American Bitcoin, a majority-owned subsidiary of crypto mining firm Hut 8, has raised $220 million to buy Bitcoin mining equipment and to bolster the companys Bitcoin treasury.According to a regulatory filing, 11 million shares were issued in a private placement on Friday, with gross proceeds amounting to $220 million.However, $10 million worth of shares were sold for Bitcoin instead of cash, with the average cost of acquisition standing at $104,000 per coin.On June 10, it was reported that American Bitcoins Bitcoin treasury stood at 215 Bitcoin.Form 8-K filing with the SEC shows Hut 8 subsidiary American Bitcoin raised $220 million from institutional investorsNotably, the firm has ties to the Trump family, as President Donald Trumps sons, Donald Trump Jr.
and Eric Trump, were among the founders of American Bitcoin.
Hut 8 acquired a majority stake in the firm on March 31.Hut 8 opens crypto trading office in DubaiMeanwhile, Hut 8 is expanding its operations to Dubai by opening an office in the city, according to a Bloomberg report.
The purpose behind the expansion is to trade cryptocurrencies and accumulate digital assets.The company was registered with the authorities on June 23 under Hut 8 Investment Ltd.Hut 8 CEO Asher Genoot told Bloomberg that the companys Dubai expansion will enhance the precision and efficiency of Hut 8s capital strategy.Related: American Bitcoins ambition is to dominate mining Hut 8 CEOThe UAE has become a hub for crypto startups in recent years due to its favorable crypto regulations and taxation structure.However, crypto startups still need to lay out a legal strategy to avoid missteps and comply with local regulations.The new Dubai office has no ties to American Bitcoin, a Hut 8 spokesperson told Bloomberg.Publicly traded companyIn May, it was announced that American Bitcoin would go public by merging with Gryphon Digital Mining, a crypto-mining company listed on the Nasdaq exchange.The deal will be conducted via a stock swap, with the new entity using the American Bitcoin brand.
Eric Trump will be on the board post-merger.Under the new structure, existing shareholders of American Bitcoin will hold 98% of the newly formed entity.
Hut 8 will continue to oversee the operational activities of the newly formed venture.Magazine: North Korea crypto hackers tap ChatGPT, Malaysia road money siphoned
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