Hut 8 Raises $220 Million, Expands to Dubai for Crypto Growth

Hut 8, a Bitcoin mining firm with ties to the Trump family, has recently expanded its operations by raising $220 million to purchase Bitcoin and mining infrastructure. This significant funding round comes as the company also establishes a new office in Dubai, a burgeoning hub for cryptocurrency activities. The Dubai office, registered with the Dubai International Financial Centre, will focus on trading and digital asset strategies, adding to Hut 8's existing facilities in Texas, New York, and Alberta, Canada.

The company's expansion into Dubai is part of a broader trend of Trump-linked crypto ventures gaining traction in the United Arab Emirates. Hut 8 is the majority owner of American Bitcoin, a mining venture co-founded by Eric Trump, who served as its Chief Strategy Officer. Eric Trump's brother, Donald Jr., is also a shareholder in the company. Former Hut 8 Chief Commercial Officer Matt Prusak now leads American Bitcoin, with two Hut 8 executives sitting on its board. American Bitcoin recently announced plans to go public via a merger with NASDAQ-listed Gryphon Digital Mining.

While the Trump family has promoted the idea of making the U.S. the global capital of crypto innovation, their business interests have increasingly shifted towards the UAE. Dubai, in particular, has become a magnet for crypto firms due to its low taxes and relatively loose regulatory framework. However, this environment has also raised concerns about money laundering and financial crime. The city's real estate and financial sectors have long been scrutinized for facilitating illicit financial flows, with investigations highlighting Dubai's role as a haven for money launderers and organized crime groups.

The Aqua 1 Foundation, a UAE-based fund, has recently invested $100 million in tokens issued by World Liberty Financial, another crypto venture backed by Trump. One of its co-founders, Zach Witkoff, is the son of Steve Witkoff, a longtime Trump ally and his former special envoy to the Middle East. In neighboring Abu Dhabi, USD1, a stablecoin launched by World Liberty Financial, is being used to underpin a $2 billion investment in crypto exchange Binance by local investment firm MGX.

The Trump family has long had ties with the UAE, including operating a golf club and a currently under-construction skyscraper. The Trump International Hotel and Tower in Dubai will include luxury residences, a hotel, and what is billed as the world's highest swimming pool. Announced earlier this year, the development allows property purchases in cryptocurrency, as stated by Eric Trump in April.

Despite efforts in the U.S. by Democrats to stymie the ability of sitting presidents to profit from crypto deals, these attempts have yet to gain any traction. The growing status of Dubai as a crypto hub, while controversial, continues to attract significant investment and attention from global crypto players, including those with ties to the Trump family.