Hut 8 Transfers ASIC Miners to Launch American Bitcoin with Trump Family Backing
Hut 8 Corp. has launched American Bitcoin Corp, a majority-owned subsidiary designed to focus on industrial-scale Bitcoin mining and reserve development. This move follows the crypto mining companys strategic decision to contribute nearly all of its ASIC miners to American Data Centers, Inc. in return for a majority stake in the company.
The company, initially backed by investors like Eric Trump and Donald Trump Jr., was later rebranded as American Bitcoin after the transaction.
American Bitcoin Corp
According to an official press release, all Bitcoin mining operations once categorized under Hut 8s Compute segment will now be handled under the American Bitcoin brand but remain within the same segment. Initially, American Bitcoins results will be consolidated into the crypto mining companys financial reports.
Hut 8 will become American Bitcoins exclusive infrastructure and operations partner and will aim to generate steady revenue through long-term contracts in Hut 8s Power and Digital Infrastructure sectors. Meanwhile, American Bitcoin plans to become the largest and most efficient Bitcoin miner globally while also focusing on creating a strategic Bitcoin reserve.
Commenting on the development, Eric Trump, Co-founder of American Bitcoin, said,
It is a great honor to partner with Hut 8, a recognized leader in the Bitcoin space, as we launch American Bitcoin. By combining Hut 8s proven operational excellence in data centers with our shared passion for Bitcoin and decentralized finance, we are poised to strengthen our foundation and drive significant future growth.
The board of directors will have four members: Mike Ho, Asher Genoot, Justin Mateen, and Michael Broukhim. The mining company said that it will provide exclusive ASIC colocation and managed services to American Bitcoin, as well as day-to-day management through a shared services agreement.
Trump Familys Crypto Expansion
The latest development comes after Eric Trump recently joined Metaplanets Strategic Board of Advisors.
Besides, Donald Trumps push to make the US a prominent player in the crypto industry is gaining traction through the familys ongoing initiatives in the crypto industry.
Apart from American Bitcoin, they have also launched World Liberty Financial (WLF), which has invested $85 million in cryptocurrencies since its founding. WLF is now looking into introducing a stablecoin.
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Text source: CryptoPotato
