Hut 8, a publicly traded Bitcoin (BTC) mining company with a market capitalization of approximately $1.2 billion, announced on Monday a strategic partnership with Eric Trump and Donald Trump Jr. to establish a new mining subsidiary named American Bitcoin.
Hut 8 And Trump Sons Unite To Form American Bitcoin
According to the press release, Hut 8 will contribute “substantially all” of its BTC ASICs (Application-Specific Integrated Circuits), which are specially designed computer chips used for mining Bitcoin, in exchange for an 80% equity stake in the new venture.
Eric Trump will serve as the co-founder and chief strategy officer of the new crypto venture, while Matt Prusak, the former chief commercial officer of Hut 8, will take on the role of CEO. In addition, Justin Mateen, co-founder of the dating app Tinder, will join the board alongside two other Hut 8 executives.
In his statement, Donald Trump Jr. emphasized the importance of Bitcoin mining, noting, “Simply buying Bitcoin is only half the story. Mining it on favorable economics opens an even bigger opportunity.” President Donald Trump’s eldest son further noted:
From the start, we’ve backed our conviction in Bitcoin—personally and through our businesses… We’re excited to bring investors into that equation through a platform engineered to execute on this thesis and deliver real, tangible participation in Bitcoin’s growth.
For context, BTC mining involves the use of high-powered computers to solve complex mathematical problems, with the first miner to find a solution receiving a reward in Bitcoin. This process is essential for processing transactions and updating the blockchain, with new blocks added approximately every ten minutes.
Trump’s Shift On Crypto
The goal for American Bitcoin reportedly intends to eventually become publicly listed in the United States, as outlined in a presentation filed with the US Securities and Exchange Commission (SEC).
The move is in line with a broader trend in the crypto industry, where many companies, such as crypto exchanges, are seeking initial public offerings (IPOs) to capitalize on the growing interest in digital assets.
The Trump family’s foray into the cryptocurrency space is relatively recent. Previously, President Trump had been critical of BTC, labeling it a “scam against the dollar.”
However, President Donald Trump’s stance appears to have shifted dramatically in light of the growing interest and financial support from influential figures in the crypto world.
Following Trump’s participation in the national Bitcoin 2024 in Nashville, one of the largest Bitcoin conferences globally, Trump has continuously called for the US to become the “crypto capital of the planet.”
This pivot is further reflected in the Trump family’s involvement in various crypto initiatives, including non-fungible token (NFT) collections and a new stablecoin project called USD1, which is being developed by World Liberty Financial (WLFI).
At the time of writing, BTC trades at $82,825, recording a slight 0.8% recovery in the 24-hour time frame.
Featured image from DALL-E, chart from TradingView.com
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