Hut 8 Stock Gains Pre-Market On Launch Of Trump-Backed Mining Venture – Retail Sentiment Lags
The venture, focused on large-scale Bitcoin mining and strategic Bitcoin reserves, also named Eric Trump its chief strategy officer.
FollowHut 8 (HUT) shares surged as much as 9% in pre-market trading Monday, bucking a broader downturn among Bitcoin miners after the company announced the launch of a new subsidiary, American Bitcoin.
The venture, focused on large-scale Bitcoin mining and strategic Bitcoin reserves, also named Eric Trump its chief strategy officer.
The new entity was formed after Hut 8 spun off most of its ASIC miners in exchange for an 80% stake in American Data Centers, Inc. – backed by a group of investors including Eric Trump and Donald Trump Jr. – dubbed American Bitcoin.
While the subsidiary will operate independently, its financial results will be consolidated under Hut 8’s reporting.
Hut 8 will also serve as the exclusive infrastructure and operations partner, securing long-term revenue streams for its Power and Digital Infrastructure segments.
Hut 8 framed the transaction as a strategic realignment that combines its cost-efficient infrastructure development capabilities with Trump’s commercial expertise and capital markets experience.
"From the start, we’ve backed our conviction in Bitcoin—personally and through our businesses," Donald Trump Jr. said. "...Simply buying Bitcoin is only half the story. Mining it on favorable economics opens an even bigger opportunity. We’re excited to bring investors into that equation through a platform engineered to execute on this thesis and deliver real, tangible participation in Bitcoin’s growth."
Hut 8 CEO Asher Genoot described the restructuring as a way to create two complementary businesses, each tailored for its specific function.
“By carving out our mining business into a standalone entity that will raise its own capital, we align each segment of the business with its respective cost of capital," Genoot said.
Hut 8 retail sentiment and message volume on March 31 as of 7:15 a.m. ET | Source: Stocktwits
On Stocktwits, retail sentiment around Hut 8’s stock dipped deeper into ‘bearish’ territory.
One user expects Hut 8’s stock to rise above $12.70 due to the news.
Another called the news a “strategic power play.”
In addition to Eric Trump, American Bitcoin’s leadership team includes Mike Ho as executive chairman and Matt Prusak as CEO.
Its board comprises Ho, Hut 8 CEO Asher Genoot, and entrepreneurs Justin Mateen and Michael Broukhim. Ho, based in Dubai, is also the CEO and co-founder of US Bitcoin Corp.
The announcement comes amid strengthening financial ties between the U.S. and the United Arab Emirates (UAE). Earlier this month, the UAE committed to a 10-year, $1.4 trillion investment framework in the U.S. following a meeting with President Donald Trump.
In January, Trump unveiled a $500 billion AI infrastructure project, dubbed Stargate, which has attracted significant investment from Abu Dhabi-based MGX, a firm led by Sheikh Tahnoun bin Zayed Al Nahyan, brother of the UAE’s President.
The Information reported that MGX is contributing approximately $7 billion to the initiative, which aims to build AI infrastructure in the U.S. before scaling to half a trillion dollars over time.
Hut 8’s stock is up 16% over the past year but has fallen 44% in 2025.
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