Adding to the Trump family’s growing cryptocurrency holdings, the president’s two eldest sons are investing in a bitcoin mining company.
American Bitcoin, a mining firm that is mostly controlled by Hut 8, a publicly traded crypto-infrastructure company, will combine with and acquire a 20% share from Eric Trump and Donald Trump Jr.’s American Data Centers. Together, they want to establish the biggest cryptocurrency miner in the world, with plans to establish its own “bitcoin reserve.”
In just a few months, the Trumps launched a decentralized finance (DeFi) project called World Liberty Financial, declared that their social media business would invest in bitcoin and other digital assets, introduced meme coins to take advantage of the president and his wife’s popularity, and revealed plans to issue a stablecoin backed by the World Liberty dollar. Additionally, President Trump has stated that he wants to establish the United States as the “crypto capital of the world” since taking office again.
The Trumps’ other family company, real estate, has benefited greatly from the digital networks that make up the cryptocurrency markets, Eric Trump told The Wall Street Journal.
Our family is hard-asset. Eric Trump, who will be the chief strategy officer for American Bitcoin, declared, “I’m a hard-asset guy.” “I have dedicated my entire life to building things, and I believe that the true digital assets are the best hedge against all of that.”
Eric Trump, his brother Donald Jr., and Dominari, a tiny investment business that just hired the Trump brothers as consultants, founded American Data Centers in February.
In exchange for an 80% stake in the new company, Hut 8 will transfer around 61,000 of its specialized bitcoin-mining equipment to American Bitcoin. According to the firms, no money was exchanged during the transaction.
According to Eric Trump, American Bitcoin, which intends to go public, will continue to operate independently of the Trump Organization, the family business he owns and operates. However, Eric Trump said that World Liberty, the DeFi platform he referred to as his “whole heart and soul,” would eventually work with the bitcoin mining company.
Executives at American Bitcoin stated that their intentions to mine and hoard bitcoin for their own reserve have nothing to do with the strategic crypto reserve created by President Trump earlier this month through an executive order.
“Bitcoin is still increasing in value, and there is still more than a century of mining left,” Genoot stated. “You will continue to manage through that volatility and be able to be at scale if you are the lowest-cost bitcoin miner.”
According to Eric Trump, the current drop in energy prices would help American Bitcoin miners and other miners operating in the United States.
He stated, “That is what brings bitcoiners to this nation.” Because our government genuinely wants to see affordable energy, it will put them ahead of everyone else.
American Bitcoin’s executive chairman will be Mike Ho, the chief strategy officer of Hut 8. Matt Prusak, who previously served as Hut 8’s chief commercial officer, will take over as CEO.
