Eric Trump and Donald Trump Jr. are diving deep into the crypto sector by adding a bitcoin mining enterprise to their expanding portfolio of interests.
The eldest sons of President Donald Trump are combining their company, American Data Centers, to form a new mining operation called American Bitcoin.
The brothers will hold a 20% equity in the venture, with the other 80% being controlled by Hut 8, which handles the bitcoin mining operations.
According to The Wall Street Journal, Hut 8 is contributing approximately 61,000 mining machines from its extensive data centers to the new company in return for its ownership stake.
American Data Centers was established in February by the Trump brothers along with Dominari, a small investment firm that leases space in Trump Tower.
American Bitcoin marks the third significant crypto venture launched by the Trump family in the last year, raising concerns over potential conflicts of interest since the onset of the second Trump administration.
During the election campaign, the brothers introduced World Liberty Financial, which offers two forms of digital currency.
On the eve of his presidential inauguration, Trump unveiled the $TRUMP meme coin, which was largely overlooked by Republicans.
So, what new venture are the Trump brothers embarking on?
In simple terms, cryptocurrency is digital currency designed to operate through an online network without a central governing authority.
Bitcoin, the most prominent and oldest cryptocurrency, has seen other assets like Ethereum, Tether, and Elon Musk’s Dogecoin rise in popularity in recent times.
Bitcoin is generated through an energy-intensive procedure known as “mining,” where computer servers solve intricate equations to release new tokens.
Eric Trump, who will act as Chief Strategy Officer for American Bitcoin, informed the Journal that fully committing to digital currency serves as a solid “hedge” against the real estate investments that have made the Trump family renowned.
He mentioned intentions to establish a “bitcoin reserve” and potentially take the company public.
American Bitcoin will operate as an independent entity from the Trump Organization, the family’s real estate dynasty.
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In a press statement, Donald Trump Jr. expressed their enduring “faith in bitcoin,” stating that “mining it on favorable terms presents an even greater opportunity.”
After the GOP candidate indicated a more lenient regulatory stance towards the industry during the campaign, cryptocurrency values soared to unprecedented heights following Trump’s second electoral victory.
However, like the broader Wall Street environment, crypto prices have receded amid concerns, among other issues, about Trump’s trade policies reigniting inflation.
