Miner Weekly: US Bitcoin's 25 EH/s Dream Is Based on Chinese Hardware
This article first appeared in Miner Weekly, Blocksbridge Consulting's weekly newsletter covering the latest developments in the world of Bitcoin mining and analysis from Theminermag.
American Bitcoin Corp (ABTC), the new private bitcoin mining company spun out of Hut 8 and backed by Eric Trump and Donald Trump Jr., is taking final shape and preparing to go public.
The company recently filed an S-4 filing as part of its merger with Gryphon Digital, providing new insight into its financials, mining strategy, and reliance on Chinese-made hardware in its quest to expand its hashrate to 25 EH/s.
ABTC officially launched on April 1, 2025, and is a means by which Hut 8 is spinning off its independent mining business, allowing the parent company to focus on its power and data center infrastructure. The filing helps explain why Hut 8 stopped publishing monthly Bitcoin mining reports as of April.
In Q1 2025, ABTC mined 135 BTC, which is the same as Hut 8 mined in its own operations (excluding its stake in joint ventures) before the split. As of May 31, ABTC had approximately 215 BTC in stock.
ABTC currently has 10.17 EH/s of hashrate installed across Hut 8 facilities powered by Bitmain’s S21 series miners and MicroBT’s M5X and M6X series miners. However, its most ambitious source of growth comes from a 15 EH/s hosting agreement that Hut 8 initially entered into with Bitmain last year. Under this agreement, Hut 8 committed to building a hosting infrastructure tailored to Bitmain’s new U3S21EXPH machines, devices that each deliver 860 PH/s. Once the build is complete, Hut 8 will have the option to purchase the entire set of equipment.
Hut 8 had previously kept the price of the deal under wraps when it was announced in September. The S-4 filing now lists the maximum purchase price for the 17,280 U3S21EXPH units at about $320 million, implying a price of about $21/TH/s before duties and fees. Hut 8 reserves the right to force ABTC to purchase the entire fleet to fuel future growth.
If this acquisition scheme is fully implemented, ABTC's throughput will exceed 25 EH/s, making it one of the largest publicly traded Bitcoin mining companies in the world.
Another important point in the filing is ABTC’s direct production cost for the 135 BTC mined in Q1, which was $11.65 million (excluding depreciation and amortization), or $86,303 per BTC. This figure may reflect Hut 8’s higher electricity and maintenance costs compared to its competitors, or may be intended to support Hut 8’s steady revenue from hosting ABTC as Hut 8 phases out its own mining operations.
However, ABTC’s expansion plans could face geopolitical challenges. The S-4 filing highlights the company’s reliance on imported Bitcoin mining equipment and points to the risk of higher U.S. tariffs on equipment made by Chinese companies.
“While the final scope and application of recently announced changes to U.S. trade policy remain uncertain, higher import duties and subsequent retaliatory measures could negatively impact ABTC's ability to import equipment on economically viable terms,” the statement said.
It remains unclear how the American-named company will adapt to such a volatile geopolitical environment, as its entire fleet, at least for now, relies on Chinese suppliers.
This article from Theminermag, a specialized publication for the cryptocurrency mining industry, is dedicated to the latest news and research materials from institutional Bitcoin mining companies. You can read the original article here.
Source: cryptonews.net
