Bitcoin News Today: Winklevoss Twins Invest in Trump-Linked Bitcoin Mining Venture

Cameron and Tyler Winklevoss have invested in American Bitcoin Corp., a cryptocurrency mining company co-founded by Eric Trump and Donald Trump Jr., according to a Bloomberg report. This new venture combines assets from Hut 8 Corp. and a firm linked to the Trump family. The Winklevoss twins, known for their long-standing support of Bitcoin and their operation of Gemini Exchange, reportedly contributed in Bitcoin as part of a private placement [1].

The private placement reportedly raised $220 million in a mix of cash and Bitcoin, described as “oversubscribed” by Hut 8’s CEO, Asher Genoot. This funding will support American Bitcoin’s strategy of expanding its mining operations and building a strategic Bitcoin reserve [1]. Hut 8 currently holds an 80% stake in the venture, while the remaining 20% is controlled by American Data Centers, a firm backed by the Trump sons [1].

American Bitcoin has announced plans to go public through a merger with Gryphon Digital Mining Inc., a Nasdaq-listed company. The merged entity is expected to trade under the ticker symbol “ABTC” and is projected to close by early September if shareholder approval is granted. Shareholders began voting on the proposed merger this week [1]. If successful, American Bitcoin will become a publicly traded company, offering a unique combination of mining operations and a Bitcoin reserve strategy [1].

Eric Trump currently serves as the company’s chief strategy officer and is expected to see an increase in the value of his equity stake. Bloomberg previously reported that his stake could be worth as much as $367 million when the company goes public [1]. The Winklevoss twins have previously donated to Donald Trump’s campaign and have shown consistent engagement with U.S. policymakers on crypto-related issues [1].

The Winklevoss investment also signals a stronger alignment between the Trump family and the crypto community. The twins attended a crypto summit at the White House in March and were also present at the signing of recent crypto legislation [1]. Genoot, the CEO of Hut 8, emphasized that the structure of the merger is expected to provide the necessary scale and leadership to build a dominant position in the U.S. Bitcoin mining sector [1].

American Bitcoin has already begun deploying part of the $220 million raise, with $10 million in newly issued equity converted into Bitcoin. This move reflects a deeper accumulation strategy for the company [1]. Donald Trump Jr. has previously highlighted the importance of mining in the broader Bitcoin opportunity, particularly in favorable economic conditions [1].

The broader Bitcoin mining industry remains influenced by developments in China, despite its 2021 crackdown on crypto. Chinese manufacturers continue to dominate hardware supply chains, though some companies have shifted production to the U.S., contributing to the country’s rise in global hashrate [1]. The Bitcoin mining difficulty recently hit a record high of 127.6 trillion, with expectations of a slight decline in the next adjustment [1].

As American Bitcoin moves forward with its public listing, it is positioning itself as one of the most politically connected mining firms in the U.S., backed by influential figures in both the crypto and political landscapes [1].

Source:

[1] Winklevoss Twins Back Trump Brothers’ Bitcoin Mining Empire – Bloomberg

https://cryptonews.com/news/winklevoss-twins-back-trump-brothers-bitcoin-mining-empire-bloomberg/