Hut 8, a publicly listed Bitcoin (BTC) mining company with a valuation of around $1.2 billion, announced a strategic alliance with Eric Trump and Donald Trump Jr. on Monday to create a new mining subsidiary called American Bitcoin.
Hut 8 Joins Forces with Trump Sons to Launch American Bitcoin
As per the press release, Hut 8 will provide “nearly all” of its BTC ASICs (Application-Specific Integrated Circuits), which are specialized chips for mining Bitcoin, in exchange for an 80% equity interest in this new venture.
Eric Trump will act as co-founder and chief strategy officer for the new cryptocurrency initiative, while Matt Prusak, the former chief commercial officer of Hut 8, will assume the position of CEO. Additionally, Justin Mateen, co-founder of the dating platform Tinder, will be appointed to the board along with two other Hut 8 executives.
In a statement, Donald Trump Jr. highlighted the significance of Bitcoin mining, stating, “Merely purchasing Bitcoin is only part of the equation. Mining it under favorable economic conditions presents an even greater opportunity.” The eldest son of former President Donald Trump elaborated:
From the beginning, we’ve supported our belief in Bitcoin—both personally and through our businesses… We’re enthusiastic about bringing investors into that equation through a platform designed to capitalize on this thesis and offer real, meaningful participation in Bitcoin’s expansion.
For context, BTC mining utilizes powerful computers to solve intricate mathematical puzzles, with the first miner to discover a solution earning a reward in Bitcoin. This procedure is crucial for facilitating transactions and updating the blockchain, with fresh blocks added roughly every ten minutes.
Trump’s Evolving Perspective on Crypto
The objective for American Bitcoin reportedly aims to eventually be publicly traded in the United States, as outlined in a presentation submitted to the US Securities and Exchange Commission (SEC).
This initiative aligns with a larger trend in the cryptocurrency sector, where numerous companies, including crypto exchanges, are pursuing initial public offerings (IPOs) to leverage the surging interest in digital assets.
The Trump family’s entry into the cryptocurrency arena is a relatively modern development. Previously, President Trump was critical of BTC, describing it as a “scam against the dollar.”
However, President Donald Trump’s viewpoint seems to have shifted considerably given the increasing interest and financial backing from prominent figures in the crypto space.
Following Trump’s participation in the national Bitcoin 2024 event in Nashville, one of the largest Bitcoin conferences globally, he has persistently advocated for the US to become the “crypto capital of the world.”
This transition is also evident in the Trump family’s involvement in various cryptocurrency projects, including non-fungible token (NFT) collections and a new stablecoin initiative named USD1, currently being developed by World Liberty Financial (WLFI).
As of this writing, BTC is valued at $82,825, reflecting a modest recovery of 0.8% within the past 24 hours.
Featured image from DALL-E, chart from TradingView.com
Editorial Process at bitcoinist focuses on providing well-researched, accurate, and impartial content. We adhere to stringent sourcing standards, with every page undergoing thorough review by our team of top technology experts and experienced editors. This procedure ensures the integrity, relevance, and value of our material for our readers.
