Trump-backed American Bitcoin explores IPO after Hut 8 deal

American Bitcoin Corp., a crypto mining venture backed by Donald Trump Jr. and Eric Trump, is considering an initial public offering (IPO) to raise additional capital following a recent acquisition by Hut 8.

On March 31, Hut 8, a publicly traded Bitcoin (CRYPTO:BTC) miner, acquired a majority stake in American Bitcoin, formerly known as American Data Centers.

The deal involved transferring Hut 8’s mining equipment into the newly formed entity, which remains privately held.

The partnership aims to create two complementary companies: one focused on crypto mining and the other targeting data center infrastructure for high-performance computing.

Asher Genoot, CEO of Hut 8, described the arrangement as "two sister publicly traded companies" that would form a vertically integrated enterprise with optimised economics.

American Bitcoin is reportedly collaborating with Bitmain, a Chinese supplier of Bitcoin mining hardware.

However, Bitmain has faced scrutiny due to the U.S. blacklisting of its artificial intelligence affiliate Sopghgo.

The IPO consideration comes amid broader shifts in the cryptocurrency mining sector.

Following Bitcoin’s April 2024 halving, which reduced mining rewards by half, miners have increasingly diversified into alternative business lines such as AI data center hosting.

Coin Metrics reported that repurposing infrastructure for high-performance computing has become a strategy to mitigate declining revenues.

The potential IPO aligns with predictions that 2025 will be a significant year for cryptocurrency firms entering public markets.

Investment firm Bitwise forecasts multiple "crypto unicorns," including Circle and Kraken, launching IPOs this year due to rising investor demand and institutional adoption.

At the time of reporting, the Bitcoin (BTC) price was $84,615.49.