Trump family ventures into Bitcoin mining with new investment
What's the story
The Trump family's entry into the cryptocurrency space continues to grow, with Eric Trump and Donald Trump Jr. now investing in a Bitcoin mining company, according to The Wall Street Journal.
Their firm, American Data Centers, is merging with and acquiring a 20% stake in American Bitcoin, a mining company largely owned by Hut 8.
The goal of the partnership is to build the world's largest digital currency miner and form its own "Bitcoin reserve."
Crypto portfolio
Trump family's diverse cryptocurrency ventures
The Trump family's cryptocurrency ventures aren't limited to Bitcoin mining. They have also launched World Liberty Financial, a decentralized finance (DeFi) project.
Their social media company has announced plans to invest in Bitcoin and other digital assets, and introduced meme coins inspired by the popularity of Donald Trump's family.
Additionally, they plan to issue a World Liberty dollar-backed stablecoin as part of their strategy.
Hard assets
Eric Trump emphasizes family's focus on hard assets
Eric Trump, who will be the chief strategy officer for American Bitcoin, highlighted his family's emphasis on hard assets.
"We are a hard-asset family. I'm a hard-asset guy... I don't think there is ever a better hedge against all of that than the true digital assets," he said.
This shows their dedication toward investing in tangible resources and digital currencies such as Bitcoin.
Partnership details
Hut 8 transfers Bitcoin mining machines to American Bitcoin
Hut 8 will transfer some 61,000 of its specialized Bitcoin mining machines to American Bitcoin in return for an 80% stake in the new entity.
Eric clarified that while American Bitcoin plans to go public, it will operate independently from the Trump Organization, the family real-estate empire he runs.
He also hinted at potential future collaboration between World Liberty and the bitcoin-mining operation.
Market strategy
Hut 8's CEO highlights American Bitcoin's competitive edge
Asher Genoot, Hut 8's CEO, emphasized that the company's capability to secure cheap energy and establish low-cost data centers will be what sets American Bitcoin apart from its rivals.
"There is still 100-plus years of bitcoin mining left, and bitcoin continues to appreciate... Being the lowest-cost bitcoin miner is how you will continue to manage through that volatility and being able to be at scale," he said.