The company, which is a crypto mining venture, will go public eventually and plans to seek additional private capital before it does, according to Hut 8 CEO Asher Genoot, Bloomberg reported Tuesday (April 1).
“So, you can see this in the long term as two sister publicly traded companies,” Genoot said, per the report, adding that one firm will focus on energy, infrastructure and data centers, while the other will focus on bitcoin, application-specific integrated circuits (ASICs) and reserves, and “together they form a vertically integrated company that has some of the best economics out there.”
Eric Trump, who helped launch the joint venture with his brother, Donald Trump Jr., said earlier Tuesday, per the report, “We are going to become the greatest bitcoin mining company on Earth and we are doing it here in America.”
When announcing the launch of American Bitcoin Corp. Monday, Hut 8 said the new joint venture will focus on bitcoin mining and “strategic bitcoin reserve development.”
“From the start, we’ve backed our conviction in bitcoin — personally and through our businesses,” Trump Jr. said in a Monday press release. “But simply buying bitcoin is only half the story. Mining it on favorable economics opens an even bigger opportunity. We’re excited to bring investors into that equation through a platform engineered to execute on this thesis and deliver real, tangible participation in bitcoin’s growth.”
Digital assets like bitcoin have emerged as a potentially innovative component of the modern capital stack as enterprise finance leaders seek hedges against inflation and economic uncertainty, PYMNTS reported Tuesday.
For example, publicly traded Japanese hotel company Metaplanet said Tuesday that it bought 696 bitcoins for its corporate holdings at a cost of around $60 million. On March 25, retailer GameStop announced that its board of directors approved a revision of its corporate investment policy to allow the company to buy bitcoin with its corporate cash.
