Trump Brothers Team Up With Hut 8 in Bitcoin Mining Venture
The Trumps' American Data Centers will merge with Hut 8 to form American Bitcoin, with Hut 8 holding an 80% stake.
The venture aims to become the world's largest and most efficient pure-play Bitcoin miner.Bitcoin mining platform Hut 8 (HUT) and Donald Trump's sons have joined forces to launch a new firm called American Bitcoin focused exclusively on "industrial-scale Bitcoin mining and strategic Bitcoin reserve development."
Virtually all of Hut 8's Application-Specific Integrated Circuits (ASIC) miners will take a majority stake in American Data Centers, which includes Eric Trump and Donald Trump Jr. as investors. American Data Centers will be renamed American Bitcoin as part of the arrangement. The transaction will give Hut 8 an 80% stake of American Bitcoin, with the owners of American Data Centers holding the other 20%.
Hut 8 noted that the aim is for American Bitcoin is "to become the world's largest, most efficient pure-play miner while building a robust strategic Bitcoin reserve."
Eric Trump, who was named to the three-person management team as Chief Strategy Officer, said that by combining with Hut 8, "we are poised to strengthen our foundation and drive significant future growth."
Donald Trump Jr. explained that the family has believed in Bitcoin "from the start," both personally and through its businesses, but owning the cryptocurrency was "only half the story." Trump Jr. added that mining it on favorable economics "opens an even bigger opportunity."
Shares of Hut 8, which rose 4% about 30 minutes after the opening bell, have added about 11% of their value in the past year.
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