Hut 8 & Trump Family Launch Bitcoin Mining Venture
Bitcoin mining company Hut 8 has announced a joint venture with Eric Trump and Donald Trump Jr. to establish American Bitcoin Corp., a new subsidiary focused on large-scale Bitcoin mining and strategic Bitcoin reserve development.
American Bitcoin Corp: A New Player in Bitcoin Mining
Hut 8 is contributing its ASIC miners in exchange for a majority stake in American Data Centers, Inc., which has been renamed American Bitcoin Corp. This collaboration positions Hut 8 as American Bitcoin Corp.'s exclusive infrastructure and operations partner under long-term agreements, ensuring stable revenue streams.
Building a Large-Scale Bitcoin Mining Operation
The goal is to create the world's largest and most efficient Bitcoin mining operation, complemented by a substantial strategic Bitcoin reserve. This combines Hut 8's mining expertise with the Trump family's business acumen and capital market experience. Eric Trump stated, "By combining Hut 8’s 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."
Hut 8's stock price saw a 5.45% increase in pre-market trading following the announcement, reaching $12.36, although it remains down 46% year-to-date (YTD).
Industry Context and Recent Developments
The Bitcoin mining industry is currently experiencing volatility. Analyst Ali Martinez reports that miners recently sold 2,400 BTC (approximately $220 million). Meanwhile, competitor Marathon Digital Holdings announced a $2 billion stock offering to expand its Bitcoin holdings.
The Bitcoin price has also faced selling pressure, dropping 1.7% to $81,500. The market awaits the impact of potential upcoming events.
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