Latest news with #AmericanDataCenters
Indian Express
13-05-2025
- Business
- Indian Express
What is American Bitcoin, the Trump family-backed crypto mining firm going public?
A bitcoin mining venture with ties to US President Donald Trump's family announced on Monday, May 12, that it is all set to become a publicly traded company. American Bitcoin, a cryptocurrency firm backed by President Trump's sons Eric Trump and Donald Trump Jr, is expected to be listed on the Nasdaq after its all-stock merger with Gryphon Digital Mining that is set to close by the third quarter of 2025. The merged entity will trade under the symbol 'ABTC', according to a report by CNBC. The US president's two eldest sons will own about 98 per cent of the new entity along with existing shareholders of American Bitcoin. The other 2 per cent will belong to existing shareholders of Gryphon. Eric Trump is also listed as a co-founder and member of the management team at American Bitcoin. Taking American Bitcoin public is the latest move by the Trump family to expand its crypto empire. Experts have warned that these growing crypto ventures could lead to overt conflicts of interest within the Trump administration. For instance, American Bitcoin could become a vehicle for investors looking to curry favour from President Trump. It also comes as Trump is facing backlash for planning to receive a luxury jumbo jet from Qatar to be used as the official US presidential plane, Air Force One. However, the company has said that existing shareholders of American Bitcoin will own a majority stake. Meanwhile, the announcement did not elicit much of a reaction in the crypto market as bitcoin continued to trade flat at around $104,000, according to CoinMarketCap. In February this year, investment firm Dominari Holdings announced the creation of a new venture called American Data Centers to develop computing infrastructure for the AI industry. Both Eric Trump and Donald Trump Jr are investors of American Data Centers, while Eric Trump is a member of the advisory board of Dominari Holdings. Then, the two Trumps partnered with an energy infrastructure company called Hut 8 to establish a new venture called American Bitcoin, with the more immediate objective of creating a large stockpile of cryptocurrency by mining bitcoins. 'Every single sophisticated country is using their excess power to mine bitcoin […] We won the space race. We better win the crypto race,' Eric Trump was quoted as saying by CNBC. 'From the start, we've backed our conviction in Bitcoin, personally and through our businesses. But simply buying Bitcoin is only half the story. Mining it on favorable economics opens an even bigger opportunity,' Donald Trump Jr was quoted as saying by The New York Times. The terms of the deal dictated that Hut 8 would control 80 per cent of American Bitcoin while the 20 per cent stake would belong to Trump-backed American Data Centers. The initial announcement also named Eric Trump as a co-founder of American Bitcoin and said he would serve as the chief strategy officer of the new crypto mining venture. Graphon Digital Mining is now acquiring American Bitcoin via a reverse triangular merger in a 100 per cent stock-for-stock transaction, according to an investor presentation posted on its website. The proposed merger carves out American Bitcoin from Hut 8′s broader energy and AI infrastructure platform in order to separate the bitcoin mining operations and potentially unlock new capital, as per CNBC. Graphon Digital Mining is a US-based venture that aims to establish a presence in bitcoin mining as well as AI by investing in data centres and low-cost energy assets. 'The Gryphon team is pleased to offer our stockholders the opportunity to participate in what we believe will be the next era of public Bitcoin mining through this combination. American Bitcoin brings together an outstanding leadership team and a clear strategy to build a premier institution in this fast-evolving industry,' Steve Gutterman, Chief Executive Officer of Gryphon, said. 'Taking American Bitcoin public is a critical step toward scaling the business at the pace and magnitude we envision. Time-to-market was a critical factor, and this transaction enables an efficient path to public markets by combining with an entity that is structurally aligned with American Bitcoin's mining-focused launch strategy,' Asher Genoot, CEO of Hut, said. While fiat currency is printed by a central bank, new bitcoins are generated by verifying transactions on the blockchain. This process is known as bitcoin mining. It is a branch of the crypto industry and requires large amounts of energy that are consumed by mining machines to process bitcoin transactions. Bitcoin mining is also one of the most criticised features of the crypto industry as it is energy-intensive. In the early days of cryptocurrency, bitcoin transactions could be processed and verified by anyone capable of running a computer programme. In return, they earned new bitcoins as a reward. However, when there was a