Trump Brothers, Hut 8 Launch American Bitcoin Venture

Eric Trump and Donald Trump Jr. have invested in a new venture, American Bitcoin Corporation, which was previously known as American Data Centres. This new company has acquired ASIC miners from Hut 8, a publicly traded company. American Bitcoin will concentrate on the mining aspect of the business, while Hut 8 will handle the management and operational side. Additionally, American Bitcoin plans to invest in a Bitcoin treasury. Hut 8 will retain an 80% stake in American Bitcoin.

Hut 8 has contributed approximately 61,000 mining machines to the new venture, with no cash transfers required between the two entities. Hut 8 will manage the physical locations for the crypto mining venture, owning 11 sites across the country. American Bitcoin will operate the mining rigs, benefiting from low energy costs and scalable locations. The board of directors will include Justin Mateen, co-founder of Tinder, and Michael Broukhim, co-founder of FabFitFun. Eric Trump is optimistic about the business's success, citing the advantage of lower energy costs.

Eric Trump expressed confidence in the venture, stating, “By combining Hut 8’s proven operational excellence in data centers with our shared passion for Bitcoin and decentralized finance, we are poised to strengthen our foundation and drive significant future growth.” American Bitcoin, a subsidiary of Hut 8, aims to become the world’s largest and most efficient Bitcoin mining company. The business believes its success will be driven by the combination of Hut 8’s ASIC miners and the Trump brothers’ investments, connections, and influence.

Eric Trump will serve as the Chief Strategy Officer of American Bitcoin. Hut 8 will handle long-term agreements and the financial aspects of the business. American Bitcoin plans to become a publicly listed company in the future. Asher Genoot, Hut 8 CEO, commented on the launch, stating, “The launch of American Bitcoin marks a pivotal evolution in our platform strategy. By carving out our mining business into a standalone entity, which will raise its capital, we align each business segment with its respective cost of capital. The transaction creates two focused yet complementary businesses, each purpose-built for its mandate. It evolves Hut 8 toward more predictable, financeable, lower-cost-of-capital segments. It establishes American Bitcoin as a pure-play mining platform built for hash growth, Bitcoin production, and operating leverage.”

American Bitcoin is a joint venture between the Trump family and Hut 8, aiming to become the most efficient ‘pure play’ Bitcoin miner globally. Eric Trump’s experience in commercial markets and Hut 8’s operational expertise make this partnership promising for the American crypto market. Meanwhile, Mara Holdings, a competitor of Hut 8, announced a $2 billion stock offering as part of its Bitcoin strategy. Mara, one of the largest Bitcoin mining companies in the U.S., has shifted to a treasury strategy due to the disruption caused by the Bitcoin halving. It remains to be seen whether Eric Trump has considered the challenges of creating a mining business post-Bitcoin halving.

President Trump has established a Strategic Bitcoin Reserve and ended the ‘war on crypto,’ creating a favorable climate for American Bitcoin. The venture may benefit from the family ties between the Trump brothers and President Trump, potentially aligning with the broader pro-crypto policies of the administration. The success of American Bitcoin will depend on its ability to leverage low energy costs, scalable locations, and the strategic advantages provided by the Trump family’s influence and connections.