Hut 8 Expands to Dubai: A New Era of Crypto Operations

Hut 8, a Bitcoin miner linked to the Trump family, is building a new office in Dubai, capitalizing on the city’s crypto-friendly environment.

The company, based in Miami, officially registered its expansion through the Dubai International Financial Centre last week, with a spokesperson confirming recruitment for staff to lead trading and Bitcoin hoarding operations out of the UAE.

According to Bloomberg, CEO Asher Genoot stated that the Dubai expansion will “enhance the precision and efficiency of Hut 8’s capital strategy.” Previously, the company operated mining facilities in Texas, New York, and Alberta with a workforce of 220 employees as of December.

While Genoot did not specify the headcount for the Dubai team, he emphasized the capital plan’s focus on efficiency. The free zones and zero corporate tax in Dubai provide a significant advantage, particularly as the city actively seeks to attract crypto companies to diversify its economy away from fossil fuels.

Trump Family Ties and New Ventures

In parallel with its Dubai expansion, Hut 8 is also involved in a new crypto venture with Donald Trump Jr. and Eric Trump. The brothers hold partial ownership of American Bitcoin, a newly formed company absorbing most of Hut 8’s existing mining hardware.

The objective is to take American Bitcoin public in 2025 through a merger with another listed firm, allowing Hut 8 to retain an 80% stake in the combined entity. Genoot and other Hut 8 executives will join the board of directors. Despite the overlap, a company spokesperson clarified that the Dubai initiative is unrelated to American Bitcoin, focusing solely on trading and accumulation rather than public listings or family ties.

Bitcoin Surges Amid Altcoin Decline

This expansion occurs during a challenging year for cryptocurrencies other than Bitcoin. As Bitcoin exceeds previous all-time highs, supported by a potential second Trump administration and favorable legislative environment, over $300 billion in altcoin market value has dwindled.

Many altcoins are vanishing from the market. “I think they’re just going to die, frankly,” remarked Nick Philpott, co-founder of Zodia Markets. “They’ll just wither away.” Bitcoin’s dominance in the market has surged to 64%, its highest since early 2021, leaving many altcoins struggling.

A MarketVector index tracking the lower half of the top 100 coins—initially boosted by Trump’s November 5 election win—has plummeted nearly 50% in 2025. Even Ether, the second-largest token, lags behind its all-time high.

Historically, Bitcoin’s movements have influenced altcoins, but this trend appears to have stalled. The altcoin market now resembles a wasteland of abandoned projects, particularly after the collapses of TerraUSD and FTX. The current regulatory environment, coupled with institutional investment in Bitcoin and stablecoins, has added to the challenges faced by altcoins.

Institutional money continues to flow primarily into Bitcoin, exemplified by the growth of the stablecoin market, which has gained $47 billion in the past year. Even major firms like Amazon are exploring stablecoins, undermining the notion that altcoins will drive innovation. As a result, developers are exploring mergers and governance shifts to survive.

Additionally, more companies are adopting the strategy of hoarding Bitcoin, including Twenty One Capital, which raised $4 billion in Bitcoin, and Trump Media, which is establishing its own Bitcoin treasury. While some altcoins like Maker and Hyperliquid demonstrate resilience through real-world revenue from decentralized finance projects, they remain exceptions in a landscape dominated by Bitcoin.

In summary, the big players—Hut 8, the Trumps, and institutional stakeholders—are converging around Bitcoin, reinforced by Dubai’s permissive regulations and tax benefits, establishing it as the new hub for crypto operations.