Trump Family Enters Bitcoin Mining with 61,000 Machines

The Trump family has expanded its involvement in the cryptocurrency sector by entering the Bitcoin mining industry with a new venture called American Bitcoin. This move involves Eric Trump and Donald Trump Jr., who are merging their firm, American Data Centers, with a new mining venture called American Bitcoin. American Data Centers will take a 20% stake in the company, while the remaining 80% will be owned by Hut 8, a publicly traded crypto infrastructure firm. Hut 8 is contributing nearly 61,000 mining machines to the new entity, and no cash changed hands in the deal.

Eric Trump, who will serve as American Bitcoin’s chief strategy officer, described the initiative as aligned with the family’s focus on hard assets, likening digital currencies to real estate. He emphasized plans to build a “bitcoin reserve” and potentially take the company public. Although American Bitcoin is separate from the Trump Organization, it may eventually collaborate with World Liberty Financial—the DeFi project launched by the Trump brothers.

Hut 8 will host the mining operations in its 11 U.S. data centers. The CEO of Hut 8, Asher Genoot, stated that low energy costs and scalable infrastructure will give American Bitcoin a competitive edge. The board of directors will include Tinder co-founder Justin Mateen and FabFitFun co-founder Michael Broukhim. Despite criticism over bitcoin mining’s environmental impact, Eric Trump believes lower U.S. energy costs will help American miners outpace global competitors.

This strategic partnership involves American Data Centers taking a 20% stake in American Bitcoin, while Hut 8 maintains an 80% ownership stake. The venture aims to become a global leader in Bitcoin mining by leveraging Hut 8's extensive mining hardware and operational expertise. The new entity, American Bitcoin, will focus on large-scale Bitcoin mining and strategic Bitcoin reserve development. This move follows Hut 8's strategic contribution of substantially all of its ASIC miners to American Data Centers in exchange for a majority interest. The leadership team of American Bitcoin includes Mike Ho as Executive Chairman, Matt Prusak as CEO, and Eric Trump as Chief Strategy Officer. The Board of Directors features Mike Ho, Asher Genoot, Justin Mateen, and Michael Broukhim.

Hut 8 will continue to handle ASIC colocation and management services for American Bitcoin through a shared services agreement. This partnership is expected to drive substantial growth by combining Hut 8’s operational expertise with a shared vision for Bitcoin’s future. Eric Trump highlighted the significance of this partnership, stating that it represents a major step forward in the Bitcoin mining industry. Donald Trump Jr. emphasized the economic advantages of mining Bitcoin, noting that it opens up even bigger opportunities compared to simply buying the cryptocurrency.

The creation of American Bitcoin as a standalone entity allows each segment to operate with its own financial structure, driving growth and making capital allocation more efficient. This approach will result in two distinct yet complementary businesses: Hut 8 focusing on infrastructure and American Bitcoin dedicated to mining and building its Bitcoin reserves. The company has released a presentation with additional transaction details and will file a Form 8-K with the SEC. A conference call is scheduled to provide further insights into the venture.