American Bitcoin Raises $220 Million for Bitcoin Purchase and Mining Expansion

American Bitcoin, a mining company backed by Eric Trump and Donald Trump Jr., has successfully raised $220 million through a private placement deal. This funding round exceeded its initial target of $200 million, with $10 million of the total amount paid in Bitcoin, valued at $104,000 per coin at the time of the transaction. The capital raised will be used to purchase Bitcoin and new mining equipment, as outlined in a recent regulatory filing.

The proceeds from this funding round, amounting to approximately $215 million after accounting for associated fees, will support American Bitcoin's strategic goals of accumulating Bitcoin and expanding its mining infrastructure. The company plans to use these funds to increase its holdings of Bitcoin and to acquire advanced mining hardware, thereby scaling its operations and enhancing its on-chain presence.

American Bitcoin was launched in March 2025 following a partnership between Hut 8, a crypto mining firm, and American Data Centers, which counts Eric Trump and Donald Trump Jr. as investors. This collaboration has brought additional visibility to the Trump family’s involvement in crypto-related ventures. The firm’s direct investment in Bitcoin, paired with the purchase of mining machinery, positions it to increase its on-chain presence and aligns with President Donald Trump's public statements about making the U.S. a leader in blockchain technology.

The company also confirmed its plans to become publicly listed later this year through a merger with Gryphon Digital Mining, a special purpose acquisition company. The merged firm will list on the Nasdaq under the ticker symbol ABTC. This SPAC deal follows a pattern seen across the crypto sector, where firms use public listings to access larger pools of capital. With the Trump family’s involvement and the newly raised funds, American Bitcoin aims to expand its role in the U.S. mining sector. The process is expected to be finalized in the second half of 2025.

The decision to accept $10 million in Bitcoin during the private placement is notable, marking a growing trend among mining companies to directly transact in the assets they help secure. This approach reduces dependence on traditional finance while enabling a more flexible treasury strategy. American Bitcoin has not disclosed how much Bitcoin it plans to purchase using the newly acquired funds. However, the company’s model suggests a dual-track expansion—both in acquiring the digital asset and in scaling its mining capacity.

As the mining sector continues to adapt to halving cycles and rising network difficulty, access to new capital remains a key factor for expansion. With $220 million secured, American Bitcoin has positioned itself to pursue that path, reflecting the growing institutional interest in digital assets and the transformation of Bitcoin mining from a hobbyist activity to an institutional business requiring significant investment.