Hut 8 Moves Its Miners Into Eric Trump-Backed American Bitcoin Corp
Hut 8 (TSX: HUT) is evidently looking to align itself heavily with the Trump Administration, announcing this morning the launch of a new subsidiary that is backed by Eric Trump and Donald Trump Jr.
The new subsidiary, referred to as American Bitcoin Corp, is to be majority owned by Hut 8 and will focus on industrial-scale bitcoin mining alongside strategic bitcoin reserve development. The subsidiary reportedly has a path towards achieving excess of 50 EH/s, following Hut 8 contributing substantially all of its ASIC miners to American Data Centers Inc in exchange for an initial 80% interest in the venture, prior to changing its name to American Bitcoin Corp.
American Data Centers was formed by a group of investors that included both Eric Trump and Donald Trump Jr.
Bitcoin mining operations previously ran through Hut 8’s Compute segment will remain within the segment, but are to operate through the American Bitcoin subsidiary. Given the majority ownership interest held by Hut 8, the results will initially be consolidated under Hut 8’s financial statements.
As part of the arrangement, Hut 8 will be the exclusive infrastructure and operations partner for American Bitcoin, with a number of long-term commercial agreements said to have been entered into by the two parties for stable, contracted revenue streams for Hut 8. Hut 8 is to also provide day to day management services through a shared services agreement.
American Bitcoin will be lead by three individuals initially. Miko Ho is to serve as executive chairman, while Matt Prusak is to be CEO and Eric Trump is to serve as chief strategy officer. The board of directors meanwhile will consist of Miko Ho, Asher Genoot, Justin Mateen and Michael Broukhim.
The long term intent of American Bitcoin is said to be the achievement of a public listing for the entity.
Hut 8 last traded at $16.79 on the TSX.
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