Clear Street Highlights That Bitcoin Miner Hut 8 Could Be Eyeing a Hyperscaler Acquisition.

Hut 8 Mining Partners with Trump Family to Launch American Bitcoin, Eyes Expansion in Data Centers

Hut 8 Mining (HUT) is exploring the possibility of spinning off its newly established subsidiary, American Bitcoin Corp., in a strategic move to focus on data center hosting, according to Clear Street’s latest report. This venture, which combines Hut 8’s mining operations with the Trump family’s involvement, could allow the company to streamline its business model and concentrate on high-margin data center services while maintaining its commitment to the bitcoin mining sector.

Clear Street noted that American Bitcoin Corp. will initially be included in Hut 8’s financial statements, but the businesses may eventually be separated to allow Hut 8 to prioritize the growth of its data center hosting revenue. The report emphasized the potential for Hut 8 to form partnerships with hyperscalers—large-scale cloud computing companies—which could become a key driver of the company’s growth.

The partnership between Hut 8 and the Trump family involves a 20% stake in American Bitcoin for Eric Trump and Donald Trump Jr. through their firm, American Data Centers. Hut 8 will retain 80% ownership, contributing nearly 61,000 mining rigs to the new entity. This venture mirrors similar moves in the sector, such as Core Scientific’s (CORZ) collaboration with cloud computing firm CoreWeave, which sparked a sector-wide reevaluation of the potential for bitcoin miners to integrate with artificial intelligence and high-performance computing.

The Clear Street report suggests that Hut 8 is poised for significant growth in the second half of the year, driven by the activation of its BITMAIN Colocation agreement. Hut 8 shares saw a modest increase, rising over 4% to $12.10 in early trading, and Clear Street maintains a buy rating on the stock with a $23 price target.

KBW, an investment bank, has also expressed optimism about Hut 8, issuing an outperform rating with a $30 price target. They highlighted Eric Trump’s role as Chief Strategy Officer of American Bitcoin as a strong asset, noting his deep commitment to the industry and extensive relationships in the sector.

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