American Bitcoin, a majority-owned subsidiary of crypto mining firm Hut 8, has raised $220 million to buy Bitcoin mining equipment and to bolster the company’s Bitcoin treasury.

According to a regulatory filing, 11 million shares were issued in a private placement on Friday, with gross proceeds amounting to $220 million. 

However, $10 million worth of shares were sold for Bitcoin instead of cash, with the average cost of acquisition standing at $104,000 per coin.

On June 10, it was reported that American Bitcoin’s Bitcoin treasury stood at 215 Bitcoin.

Notably, the firm has ties to the Trump family, as President Donald Trump’s sons, Donald Trump Jr. and Eric Trump, were among the founders of American Bitcoin. Hut 8 acquired a majority stake in the firm on March 31.

Meanwhile, Hut 8 is expanding its operations to Dubai by opening an office in the city, according to a Bloomberg report. The purpose behind the expansion is to trade cryptocurrencies and accumulate digital assets.

The company was registered with the authorities on June 23 under Hut 8 Investment Ltd.

Hut 8 CEO Asher Genoot told Bloomberg that the company’s Dubai expansion will “enhance the precision and efficiency of Hut 8’s capital strategy.”

The UAE has become a hub for crypto startups in recent years due to its favorable crypto regulations and taxation structure.

However, crypto startups still need to lay out a legal strategy to avoid missteps and comply with local regulations.

The new Dubai office has no ties to American Bitcoin, a Hut 8 spokesperson told Bloomberg.

In May, it was announced that American Bitcoin would go public by merging with Gryphon Digital Mining, a crypto-mining company listed on the Nasdaq exchange.

The deal will be conducted via a stock swap, with the new entity using the American Bitcoin brand. Eric Trump will be on the board post-merger.

Under the new structure, existing shareholders of American Bitcoin will hold 98% of the newly formed entity. Hut 8 will continue to oversee the operational activities of the newly formed venture.

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