Bitcoin Mining Firm Backed by Trump Family Acquires $23 Million Worth of BTC

American Bitcoin, backed by Eric Trump and Donald Trump Jr., has acquired $23.57 million worth of BTC. The company plans to continue accumulating Bitcoin and aims to increase its reserve per share. This move is part of the Trump family's growing interest in cryptocurrency, with Donald Trump Jr. stating they are "seriously long" on Bitcoin.

American Bitcoin, a mining company backed by President Donald Trump's two eldest sons, Eric Trump and Donald Trump Jr., has acquired $23.57 million worth of Bitcoin (BTC) since its founding in April this year. The company, formally known as ABTC, has announced plans to continue accumulating Bitcoin and aims to increase its reserve per share [1].

In a filing submitted to the Securities and Exchange Commission (SEC), American Bitcoin stated that Bitcoin accumulation is not a side effect of its business but the core of its strategy. The company views Bitcoin as a long-term asset and intends to transform its Bitcoin production into long-term ownership through a Layer 2 strategy [1].

American Bitcoin operates a cost-efficient mining operation, investing directly in mining rather than physical infrastructure. The company owns over 60,000 miners, primarily from Bitmain and MicroBT, deployed across three Hut 8-managed facilities in New York, Alberta, and Texas. These miners operate at a combined hashrate of 10.17 exahashes per second and average efficiency of 21.2 joules per terahash [1].

The company's Bitcoin reserves are stored with Coinbase Custody in cold wallets, applying multifactor authentication and whitelisted withdrawal protocols to enhance security [1]. American Bitcoin's goal is to utilize public markets and strategic financing structures to access efficient capital and leverage that capital to increase its Bitcoin in reserve per share [1].

The company's three-tiered strategy includes building a cost-efficient mining operation, leveraging capital to grow its BTC reserves, and playing an active role in Bitcoin's broader ecosystem [1]. American Bitcoin also plans to go public via a merger with Gryphon Digital Mining, which will be structured as a stock-for-stock transaction. Eric Trump will sit on the company's board following the merger, and Hut 8 will retain a management role post-merger [1].

Donald Trump Jr. has distanced himself from the $TRUMP meme coin, stating that the family's move into crypto was due to being 'debanked' by traditional banks after his father entered politics. The family's crypto activities have drawn ethics concerns and calls for probes, but Trump Jr. argues that blockchain anonymity makes exploitation harder [3].

The Trump family's growing interest in cryptocurrency includes the USD1 stablecoin through World Liberty Finance, which Trump Jr. positioned as supporting U.S. financial dominance by purchasing Treasury bonds [3].

References:
[1] https://www.cryptopolitan.com/american-bitcoin-has-215-btc-worth-over-23m/
[2] https://cointelegraph.com/news/eric-trumps-american-bitcoin-hits-215-btc-reserve
[3] https://timesofindia.indiatimes.com/technology/tech-news/donald-trump-jr-says-wasnt-involved-with-trump-meme-coin-that-donald-trump-threw-gala-dinner-for/articleshow/121624775.cms