Private Placement Raises $220 Million: Partly Paid in Bitcoin
Hut 8 Corp. filed with the SEC that its majority-owned subsidiary, American Bitcoin Corp., has raised $220 million in a private stock placement with accredited investors, with a portion of the investment made in Bitcoin. The company announced that it sold over 11 million shares of its Class A common stock during the first closing of the transaction on June 27, following a June 24 agreement with accredited investors. The offering included $10 million worth of shares purchased with Bitcoin, using a conversion rate of $104,000 per Bitcoin. After fees and commissions, the company received approximately $215 million in net proceeds. The shares were sold under Rule 506 of Regulation D, exempting the offering from SEC registration.
Use of Funds: Expand Bitcoin Reserves and Acquire Miners
The filing stated: “The Company intends to use the net proceeds to fund its strategic and Bitcoin accumulation goals, which may include, but are not limited to, the purchase of Bitcoin and/or miners.” This indicates American Bitcoin will allocate most of the capital directly to increasing its BTC holdings while also procuring additional mining hardware to boost hash rate. This aligns with the trend of publicly listed companies like MicroStrategy (now Strategy) aggressively accumulating Bitcoin.
Corporate Restructuring and IPO Plans: Reverse Merger with Gryphon Digital Mining
On March 31, Hut 8 announced it was transferring substantially all of its Bitcoin mining equipment to American Bitcoin in exchange for 80% of the newly formed company’s stock. Later in May, American Bitcoin announced plans to go public through a reverse merger with Gryphon Digital Mining, with intentions to begin trading on the Nasdaq under the ticker ABTC as early as the third quarter. This capital maneuver reveals Eric Trump’s team’s long-term vision for crypto mining and asset management.
Trump Family Crypto Strategy: Don Trump Jr. Speaks Out and Trump Media’s Plan
Also in May, Trump Media announced plans to raise $2.5 billion to build its own Bitcoin treasury, following the lead of Michael Saylor’s Strategy, which has increased its stock price by accumulating over 597,325 Bitcoin at the time of writing. Don Trump Jr. emphasized: “We’re seriously on crypto—we’re seriously on Bitcoin. We’re in three major deals. I believe we’re at the beginning of what will be the future of finance. And the opportunity is massive.” These moves demonstrate that the Trump family is actively integrating Bitcoin into their business empire.