Trump-Backed Firm American Bitcoin Makes First $23M BTC Purchase

American Bitcoin, the new mining firm launched with support from Eric Trump and Donald Trump Jr., has added more than 215 BTC to its balance sheet, amounting to over $23 million as of May 31. The move was disclosed in a filing with the U.S. Securities and Exchange Commission and marks the company’s first major Bitcoin purchase under its treasury strategy.

The acquisition reflects American Bitcoin’s long-term approach to BTC accumulation. Formed in March through a partnership with Hut 8, the company aims to build scalable mining operations while steadily growing its Bitcoin reserves. The model combines capital-light infrastructure with long-term BTC ownership, using mining primarily as a tool to build Bitcoin reserves.

Mining Strategy and Custody Ties

In its SEC filing, American Bitcoin emphasized that accumulating BTC is its core mission, positioning itself to influence the future of the network. It believes that producing Bitcoin at a discount offers a long-term strategic edge by enabling the company to build strong reserves.

The company outlined a three-part operational model. First, establishing efficient mining infrastructure. Second, growing a substantial Bitcoin reserve. And third, contributing to the broader Bitcoin ecosystem. Central to this plan is mining Bitcoin below market cost, using the surplus to reinforce its treasury and increase its influence over time.

To execute this strategy, American Bitcoin outsources mining operations to third-party pools such as Foundry and Luxor. Notably, both of these firms charge less than 1% of daily output in fees. For custody, it partners with Coinbase, employing cold storage, multi-factor authentication, and limited withdrawal access to maintain tight security.

American Bitcoin Prepares for Nasdaq Listing

In May, the Trump-backed firm announced plans to go public through a merger with Gryphon Digital Mining. The stock-for-stock deal is expected to close by the third quarter of 2025. Once finalized, the combined company will continue under the American Bitcoin name and list on Nasdaq using the ticker ABTC.

Ahead of the merger, American Bitcoin continues to operate with a lean structure. As of the end of May, it had one full-time employee and ran three mining sites located in Niagara Falls, New York; Medicine Hat, Alberta; and Orla, Texas. These facilities operate under a service agreement with Hut 8, which provides infrastructure and support.

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