Trump-linked American Bitcoin raises $220M for mining, treasury

American Bitcoin, a majority-owned subsidiary of crypto mining steadfast Hut 8, has raised $220 cardinal to bargain Bitcoin mining instrumentality and to bolster the company’s Bitcoin treasury.

According to a regulatory filing, 11 cardinal shares were issued successful a backstage placement connected Friday, with gross proceeds amounting to $220 million. 

However, $10 cardinal worthy of shares were sold for Bitcoin alternatively of cash, with the mean outgo of acquisition lasting astatine $104,000 per coin.

On June 10, it was reported that American Bitcoin’s Bitcoin treasury stood astatine 215 Bitcoin.

Form 8-K filing with the SEC shows Hut 8 subsidiary American Bitcoin raised $220 cardinal from organization investors

Notably, the steadfast has ties to the Trump family, arsenic President Donald Trump’s sons, Donald Trump Jr. and Eric Trump, were among the founders of American Bitcoin. Hut 8 acquired a bulk stake successful the steadfast connected March 31.

Hut 8 opens crypto trading bureau successful Dubai

Meanwhile, Hut 8 is expanding its operations to Dubai by opening an bureau successful the city, according to a Bloomberg report. The intent down the enlargement is to commercialized cryptocurrencies and accumulate integer assets.

The institution was registered with the authorities connected June 23 nether Hut 8 Investment Ltd.

Hut 8 CEO Asher Genoot told Bloomberg that the company’s Dubai enlargement volition “enhance the precision and ratio of Hut 8’s superior strategy.”

Related: American Bitcoin’s ambition is to predominate mining — Hut 8 CEO

The UAE has go a hub for crypto startups successful caller years owed to its favorable crypto regulations and taxation structure.

However, crypto startups inactive request to lay retired a ineligible strategy to debar missteps and comply with section regulations.

The caller Dubai bureau has nary ties to American Bitcoin, a Hut 8 spokesperson told Bloomberg.

Publicly traded company

In May, it was announced that American Bitcoin would spell nationalist by merging with Gryphon Digital Mining, a crypto-mining institution listed connected the Nasdaq exchange.

The woody volition beryllium conducted via a banal swap, with the caller entity utilizing the American Bitcoin brand. Eric Trump volition beryllium connected the committee post-merger.

Under the caller structure, existing shareholders of American Bitcoin volition clasp 98% of the recently formed entity. Hut 8 volition proceed to oversee the operational activities of the recently formed venture.

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