American Bitcoin Corp., a crypto mining venture backed by the Trump family, is reportedly planning to raise capital through an initial public offering (IPO), according to a Bloomberg report from April 1. The move follows Hut 8, a publicly traded Bitcoin (BTC) company, acquiring a majority stake in American Bitcoin (previously known as American Data Centers), which includes founders Donald Trump Jr. and Eric Trump. Post-acquisition, Hut 8 transferred its Bitcoin mining equipment to the newly formed entity, which is not yet publicly traded. While American Bitcoin will primarily focus on crypto mining, Hut 8 aims to concentrate on data center infrastructure, including high-performance computing. Hut 8's CEO, Asher Genoot, highlighted the vision of positioning the two companies as "sister publicly traded companies" that together create a vertically integrated entity with strong economic prospects. Additionally, American Bitcoin is collaborating with Bitmain, a Chinese supplier of Bitcoin mining hardware, which has faced scrutiny following U.S. sanctions against its AI affiliate. In the broader context of the Bitcoin market, miners are diversifying into alternatives like AI data-center hosting, particularly after the significant revenue impacts resulting from the Bitcoin network's recent halving event in April 2024. This halving reduced the mining reward, compelling miners to seek new revenue streams as cryptocurrency prices have been declining, leading to increased pressure on the mining sector.
American Bitcoin Corp., a cryptocurrency mining venture supported by the Trump family, is reportedly looking to raise funds through an initial public offering (IPO). This development comes on the heels of Hut 8, a publicly traded Bitcoin mining company, acquiring a majority stake in American Bitcoin, which was previously known as American Data Centers. Notable figures behind American Bitcoin include Donald Trump Jr. and Eric Trump.
Following the acquisition, Hut 8 transferred its Bitcoin mining equipment to this new entity, which has yet to go public. American Bitcoin is set to concentrate primarily on crypto mining, while Hut 8 plans to focus on data center infrastructure, including high-performance computing. Asher Genoot, CEO of Hut 8, expressed a vision of aligning the two companies as "sister publicly traded companies" that together form a vertically integrated organization with promising economic potential.
Moreover, American Bitcoin is partnering with Bitmain, a Chinese supplier of Bitcoin mining hardware that has recently faced scrutiny due to U.S. sanctions against one of its AI affiliates.
In the wider Bitcoin ecosystem, miners are increasingly pivoting toward alternative business models like AI data-center hosting. This shift is particularly relevant following the Bitcoin network's halving event in April 2024, which significantly impacted mining revenues by reducing the rewards for miners. As a result, miners are seeking new revenue streams amid declining cryptocurrency prices, placing additional pressure on the mining segment.