Miner Weekly: American Bitcoin’s 25 EH/s Dream Rests on Chinese Hardware

This article first appeared in Miner Weekly, Blocksbridge Consulting’s weekly newsletter curating the latest news in bitcoin mining and data analysis from Theminermag.

American Bitcoin Corp (ABTC), the new proprietary Bitcoin mining carve-out from Hut 8, backed by Eric Trump and Donald Trump Jr., is taking shape as it prepares to go public.

The company recently filed an S-4 registration statement as part of its merger with Gryphon Digital, offering fresh insight into its financials, mining strategy, and reliance on Chinese-manufactured hardware as it aims to scale to 25 EH/s.

ABTC, officially launched on April 1, 2025, is the vehicle through which Hut 8 is spinning off its self-mining business, allowing the parent company to focus on power and data center infrastructure. The filing helps explain why Hut 8 has stopped publishing monthly Bitcoin production updates since April.

In Q1 2025, ABTC mined 135 BTC, consistent with what Hut 8 had produced from its proprietary operations (excluding its share of joint ventures) prior to the spin-off. As of May 31, ABTC held about 215 BTC in reserves.

ABTC currently owns 10.17 EH/s of hashrate capacity hosted at Hut 8’s facilities, powered by a mix of Bitmain’s S21 series and MicroBT’s M5X and M6X series miners. But its most ambitious growth lever comes from a 15 EH/s hosting deal that Hut 8 originally signed with Bitmain last year. Under the agreement, Hut 8 committed to building out hosting infrastructure tailored for Bitmain’s new U3S21EXPH systems—machines that deliver 860 PH/s each. Once the buildout is complete, Hut 8 holds an option to purchase the entire hardware set.

Hut 8 had previously withheld pricing details on the deal when it was announced in September. The S-4 filing now discloses that the maximum purchase price for the 17,280 U3S21EXPH units is approximately $320 million, implying a cost of about $21/TH/s before tariffs and duties. Hut 8 retains the right to cause ABTC to acquire the full batch of machines to drive future growth.

If fully executed, this purchase path would put ABTC on track to exceed 25 EH/s in capacity—placing it among the top publicly traded Bitcoin miners globally.

Another noteworthy disclosure in the filing is ABTC’s direct production cost for the 135 BTC mined in Q1, which totaled $11.65 million (excluding depreciation and amortization), or $86,303 per BTC. This figure either reflects Hut 8’s higher-than-peer-average power and maintenance cost or is intended to bolster Hut 8’s recurring hosting revenue from ABTC as Hut 8 pivots away from proprietary mining.

However, ABTC’s growth plans may face geopolitical headwinds. The S-4 filing notes the company’s dependence on imported Bitcoin mining equipment and flags the risk of higher U.S. tariffs on mining hardware made by Chinese companies.

“While the final scope and application of recently announced changes in U.S. trade policy remains uncertain at this time, higher tariffs on imports and subsequent retaliatory tariffs could adversely impact ABTC’s ability to import equipment at levels that are cost effective,” the filing states.

It remains to be seen how a company with American in its name will adapt to such shifting geopolitical dynamics, as its whole fleet, at least for now, relies on Chinese suppliers.

This article is from Theminermag, a trade publication for the cryptocurrency mining industry, focusing on the latest news and research on institutional bitcoin mining companies. The original article can be viewed here.

Source