American Bitcoin Raises $220 Million in Private Sale

American Bitcoin, a venture linked to Eric Trump and Donald Trump Jr., has successfully raised $220 million through the sale of over 11 million new shares to private investors. This significant funding round underscores the growing interest in the cryptocurrency sector, particularly among high-profile figures and investors.

One of the notable aspects of this fundraising effort is that a portion of the shares, valued at approximately $10 million, was purchased using Bitcoin. The valuation of Bitcoin for this transaction was set at $104,000 per coin, indicating a strong level of crypto-native interest in the offering. This move not only highlights the confidence in the digital currency but also showcases the potential for Bitcoin to be used as a medium of exchange in high-stakes financial transactions.

The company plans to utilize the newly acquired capital to support its infrastructure expansion and to grow its Bitcoin treasury. This includes potential purchases of additional mining equipment and direct acquisitions of Bitcoin. The strategic use of funds aims to enhance the company's operational capabilities and strengthen its position in the competitive mining landscape.

American Bitcoin was founded through a collaboration between Eric Trump and the publicly traded mining firm Hut 8. The company is now preparing for a public debut through an all-stock merger with Gryphon Digital Mining, which is already listed on the Nasdaq. If the merger is approved, the existing shareholders—including Eric Trump, Donald Trump Jr., and Hut 8—will retain a commanding 98% stake in the merged entity. This move is expected to provide the company with greater access to capital markets and enhance its visibility in the public domain.

This development comes as Donald Trump continues to position himself as a supporter of the digital asset space during his ongoing presidential campaign. His alignment with broader Republican Party interests in making the U.S. more crypto-friendly reflects a growing political recognition of the potential benefits of digital currencies. This support could pave the way for more favorable regulatory environments and increased adoption of cryptocurrencies in the future.