Trump-backed American Bitcoin raises $220 million to buy bitcoin and mining equipment

American Bitcoin, the recently launched bitcoin mining firm backed by Eric Trump and Donald Trump Jr., raised $220 million to purchase bitcoin and crypto mining equipment, according to a recent filing.

The raise came after the company issued and sold over 11 million new shares to private investors last Friday, a recent filing from Hut 8, a majority owner of American Bitcoin , showed. Around $10 million worth of shares were sold for bitcoin instead of dollars, at an exchange rate of $104,000 per bitcoin. 

"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," the filing noted. After deducting the fees, the company made net proceeds of around $215 million.

American Bitcoin launched at the end of March after Hut 8 partnered with American Data Centers, a firm that the U.S. President's two eldest sons invest in. This further increased the Trump family's involvement with crypto and related businesses, aligning with Donald Trump's stated goal of positioning the U.S. as a global leader in blockchain and digital assets.

The company expects to go public in the second half of the year through a SPAC merger with Gryphon Digital Mining and will trade on the Nasdaq under the ticker symbol ABTC.