Trump Family-Linked Crypto Firm Raises $220M for Bitcoin Mining

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In a significant development within the cryptocurrency sector, American Bitcoin — a digital asset company associated with former U.S. President Donald Trump’s family — has raised $220 million for Bitcoin mining and digital asset acquisition. The news, first reported by Bloomberg on July 1, 2025, has sparked renewed interest in the intersection of politics, energy-intensive blockchain operations, and institutional investment in decentralized technologies.

This strategic fundraising highlights growing confidence in Bitcoin’s long-term value and infrastructure potential, especially as regulatory landscapes evolve and major players enter the space.

The Rise of American Bitcoin

American Bitcoin is a newly emerged player in the crypto mining industry backed by high-profile investors, including Eric Trump, the president's son. The firm was established through a spin-off from a newly formed division of an investment bank linked to Trump advisors. Its primary mission is to integrate Bitcoin and other digital assets into mainstream corporate finance and public markets.

According to filings submitted by Hut 8 CORP., a major shareholder in American Bitcoin, the company issued new shares to private investors last Friday. Notably, approximately $10 million worth of these shares were sold in Bitcoin rather than traditional fiat currency — a symbolic move underscoring the firm’s deep alignment with cryptocurrency principles.

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This transaction marks one of the largest known instances of equity being purchased directly with Bitcoin, signaling increasing acceptance of crypto as both a store of value and a transactional asset among elite financial circles.

Strategic Partnership with Hut 8 CORP.

Hut 8 CORP., a well-established North American Bitcoin mining operator, transferred its mining hardware to American Bitcoin in exchange for an 80% ownership stake. This move effectively positions American Bitcoin as a major operator in the blockchain infrastructure space, leveraging existing technological assets while pursuing aggressive expansion plans.

The collaboration allows Hut 8 to focus on broader strategic goals, including a planned merger with Gryphon Digital Mining Inc., which aims to bring American Bitcoin into the public market. If successful, this merger could significantly increase transparency, liquidity, and investor access to American Bitcoin’s operations.

Bitcoin mining remains a capital- and energy-intensive process. It involves using specialized computers to validate transactions on the blockchain network, for which miners are rewarded with newly minted Bitcoin. As the network grows, so does the computational power required — making access to affordable energy and efficient hardware critical to profitability.

Political Influence Meets Digital Innovation

Since Donald Trump took office, his administration has pursued policies favorable to cryptocurrency innovation, including reduced regulatory barriers and advocacy for U.S.-led blockchain development. His public statements have consistently emphasized making America the “crypto capital of the world,” a vision now mirrored in the entrepreneurial activities of his sons.

Eric Trump and Donald Trump Jr. have been actively involved in multiple blockchain ventures, seeking to capitalize on rising digital asset valuations. Their involvement in American Bitcoin reflects not only personal financial interest but also a broader trend: political figures leveraging influence to drive adoption in emerging tech sectors.

Bloomberg noted that companies and investors worldwide have shown strong interest in engaging the Trump family as advisors or brand ambassadors for crypto-related initiatives. This phenomenon illustrates how reputation, trust, and public visibility can accelerate project visibility and funding in decentralized ecosystems.

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Expansion Beyond North America

While much of American Bitcoin’s current operations are rooted in North America through its partnership with Hut 8, expansion plans are already underway. A representative from Hut 8 confirmed on Monday that the company intends to extend its mining operations to Dubai in the near future. However, they clarified that this international move is independent of its collaboration with American Bitcoin.

Dubai has emerged as a global hub for cryptocurrency innovation, offering favorable regulations, tax incentives, and access to sustainable energy sources — all crucial for energy-demanding mining operations. Establishing a presence there could enhance operational efficiency and diversify geographic risk.

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Frequently Asked Questions (FAQ)

Q: Who owns American Bitcoin?
A: American Bitcoin is majority-owned by Hut 8 CORP., which holds an 80% stake after transferring its mining equipment to the new entity. The company is supported by investors linked to the Trump family, including Eric Trump.

Q: How much money did American Bitcoin raise?
A: The company raised $220 million from private investors, with $10 million of that amount paid in Bitcoin rather than U.S. dollars.

Q: Is Donald Trump directly involved in American Bitcoin?
A: While former President Trump is not listed as a direct owner or executive, the company stems from an investment bank division connected to his advisors. His sons, particularly Eric Trump, are involved as supporters and investors.

Q: What is the significance of selling shares in Bitcoin?
A: Selling equity in Bitcoin demonstrates growing institutional comfort with cryptocurrency as a legitimate financial instrument. It also appeals to crypto-native investors who prefer transacting without converting to fiat.

Q: Will American Bitcoin go public?
A: Yes — through Hut 8’s planned merger with Gryphon Digital Mining Inc., American Bitcoin is expected to become publicly traded, increasing accessibility for retail and institutional investors.

Q: Why is Dubai becoming popular for Bitcoin mining?
A: Dubai offers stable regulations, low taxes, and access to renewable energy — essential factors for profitable and sustainable mining operations amid rising global scrutiny over energy use.

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Looking Ahead: Institutionalization of Crypto Mining

The rise of firms like American Bitcoin signifies a shift toward institutional-grade crypto mining enterprises. With substantial capital inflows, strategic partnerships, and pathways to public listing, these ventures are transforming what was once a decentralized, grassroots movement into a structured, regulated industry.

As more traditional investors seek exposure to digital assets through physical infrastructure rather than speculative trading, the demand for secure, scalable mining operations will continue to grow. Projects backed by recognizable names — especially those aligned with supportive policy environments — are likely to attract disproportionate attention and funding.

In this evolving landscape, American Bitcoin stands at the convergence of politics, finance, and technology — a case study in how legacy influence can accelerate innovation in the blockchain era.