Trump Family Ventures Into Crypto: Launch of American Bitcoin and Strategic Mining Plans
Trump Family Ventures Into Crypto – Donald Trump Jr. and Eric Trump have partnered with Hut 8, one of the largest Bitcoin mining companies, to create American Bitcoin, a new industrial-scale mining firm. Announced on March 31, this venture aims to become the “world’s largest and most efficient Bitcoin miner.” The deal sees Hut 8 contribute the majority of its mining hardware to American Data Centers Inc., which is backed by the Trump sons. The company was rebranded to American Bitcoin, with Hut 8 maintaining an 80% ownership stake in the newly formed subsidiary.
Strategic Shift: Hut 8 Divides Operations
This partnership marks a significant shift for Hut 8, which is now separating its mining operations into a standalone entity, while continuing to serve as an exclusive infrastructure and operations partner for the new firm. Donald Trump Jr. emphasized, “Mining Bitcoin on favorable economics opens an even bigger opportunity” than just buying the asset. He also reiterated the Trump family’s strong backing of Bitcoin, both personally and through their businesses.
Bitcoin Holdings and Market Impact
The new firm, American Bitcoin, will operate independently under the Hut 8 umbrella but will remain part of Hut 8’s financial reporting. As of now, Hut 8 holds over 10,000 BTC, valued at over $865 million, making it the fifth-largest corporate holder of Bitcoin globally, according to Bitcoin Treasuries. However, the broader Bitcoin market remains volatile, with Bitcoin’s price dipping 0.2% to $82,815 recently, and mining fees at their lowest share of block rewards since 2022.
Hut 8 Stock Surge and Broader Trump Family Crypto Moves
Following the announcement, Hut 8’s stock saw an 8.36% increase in pre-market trading. Despite a 42.80% drop in the stock’s price for the year, the new partnership marks a deeper commitment to the growing crypto sector from the Trump family. In addition to American Bitcoin, the family has recently launched a memecoin, a stablecoin on Ethereum and Binance’s BNB Chain, and a crypto reserve strategy under President Trump’s leadership.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
Leave a comment