1-4-2025 – Hut 8 (HUT), the Canadian bitcoin mining titan, has birthed a new venture—American Bitcoin Corp.—in a high-profile alliance with the Trump family. This subsidiary, however, might not stay tethered for long. Analysts at brokerage Clear Street suggest it could be carved out, freeing Hut 8 to sharpen its focus on the lucrative realm of data centre hosting. The report, released on Monday, paints a picture of a company poised to harness more power and expand its footprint in this high-margin arena, with the tantalising prospect of landing a hyperscaler deal as a game-changer.
The Trump connection adds a layer of intrigue. Eric Trump and Donald Trump Jr. are folding their outfit, American Data Centers, into this new mining entity, snapping up a 20% stake. Hut 8 holds the lion’s share at 80%, tossing nearly 61,000 mining rigs into the mix. Eric Trump will step into the role of chief strategy officer, a move that investment bank KBW hails as a potential boon. His industry clout and well-placed connections—nodding to his famous lineage—could turbocharge the venture’s prospects. KBW slapped an outperform rating on Hut 8’s stock, eyeing a lofty $30 target.
Meanwhile, the broader sector is buzzing with a new vibe. Last year, Core Scientific (CORZ) struck gold with a deal to supply cloud computing giant CoreWeave, sparking a rethink among investors. Bitcoin miners pivoting to artificial intelligence and high-performance computing (HPC) suddenly look like the next big thing, and Hut 8 is riding that wave. Clear Street predicts a growth spurt kicking off in the latter half of the year, fuelled by the rollout of a BITMAIN Colocation agreement. The broker’s bullish take comes with a buy rating and a $23 price target—optimism reflected in the stock’s early Monday climb, up over 4% to $12.10.
For now, American Bitcoin Corp. will nestle within Hut 8’s financials, but the possibility of a spin-off looms large. If it happens, Hut 8 could double down on hosting data centres, a steadier cash cow compared to the rollercoaster of crypto mining. It’s a strategic shuffle that blends family ties, cutting-edge tech, and a dash of Wall Street swagger—setting the stage for a compelling chapter in Hut 8’s evolution.
