Trump announces trade deal with EU following months of negotiations
Investing.com -- Shares of Hut 8 (Nasdaq | TSX: HUT) climbed 4% today after the company announced a partnership with Eric Trump to launch a new venture, American Bitcoin, aimed at industrial-scale Bitcoin mining and strategic Bitcoin reserve development. The collaboration, which involves the strategic contribution of Hut 8’s ASIC miners to American Bitcoin, signifies a major step in Hut 8’s strategy to become a leader in digital infrastructure and compute operations for high-performance use cases, including Bitcoin mining.
The transaction has reshaped Hut 8’s business model, with the company now serving as the exclusive infrastructure and operations partner for American Bitcoin through long-term commercial agreements. These agreements are expected to generate stable, contracted revenue streams for Hut 8’s Power and Digital Infrastructure segments. Furthermore, the results of American Bitcoin will initially be consolidated within Hut 8’s financial statements under its Compute segment.
American Bitcoin, with the strategic input from Eric Trump as Chief Strategy Officer, aims to establish itself as the world’s largest and most efficient Bitcoin miner, while also building a significant strategic Bitcoin reserve. The venture combines Hut 8’s mining operations, infrastructure development capabilities, and disciplined capital allocation approach with the commercial and capital markets expertise of Eric Trump, enhancing the company’s foundation for future growth.
Eric Trump expressed his enthusiasm for the partnership, stating, "It is a great honor to partner with Hut 8, a recognized leader in the Bitcoin space, as we launch American Bitcoin." He highlighted the combined operational excellence and shared passion for Bitcoin and decentralized finance as key drivers for strengthening their foundation and driving significant future growth.
Asher Genoot, CEO of Hut 8, also commented on the launch, describing it as "a pivotal evolution in our platform strategy." He explained that by carving out the mining business into a standalone entity capable of raising its own capital, Hut 8 aligns each business segment with its respective cost of capital. This strategic move creates two focused yet complementary businesses, each purpose-built for its mandate, with American Bitcoin positioned as a pure-play mining platform designed for growth in Bitcoin production and operating leverage.
The leadership team and Board of Directors for American Bitcoin have been established, with Mike Ho serving as Executive Chairman and Matt Prusak as CEO, alongside Eric Trump. Hut 8 will provide exclusive ASIC colocation services, managed services, and day-to-day management services to American Bitcoin under the terms of select commercial agreements.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.