Hut 8 Corp. (NASDAQ:HUT) shares are trading lower Monday, potentially after the company announced it is spinning off its Bitcoin mining operations into a new entity, American Bitcoin, in partnership with Eric Trump.
What To Know: Hut 8 transferred most of its ASIC miners to American Bitcoin in exchange for an 80% stake. The new company aims to become the largest Bitcoin miner with a target of 50+ exahashes per second and plans to build a strategic Bitcoin reserve. It also intends to go public.
American Bitcoin will operate under Hut 8's Compute segment, but Hut 8 will manage its infrastructure and operations under long-term agreements. This allows Hut 8 to focus on infrastructure while American Bitcoin handles mining.
The leadership team includes Mike Ho as Executive Chairman, Matt Prusak as CEO and Eric Trump as Chief Strategy Officer. The board includes Ho, Hut 8 CEO Asher Genoot, Justin Mateen and Michael Broukhim.
Eric Trump and Donald Trump Jr. said the deal supports Bitcoin and decentralized finance. Hut 8's CEO said the spin-off allows each business to raise capital separately.
Price Action: Hut 8 shares are down 0.81% at $11.63 at the time of writing, according to Benzinga Pro.
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