This Crypto Stock is Bucking Today’s Selloff After a Big Trump Boost

Cryptocurrencies and crypto-related stocks are joining in a broader-market selloff today, with uncertainty around potential new tariffs weighing on the technology sector as a whole. The decline in digital assets is particularly notable as it comes against the backdrop of what analysts consider a largely crypto-friendly Trump administration, with firms like Bernstein remaining optimistic about the sector's long-term prospects. 

But looking at the industry trend, crypto-related stocks have been under pressure throughout early 2025, with many showing significant year-to-date declines. That includes leading crypto exchange Coinbase's (COIN) 33.7% collapse, suggesting today's weakness is part of a larger correction in the sector.

However, at least one crypto stock is on the upswing in today’s early action, with Hut 8 (HUT) catching a very direct boost from its Trump family connections.

Hut 8 Partners with the Trump Brothers

HUT stock caught a boost this Monday on news of a strategic partnership between Hut 8 and American Data Centers, Inc., a venture backed by Donald Trump, Jr., and Eric Trump. Under the terms of the pact, American Data Centers will be renamed and relaunched as American Bitcoin, with Eric Trump as Chief Strategy Officer and the Trump venture holding a 20% stake. Hut 8 will contribute its ASIC mining operations in exchange for the remaining 80% ownership stake, positioning the company as the exclusive infrastructure and operations partner through long-term commercial agreements. 

The newly formed American Bitcoin has set ambitious targets, aiming to achieve a computing capacity exceeding 50 exahashes per second while maintaining exceptional fleet efficiency under 15 joules per terahash. Along with Eric Trump’s C-suite role, the leadership structure includes Matt Prusak as CEO and Mike Ho as Executive Chairman, combining their expertise in commercial operations, capital markets, and mining infrastructure. This strategic restructuring enables Hut 8 to carve out its mining business into a standalone entity, effectively aligning each business segment with its respective cost of capital.

The partnership is expected to generate stable revenue streams for Hut 8's Power and Digital Infrastructure segments, with the new venture's results set to be consolidated within financial statements under the Compute segment. Looking ahead, American Bitcoin's longer-term aspirations to become publicly listed could significantly expand its access to capital markets and strengthen its competitive position. 

Hut 8 Stock is Still Underperforming

Despite a generally bearish bias in today’s session, the market has responded favorably to this development, with HUT stock up more than 2% this morning. However, like its crypto peers, Hut 8 has underperformed in 2025, and is still down 42.7% on a year-to-date basis. The stock’s momentum today is stalling out near its overhead 20-day moving average.