersection of capital, the Trump family's influence, and the crypto world.

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

Restructuring: Hut 8 Bitcoin mining business "spins off and starts anew"

The core of this transaction is Hut 8's important restructuring of its mining business. As a company that started with mining, Hut 8 has chosen to transfer all self-operated mining machine assets (including ASIC miners with a 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% controlling stake in the new company, while Trump's two sons, Eric Trump and Donald Trump Jr., along with other original shareholders of American Data Centers, hold a 20% stake.

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

In terms of leadership structure, Donald Trump's second son, 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 duties encompass capital raising, corporate development, and market connection. Eric will establish strategic partnerships in the financial and operational sectors to align the growth trajectory with the ever-changing market and capital dynamics.

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

Expand through the capital market, vowing to create the best Bitcoin mining company**

The official stated that private fundraising will be conducted before the listing, firmly believing that the company has the capability to continue financing through private and public markets. The core logic of this transaction has been brewing for a long time, and it only truly materialized upon meeting the Eric team—Hut8 will become a power infrastructure and hosting service provider with stable cash flow, while the American Bitcoin company will carry the profit opportunities brought by Bitcoin volatility.

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

"I have spent my life dealing with physical assets—we have 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 true understanding and love for cryptocurrency, especially Bitcoin. I saw banks arbitrarily shutting down personal accounts, witnessed the weaponization of the financial system, and saw someone who had worked with a bank for 20 years having to wait 6 months to get the most 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 instantly liquid, which is not in conflict with physical assets like real estate and golf courses; rather, it complements them. He emphasized that through American Bitcoin, he hopes to "bridge the gap between traditional finance and digital finance" by creating the largest and best Bitcoin mining company in the world to achieve this goal.

In terms of hardware supply, according to executives, Bit Micro has established a factory in the U.S. to produce ASIC mining machines, and Bitmain is also following suit. Through decentralized procurement and localized production, American Bitcoin aims to create a global hardware layout with risk resistance capabilities. The advantage of the contract with Bitmain lies in the flexibility to choose between full payment or batch purchases of mining machines. As sites begin production, the procurement pace will be dynamically adjusted based on hash rate prices and machine costs.

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

Cooperation Details: Four Phases and Three Key Agreements

The development path of American Bitcoin is meticulously divided into four stages, each with clear target computing power and energy efficiency indicators, relying on collaboration with Hut 8's existing resources:

! The Trump family entered the mining circle and established American Bitcoin, a joint venture to become the world's largest bitcoin mining company

Phase One, American Bitcoin takes over 10 EH/s mining machines transferred from Hut 8 (with an average efficiency of about 21.2 J/TH). This part of the computing power becomes the cornerstone of the company's expansion.

Phase Two, Hut 8 plans to activate an ultra-large site to execute a signed procurement option, deploying 15 EH/s of U3S21EXPH equipment at the site and selling these ASICs to American Bitcoin. These devices operate on Hut 8's self-developed liquid cooling architecture, which will increase the total computing power to approximately 25 EH/s, with efficiency reduced to about 16.3 J/TH.

Phase Three, American Bitcoin will further acquire and activate another site that has obtained exclusive rights in the Hut 8 pipeline, and deploy additional 10+ EH/s U3S21EXPH miners, bringing the 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 exclusive rights, adding 15+ EH/s of Bitmain U3S21EXPH miners to achieve the final goal: 50+ EH/s, with an overall efficiency of less than 15 J/TH. The official statement indicates that the preliminary roadmap of American Bitcoin showcases a replicable and capital-efficient growth strategy, with clear input, orderly execution, and each deployment round contributing to compound learning and optimization.

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

1. Colocation Agreement

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

2. Managed Services Agreement

According to the agreement, Hut 8 will operate all mining operations of American Bitcoin at the hosted site. This brings a second continuous fiat revenue stream to Hut 8's "power" sector, while allowing 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. The agreement aims to reduce the burden on American Bitcoin's self-built management team, allowing it to expand with a streamlined and efficient cost structure.

After the merger of the three agreements, American Bitcoin is able to achieve a cost structure similar to that of vertically integrated miners, while avoiding the asset burden brought by self-built infrastructure and management teams. Therefore, nearly all of American Bitcoin's capital can be used to enhance computing power and accumulate Bitcoin.