A new Bitcoin mining venture, backed by publicly traded Hut 8 Corp. and an investor group that includes Donald Trump’s sons, announced plans to go public. The company, named American Bitcoin, aims to become a major player in the U.S. crypto mining industry while also seeking additional private capital before its eventual public listing.

Hut 8 contributed most of its Bitcoin mining equipment to American Bitcoin, marking a significant structural shift in its own business model.

While the newly launched entity will operate as a dedicated Bitcoin mining firm based in the US, Hut 8 will now focus primarily on expanding its separate data center operations to support the growing demands of artificial intelligence (AI) applications.

Related: SEC Clarifies Proof-of-Work Crypto Mining Isn’t a Security, Offering Industry Relief

Hut 8 CEO Asher Genoot described the plan during a Bloomberg TV interview  as resulting in two closely linked, but distinct, public companies. One will focus on digital infrastructure and AI services (Hut 8), while the other (American Bitcoin) will focus on Bitcoin production and managing asset reserves. He emphasized this structure intends to achieve greater operational efficiencies and improved economics for both entities.

How Does American Bitcoin Plan to Raise Capital

Genoot also confirmed during a Tuesday investor call that American Bitcoin remains open to accepting private investments before pursuing its planned public listing on a major exchange. 

This fundraising strategy comes as other public Bitcoin mining companies increasingly leverage access to U.S. capital markets. They have raised billions collectively through various equity and debt offerings recently. Despite sector challenges like declining revenues post-halving and increased network competition, these firms have benefited significantly from Bitcoin’s rising price over the past year.

Speaking on the same investor call, Eric Trump stated the goal is to establish American Bitcoin as a leading player in the industry, specifically operating domestically within the United States. He clarified that there are no ties to government operations, citing his long-standing role in private enterprise.

Partnership with Bitmain Raises Questions And Scrutiny

American Bitcoin has also entered into a partnership with Bitmain. Bitmain is a leading China-based manufacturer of specialized Bitcoin mining hardware (ASICs).

This alliance is expected to provide American Bitcoin access to cutting-edge mining technology and enhance its ability to scale its mining operations efficiently as it grows.

Related: Bitdeer Buys Land in Canada for Huge Bitcoin Mining Operation

However, Bitmain’s involvement comes despite the hardware giant facing increased scrutiny from U.S. regulators in related areas. Notably, Bitmain’s AI technology affiliate, Sophgo, has previously been blacklisted by the US government. Reports also indicate U.S. authorities have seized some Bitmain mining equipment shipments during import inspections in the past.