Thermoanaerobacter uzonensis strain AK85 belongs to the Thermoanaerobacter genus, which comprises rod-shaped, Gram-positive, thermophilic, obligate anaerobic bacteria. Members of this genus exhibit unique fermentation qualities, such as prolific ethanol production, and can generate longer-chain alcohols from carbohydrate and amino acid sources. Here we present the draft genome sequence of Thermoanaerobacter uzonensis strain AK85, which was previously isolated from a hot spring in Graensdalur in Southwestern Iceland. The genome was sequenced with a 150 bp paired-end library on a MGISEQ-2000. The assembled genome comprises 2,577,794 bp and a GC ratio of 33.69 %. With an ANI of 96.9 % strain AK85 was determined to be a strain of Thermoanaerobacter uzonensis. Annotation was conducted with Prokka which revealed 41 enzymes related to carbohydrate, amino acid, and carboxylic acid metabolism. The genomic dataset establishes the biotechnological capacity and potential of strain AK85 for the production of alcohols and other bio-manufactured products. Further, the genomic dataset is coupled with a cofactor and substrate analysis of the three detected alcohol dehydrogenases. These enzymes were assessed via a lysate based colorimetric assay with NAD⁺ and NADP⁺. Under these conditions the native alcohol dehydrogenases are able to oxidize long chain primary alcohols such as 1-octanol and benzyl alcohol. The reads and assembled draft genome of AK85 were deposited into SRA and NCBI under Bioproject PRJNA1108289, Genbank JBDHNK000000000, and Biosample SAMN41233939.