Trump-Linked American Bitcoin Raises $220M for Bitcoin Mining Equipment

American Bitcoin, the Trump-backed, majority-owned subsidiary of crypto mining firm Hut 8, has doubled down on its Bitcoin strategy. The company has raised more than $220 million through the sale of its common stock

According to a Form 8-K filing with the United States Securities and Exchange Commission (SEC), the proceeds will be used to fund American Bitcoin’s (BTC) accumulation and purchase of Bitcoin mining equipment.

American Bitcoin Raises $220M

The filing revealed that on June 24 American Bitcoin agreed to sell its common stock to accredited investors in a private placement. The Class A common stock was valued at $0.0001 per share. Notably, the intention was to raise between $200 million and $250 million. 

As of June 27, the company had issued and sold over 11 million shares, for gross proceeds in cash and BTC of more than $220 million. Net proceeds totaled $215 million after certain fees and expenses were deducted, pursuant to the private agreement. Notably, the company accepted BTC for $10 million worth of shares at the rate of $104,000 per coin.

“The Company intends to use the net proceeds to fund its strategic and Bitcoin accumulation goals, which may include, but are not limited to, the purchase of Bitcoin and/or miners. The Shares have not been registered under the Securities Act of 1933, as amended (the ‘Securities Act’) and may not be offered or sold absent registration or an applicable exemption from registration requirements,” Hut 8 stated in the filing.

Plans to Go Public Q3 2025

The latest development comes three weeks after American Bitcoin spent more than $23 million to bolster its balance sheet. The 215 BTC purchase was the firm’s first major one under its treasury strategy. It also reflects a long-term approach to BTC accumulation.

American Bitcoin aims to consistently increase its BTC reserves, using mining as a primary tool. The entity’s mission entails establishing an efficient mining structure, growing a substantial BTC reserve, and contributing to Bitcoin’s broader ecosystem. The firm already has three mining sites in Texas, New York, and Alberta. Additionally, it outsources its operations to third-party pools, such as Foundry and Luxor.

As American Bitcoin expands its mining infrastructure, it plans to go public in Q3 through a stock-for-stock merger deal with Gryphon Digital Mining.

Get Trending Crypto News as It Happens. Follow CoinTab News on X (Twitter) Now