Trump Family Expands Crypto Push With New Bitcoin Mining Venture
- The Trump family expands its crypto involvement with Bitcoin mining.
- Hut 8 owns 80%, supplying mining machines and hosting operations.
The Trump family is deepening its involvement in cryptocurrency with a major move into Bitcoin mining. Eric Trump and Donald Trump Jr. have partnered with Hut 8 to launch American Bitcoin, a large-scale U.S.-based mining firm.
Hut 8, a publicly traded crypto infrastructure company, will control 80% of American Bitcoin. It will supply nearly 61,000 mining machines and host operations across its 11 U.S. data centers. Eric Trump and Donald Trump Jr.s company, American Data Centers, will merge with the new venture, holding a 20% stake. No cash was exchanged in the deal, according to Hut 8s press release.
Eric Trump, serving as chief strategy officer, sees the venture as part of the familys focus on hard assets. He plans to build a Bitcoin reserve and potentially take American Bitcoin public. The company will be led by Matt Prusak, Hut 8s former chief commercial officer.
The venture follows the Trumps growing crypto footprint. Alongside Bitcoin mining, they have backed projects like World Liberty Financial, memecoins, and a planned stablecoin. President Donald Trump has also positioned himself as the crypto president, pledging to support the industry.
How Will American Bitcoin Compete in Mining?
Despite environmental concerns over Bitcoin mining, Eric Trump argues that lower U.S. energy costs will make American Bitcoin competitive globally. Hut 8 CEO Asher Genoot emphasized the firms scalable infrastructure and cost-efficient energy strategy.
The American Bitcoin board will include Tinder co-founder Justin Mateen and FabFitFun co-founder Michael Broukhim. The Trump family will not handle day-to-day mining operations. Hut 8 will manage core business functions, including finance, compliance, and human resources.
Hut 8s stock initially surged in premarket trading after the announcement but later settled at $11.69. The company has faced a 42.8% decline in stock value this year.
Donald Trump Jr. highlighted the advantages of mining over simply buying Bitcoin. He believes favorable mining economics create a larger opportunity. The company aims to establish itself as a major player in Bitcoin mining while expanding its Bitcoin holdings.
American Bitcoins long-term goal is a public listing to attract capital. After his re-election, he issued executive orders supporting Bitcoin and digital assets. Hut 8 will hold a conference call on Tuesday to discuss the venture.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
