Author: Weilin, PANews
On March 31st, a seemingly ordinary official announcement of a mining enterprise restructuring was brewing the latest evolution of the North American Bitcoin mining landscape.
North American mining giant Hut 8 announced a collaboration with Eric Trump, the second son of Trump, to establish a new company called American Bitcoin, with the direct goal of becoming the world's largest and most efficient Bitcoin mining enterprise. This is not only a strategic transformation of Hut 8's business structure but also marks another convergence of capital, Trump family influence, and the crypto world.
In a subsequent conference call, the new company American Bitcoin proposed a four-stage development roadmap, planning to achieve a total computing power of over 50 EH/s, with an overall energy efficiency lower than 15 J/TH, and ultimately complete an initial public offering.
Structural Reorganization: Hut 8's Bitcoin Mining Business "Splits and Restarts"
The core of this transaction is Hut 8's significant reorganization of its mining business structure. As a company that started with mining, Hut 8 chose to transfer all self-operated mining machine assets (including ASIC mining machines with computing power over 10 EH/s) to its subsidiary American Data Centers, which was renamed American Bitcoin. Meanwhile, Hut 8 retains 80% controlling stake in the new company, with Eric Trump, Donald Trump Jr., and other original shareholders of American Data Centers holding 20% of the shares.
Notably, American Bitcoin will operate as an independent mining company in the future, planning to expand computing power through capital markets and generate revenue from Bitcoin's price appreciation. Hut 8 itself will transform into a "digital infrastructure" company, focusing on electricity, data center hosting, and operational management services. Its revenue will no longer depend on Bitcoin output but will come from stable fiat currency income—electricity and hosting service fees.
In terms of leadership structure, Eric Trump will serve as the Chief Strategy Officer of American Bitcoin, responsible for driving and defining the company's long-term strategic direction. His responsibilities cover capital raising, company development, and market interfacing. Eric will establish strategic partnerships in finance and operations to keep the growth trajectory aligned with changing market and capital dynamics.
Other executives include Executive Chairman Mike Ho (Hut 8's Chief Strategy Officer), board member Asher Genoot (Hut 8's CEO), CEO Matt Prusak, and two board members Justin Mateen (Tinder co-founder) and Michael Broukhim (co-founder of e-commerce startup FabFitFun).
Expanding through Capital Markets, Vowing to Build the Best Bitcoin Mining Company
Officials stated that they will conduct private placement financing before going public, firmly believing in the company's ability to continuously raise funds through private and public markets. The core logic of this transaction was long-brewing and only truly materialized when meeting Eric's team—Hut 8 will become a stable cash flow power infrastructure and hosting service provider, while American Bitcoin will carry the revenue opportunities brought by Bitcoin's volatility.
As the Chief Strategy Officer of American Bitcoin, Eric Trump's speech at the launch ceremony was highly personal and revealed the value motivations behind this cross-border collaboration.
"I've dealt with physical assets all my life—we've built the best hotels, golf courses, real estate projects, commercial and residential buildings." Eric recalled: "It wasn't until I entered the crazy political world that I truly realized the power of cryptocurrency, especially Bitcoin. I saw banks arbitrarily blocking personal accounts, saw the weaponization of the financial system, where someone who has banked for 20 years still has to wait 6 months for a basic mortgage, and none of it makes sense."
In his view, Bitcoin is a 24/7, global, instantly liquid "digital gold" that doesn't conflict with physical assets like real estate and golf courses but rather complements them. He emphasized that through American Bitcoin, he hopes to "bridge the gap between traditional and digital finance" by building the world's largest and best Bitcoin mining company.
In terms of hardware supply, executives revealed that Bit is setting up a factory in the US to produce ASIC mining machines, and Bitmain is also following suit. Through decentralized procurement and localized production, American Bitcoin hopes to build a globally risk-resistant hardware layout. The advantage of the contract with Bitmain is the flexibility to choose full or batch purchases of mining machines. As sites go into production, they will dynamically adjust procurement pace based on computing power prices and machine costs.
American Bitcoin stated that it maintains cooperation with top manufacturers like Bitmain and Bit, with R&D centers in Southeast Asia to test equipment from various manufacturers. Currently, Bit has set up a factory in the US, and Bitmain is following. They are maintaining supply chain security dialogues with all suppliers to reduce risks through diversified cooperation.
Collaboration Details: Four Stages and Three Key Agreements
American Bitcoin's development path is meticulously broken down into four stages, each with clear computing power and efficiency targets, relying on synergy with Hut 8's existing resources:
Stage One, American Bitcoin takes over the 10 EH/s mining machines (average efficiency around 21.2 J/TH) transferred from Hut 8. This computing power becomes the cornerstone of the company's expansion.
Stage Two, Hut 8 plans to activate a super-large site, execute a signed purchase option, deploy 15 EH/s of U3S21EXPH equipment at the site, and sell these ASIC machines to American Bitcoin. These devices operate in Hut 8's self-developed liquid cooling architecture, which will increase total computing power to around 25 EH/s, with efficiency reduced to about 16.3 J/TH.
Stage Three, American Bitcoin will further acquire and activate another site with exclusive rights in Hut 8's pipeline, deploying additional 10+ EH/s of U3S21EXPH mining machines, bringing total computing power to 35+ EH/s, with efficiency dropping below 16 J/TH.
Stage Four, will replicate this model at another site with exclusive rights, adding 15+ EH/s of Bitmain's U3S21EXPH Bitcoin mining machines, achieving the final goal: 50+ EH/s, with overall efficiency below 15 J/TH. Officials stated that American Bitcoin's initial roadmap demonstrates a replicable, capital-efficient growth strategy with clear investment, orderly execution, and compound learning and optimization in each deployment round.
To ensure operational synergy and cost advantages, Hut 8 and American Bitcoin signed three key agreements:
1. Colocation Agreement
The Colocation Agreement grants Hut 8 exclusive rights to host American Bitcoin's ASIC mining machines at its sites. This agreement will bring continuous fiat income to Hut 8's "digital infrastructure" segment while providing American Bitcoin with high-density, cost-advantageous infrastructure access without capital expenditure.
2. Managed Services Agreement
According to the agreement, Hut 8 will operate all of American Bitcoin's mining business at the hosting sites. This brings a second continuous fiat income stream to Hut 8's "power" segment while allowing American Bitcoin to leverage Hut 8's mature mining operations platform.
3. Shared Services Agreement
Hut 8 will manage American Bitcoin's core business functions, including finance, human resources, and compliance matters. The agreement aims to reduce the burden of building a management team for American Bitcoin, enabling expansion with a lean and efficient cost structure.
The combination of these three agreements allows American Bitcoin to achieve a cost structure similar to vertically integrated miners while avoiding the asset burden of self-building infrastructure and management teams. Therefore, almost all of American Bitcoin's capital can be used to enhance computing power and accumulate Bitcoin.
