🗞️ Digital Mining Bulletin: ABTC Emerges from the Shadows — Backed by Trumps, Fueled by Bitmain
🗞️ Digital Mining Bulletin: ABTC Emerges from the Shadows — Backed by Trumps, Fueled by Bitmain
Welcome to this week’s edition of the Digital Mining Bulletin — your essential roundup of the most significant moves in institutional Bitcoin mining.
This week, all eyes are on American Bitcoin Corp (ABTC) — a name that’s anything but quiet.
Launched on April 1, 2025, ABTC is the latest spin-out from Hut 8, and it’s making waves not just for its mining strategy — but also for who’s behind it:
🇺🇸 Eric Trump and Donald Trump Jr.
Let’s break down what’s happening behind the scenes of this powerhouse — and why it could become one of the biggest names in global Bitcoin mining.
🧱 A New Mining Giant Is Forming
ABTC is Hut 8’s self-mining division reborn — now structured as a standalone entity through a merger with Gryphon Digital.
An S-4 registration filing reveals ABTC’s ambitions, numbers, and infrastructure strategy as it gears up for a public debut.
- Q1 2025 BTC mined: 135 BTC
- BTC reserves as of May 31: ~215 BTC
- Current hashrate: 10.17 EH/s
- Target capacity: Over 25 EH/s
📈 If achieved, this would place ABTC among the top publicly traded Bitcoin miners in the world.
🔌 Powered by China, Branded as American
Despite its patriotic name, ABTC’s mining capacity is almost entirely dependent on Chinese-manufactured hardware from Bitmain and MicroBT.
Its growth strategy hinges on a 15 EH/s hosting deal originally signed by Hut 8 — featuring 17,280 units of Bitmain’s U3S21EXPH (each delivering a staggering 860 PH/s).
💰 The new S-4 filing reveals the maximum purchase price:
$320 million — roughly $21/TH/s before tariffs.
📝 Hut 8 reserves the right to pass these machines to ABTC, essentially supercharging its fleet overnight.
💸 Mining Cost: $86,303 per BTC 🤯
One of the filing’s most striking disclosures is ABTC’s production cost in Q1:
- 135 BTC mined
- $11.65 million in direct costs (excluding depreciation)
- ➡️ $86,303 per BTC
Why so high?
It could reflect higher-than-average power and maintenance expenses, or a strategic shift to boost Hut 8’s hosting revenue as it distances itself from self-mining.
Either way, this figure stands far above industry norms and raises eyebrows.
🌍 Geopolitical Risk: The China Dependency Problem
The S-4 doesn’t shy away from one big risk:
➡️ U.S. trade tensions and tariff uncertainty.
ABTC’s entire hardware stack relies on Chinese imports — a vulnerability that could lead to:
- Higher tariffs
- Delayed deliveries
- Even full restrictions on future imports
“While the final scope of U.S. trade policy remains uncertain, higher tariffs on mining hardware could impact our cost structure and expansion plans,” the filing states.
This creates a tension between the company’s brand identity and its operational reality.
🔍 Why This Matters for the Mining Industry
If ABTC fully executes its buildout strategy, it will leapfrog into global mining dominance — not only in hashrate, but in influence.
But the success of this strategy depends on:
- 🏗️ Infrastructure readiness
- 🛃 Regulatory stability
- ⚡ Hosting margins
- 📉 Market volatility
And yes — on the ability of a Trump-backed, American-named mining firm to remain resilient despite deep dependencies on Chinese suppliers.
📬 Final Thought from the Digital Mining Bulletin
Whether ABTC becomes a flagship success story or a cautionary tale of overreach, one thing is certain:
⚡ The digital mining arms race is accelerating.
Stay tuned, stay informed, and don’t miss next week’s Digital Mining Bulletin — where we bring you real insights from the institutional frontlines of crypto mining.
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