The Trump family is venturing into the Bitcoin (BTC) mining industry by founding a new company called American Bitcoin.
As per a recent announcement made on March 31, Eric Trump and Donald Trump Jr. have collaborated with a publicly traded crypto infrastructure company to establish American Bitcoin. Eric and Donald Jr. will hold a 20% stake in the venture, while the remaining 80% will be owned by their partner.
The company will initially concentrate on mining activities. Looking ahead, there are plans to create a strategic reserve of Bitcoin and possibly pursue a public offering.
“From the very beginning, we’ve shown our support for Bitcoin—both personally and through our business endeavors,” stated Donald Trump Jr. “However, merely purchasing Bitcoin is just part of the equation. Mining it with favorable economics presents an even greater opportunity.”
This initiative marks a significant step in the Trump family’s increasing engagement with the cryptocurrency sector, which also encompasses other ventures like World Liberty Financial and discussions around a potential stablecoin.
In light of ongoing concerns regarding the environmental impact of Bitcoin mining, Eric Trump, who will take on the role of chief strategy officer for the company, expressed confidence that the lower energy costs in the United States will provide American miners with a global competitive advantage. Asher Genoot, the CEO of their partnered firm, highlighted that American Bitcoin’s edge will derive from its low energy expenses and scalable infrastructure.
In exchange for its 80% ownership of American Bitcoin, the partner company will provide 61,000 mining machines and manage the operations across 11 data centers in the U.S. Following the announcement, stock shares in the partnered firm saw a 6.4% increase, although they remain down by 42.8% for the year.
Addressing the collaboration, Asher Genoot remarked:
“By establishing our mining operations as a standalone entity that will seek its own funding, we are aligning each component of our business with its specific cost of capital. This transaction allows us to create two focused yet complementary operations, each designed for its distinct objectives. It advances our firm toward more predictable, financeable segments with lower costs of capital and positions American Bitcoin as a dedicated mining platform focused on exahash growth, Bitcoin production, and operational efficiency.”