American Bitcoin, a majority-owned subsidiary of crypto mining giant Hut 8, has successfully raised $220 million in a private placement aimed at expanding its Bitcoin mining capabilities and bolstering its Bitcoin treasury. The company issued 11 million shares on Friday, generating gross proceeds of $220 million, according to a recent regulatory filing. Interestingly, $10 million worth of these shares were purchased using Bitcoin rather than cash, with the average cost of acquisition noted at $104,000 per coin. As of June 10, American Bitcoin held a treasury of 215 Bitcoin, reflecting its strategy of strengthening its on-balance-sheet crypto holdings alongside its mining operations. The firm has notable connections with the Trump family, as former President Donald Trump’s sons, Donald Trump Jr. and Eric Trump, were among the co-founders of American Bitcoin. Hut 8, which acquired a majority stake in the firm on March 31, continues to drive the company’s strategic direction as it prepares for further growth. Hut 8 Expands to Dubai Amid Crypto Market Push In a parallel move, Hut 8 is expanding its footprint to Dubai, launching a new office registered under Hut 8 Investment Ltd. on June 23, according to a Bloomberg report. The expansion aims to enhance Hut 8’s crypto trading capabilities and digital asset accumulation strategy, leveraging the UAE’s favorable crypto regulations and tax structure. Asher Genoot, CEO of Hut 8, stated that the Dubai office will “enhance the precision and efficiency of Hut 8’s capital strategy ,” allowing the firm to execute trades and manage capital with greater flexibility. However, a spokesperson clarified to Bloomberg that this new Dubai office operates independently of American Bitcoin and does not have operational ties with the subsidiary. The UAE has emerged as a hub for crypto startups in recent years, but companies are still required to maintain robust legal compliance frameworks to navigate evolving local regulations while operating within the jurisdiction. Path Toward Public Listing via Nasdaq Merger In May, it was announced that American Bitcoin would become a publicly traded company by merging with Gryphon Digital Mining, a crypto-mining firm listed on the Nasdaq . The merger, structured as a stock swap, will see the newly combined entity operate under the American Bitcoin brand. Eric Trump is set to join the board following the merger, while existing shareholders of American Bitcoin will retain 98% ownership of the combined company. Hut 8 will continue to oversee operational activities, further positioning American Bitcoin to scale its presence in the mining and crypto treasury sectors as it transitions to public markets. The post American Bitcoin Raises $220 Million to Expand Mining Operations and Treasury appeared first on TheCoinrise.com .
