Trump-Backed American Bitcoin Raises $220 Million for Expansion

American Bitcoin, a crypto venture backed by Eric Trump and Donald Trump Jr., has successfully raised $220 million through a private equity round. The funds will be used to expand the company's digital asset mining operations and to purchase Bitcoin and mining equipment. This significant raise highlights the growing institutional interest in Bitcoin mining, which has evolved from a hobbyist activity to a major industry requiring substantial capital investment.

The company announced that $10 million of the total amount raised came from a specific source, indicating a diverse range of investors participating in the funding round. This influx of capital will enable American Bitcoin to enhance its mining capabilities and increase its Bitcoin holdings. The strategic move comes as the broader crypto market continues to attract attention from high-profile figures and institutional investors.

In March, Hut 8, a prominent Bitcoin mining company, transferred "substantially all" of its Bitcoin mining equipment to American Bitcoin in exchange for an 80% stake in the newly formed venture. This transaction underscores the strategic partnership between Hut 8 and the Trump-backed venture, positioning American Bitcoin as a key player in the digital asset mining sector.

The raise also signals American Bitcoin's plans for a potential public debut, as the company aims to expand its operations and solidify its position in the market. The funds will be instrumental in driving the company's growth and innovation in the rapidly evolving crypto landscape. The transformation of Bitcoin mining from a niche activity to a mainstream, institutional business is evident in American Bitcoin's ambitious fundraising efforts and strategic partnerships.

This effort is part of a broader wave of Trump-affiliated ventures tapping into crypto enthusiasm. Both Eric Trump and Donald Trump Jr. have recently supported blockchain initiatives, as their father signals ambitions to position the U.S. as a global crypto leader. The capital raised will fund both bitcoin purchases and mining infrastructure, underscoring American Bitcoin’s intent to scale aggressively amid a renewed bull market. While Hut 8 is also pursuing separate expansion into Dubai, its role in American Bitcoin reflects a growing trend of using established traditional systems to drive crypto growth.