Eric Trump’s American Bitcoin Raises $220 Million in Private Stock Sale To Buy More BTC
Hut 8 Corp. filed with the SEC that its majority-owned subsidiary, American Bitcoin Corp., has raised $220 million in a private stock placement with accredited investors, with a portion of the investment made in Bitcoin.
The company announced that it sold over 11 million shares of its Class A common stock during the first closing of the transaction on June 27, following a June 24 agreement with accredited investors. The offering included $10 million worth of shares purchased with Bitcoin, using a conversion rate of $104,000 per Bitcoin. After fees and commissions, the company received approximately $215 million in net proceeds.
The funding will be used to grow the company’s Bitcoin reserves and purchase additional mining equipment. The shares were sold under Rule 506 of Regulation D, exempting the offering from SEC registration.
“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.” stated the filing.
On March 31, Hut 8 announced it was transferring substantially all of its Bitcoin mining equipment to American Bitcoin in exchange for 80% of the newly formed company’s stock. Later in May, American Bitcoin announced plans to go public through a reverse merger with Gryphon Digital Mining, with intentions to begin trading on the Nasdaq under the ticker ABTC as early as the third quarter.
Also in May, Trump Media announced plans to raise $2.5 billion to build its own Bitcoin treasury, following the lead of Michael Saylor’s Strategy, which has increased its stock price by accumulating over 597,325 Bitcoin at the time of writing.
“We’re seriously on crypto—we’re seriously on Bitcoin,” Don Trump Jr. emphasized. “We’re in three major deals. I believe we’re at the beginning of what will be the future of finance. And the opportunity is massive.”
This post Eric Trump’s American Bitcoin Raises $220 Million in Private Stock Sale To Buy More BTC first appeared on Bitcoin Magazine and is written by Oscar Zarraga Perez.
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