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

On March 31, what appeared to be an ordinary official announcement about 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 in the world. This is not only a strategic transformation of Hut 8's business structure but also marks another intersection of capital, the influence of the Trump family, 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 an overall energy efficiency of less than 15 J/TH, and ultimately complete an IPO.

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

The core of this transaction is the important restructuring of Hut 8's 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 a computing power of over 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 Donald 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 computing power through the capital markets and generate profits from the rise of Bitcoin. Hut 8 itself will transform into a "digital infrastructure" company, focusing on power, data center hosting, and operation 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 the leadership structure, Eric Trump, the second son of 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 include capital raising, corporate development, and market alignment. Eric will establish strategic partnerships in finance and operations to ensure the growth trajectory aligns 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, and two Board Members Justin Mateen (Co-founder of Tinder) and Michael Broukhim (Co-founder of e-commerce startup FabFitFun).

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

The official stated that private financing will be conducted before the listing, firmly believing that the company has the ability to continue financing through private and public markets. The core logic of this transaction has been brewing for a long time, and it was only when meeting the Eric team that it truly landed—Hut8 will become a power infrastructure and custody 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 motivations behind this cross-industry collaboration.

"I have spent my life dealing with physical 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 it was then that I really understood and fell in love with cryptocurrency, especially Bitcoin. I saw banks arbitrarily freeze personal accounts, witnessed the weaponization of the financial system, and there were people who had worked with banks for 20 years, yet had to wait 6 months just to obtain the most basic mortgage, and none of this made 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 physical assets such as 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" by creating the largest and most excellent Bitcoin mining company in the world to achieve this goal.

In terms of hardware supply, according to executives, Bitmicro has set up a factory in the United States to produce ASIC miners, and Bitmain is also following suit. Through decentralized procurement and localized production, American Bitcoin hopes to create a global hardware layout with risk resistance capabilities. The contract advantage with Bitmain lies in the flexible choice between full or partial purchases of mining machines. As sites go into 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 also 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 Stages 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 synergy with Hut 8's existing resources:

Phase One, American Bitcoin takes over the 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 a super-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 about 25 EH/s, with efficiency dropping to around 16.3 J/TH.

Phase Three, American Bitcoin will further acquire and activate another site that has obtained exclusivity in the Hut 8 pipeline, and deploy an additional 10+ EH/s U3S21EXPH mining machines, 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 that already has exclusive rights, adding 15+ EH/s of Bitmain U3S21EXPH mining machines 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 demonstrates a replicable, capital-efficient growth strategy, with clear investment, orderly execution, and each deployment cycle bringing compounded 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 hosting site. This brings a second continuous fiat revenue stream to Hut 8's "power" segment while allowing American Bitcoin to leverage Hut 8's established mining operation platform.

3. Shared Services Agreement

Hut 8 will manage the core business functions of American Bitcoin, including finance, human resources, and compliance. 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 vertically integrated miners, while avoiding the asset burdens brought by self-built infrastructure and management teams. Therefore, almost all of American Bitcoin's capital can be used to enhance computing power and accumulate Bitcoin.