boom in the crypto industry, the amount of computing power required for mining bitcoins also surged. Today, the process of mining bitcoins is carried out by publicly traded companies like Hut 8 which owns several data centres packed with servers. These operations are considered to be harmful for the environment as each bitcoin transaction is said to generate carbon emissions equivalent to driving a gasoline-powered car between 1,600 and 2,600 kilometres, according to a report by the London School of Economics. Bitcoin mining farms have also been linked to an increase in noise pollution. During his presidential campaign, Donald Trump and his sons launched a crypto company called World Liberty Financial that offers two types of digital currencies. It has launched so-called governance tokens with the symbol WLFI. Governance tokens cannot be traded. Instead, they give token holders the right to vote on changes to the project's underlying code and to signal their opinion on its direction and plans. The largest holder of WLFI is Abu Dhabi-based crypto firm DWF which bought $25 million worth of the tokens issued by the Trump family-controlled venture, according to a report by Reuters. World Liberty Financial also unveiled its own stablecoin last week. Besides this, President Trump and First Lady Melania Trump launched their own set of memecoins on the eve of the presidential swearing-in ceremony in January this year. More recently, Trump announced that top holders of the $TRUMP memecoin would have the opportunity to attend a private dinner with him.
Yahoo
12-04-2025
- Business
- Yahoo
Trump brothers bet big on Bitcoin: Eric and Don Jr. launch major crypto mining venture
Eric Trump and Donald Trump Jr. are going all-in on the digital currency space with the launch of a new Bitcoin mining venture, American Bitcoin. The Trump brothers, already known for their ventures in real estate and investments, are merging their company, American Data Centers, with crypto giant Hut 8 Mining Corp. to form the new entity. The Trumps will own 20% of the company, with the remaining 80% controlled by Hut 8. For its part, the latter will contribute around 61,000 mining machines from its vast data centers, according to The Wall Street Journal. The deal positions the Trumps at the intersection of two highly profitable industries, real estate and cryptocurrency. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Launched in February 2025, American Data Centers is the latest project from the Trump brothers, teaming up with Dominari, a boutique investment firm tied to the Trump Tower. This venture marks the third major crypto-related initiative from the family in less than a year, showing their growing presence in the digital currency space. Earlier in 2024, the Trump brothers rolled out World Liberty Financial — a company offering two types of digital currency — followed by the $TRUMP meme coin just before President Trump's swearing-in. So, why Bitcoin? Bitcoin remains the gold standard in the cryptocurrency world, despite other coins like Ethereum, Tether, and even Dogecoin gaining some attention. It is the oldest and largest crypto, and it's mined through energy-intensive computing to unlock new tokens. Eric Trump, Chief Strategy Officer at American Bitcoin, sees it as a hedge against the family's real estate holdings. He's even hinted at the potential for a 'Bitcoin reserve' and possibly going public with the company in the future. Donald Trump Jr. also called the new venture a 'major opportunity,' in a press release, emphasizing the family's 'conviction in Bitcoin' and the potential for profits if mining operations are done right. Despite the connection to their real estate empire, the brothers are trying to separate American Bitcoin from the Trump Organization, though concerns over conflicts of interest remain. The volatility of crypto has been a big topic, especially with the market's roller-coaster ride tied to regulatory shifts, so this move by the Trump family is attracting attention. Read more: The US stock market's 'fear gauge' has exploded — but this 1 'shockproof' asset is up 14% and helping American retirees stay calm. Here's how to own it ASAP With Eric Trump serving as Chief Strategy Officer, the venture gains instant recognition, possibly paving the way for more celebrity-backed investments in Bitcoin mining. This move could signal a rise in institutional interest in mining, key to validating Bitcoin transactions and securing blockchain networks. For individual investors, this development could bring several changes. To start, the launch of a major mining operation like American Bitcoin could impact Bitcoin's supply and influence its price volatility, because public perception can influence short-term pricing. From a regulatory perspective, as crypto mining gains more spotlight, it could prompt new regulations, especially surrounding its environmental footprint and energy use. The EPA has already stated it plans to review the climate effects of crypto mining. In terms of investment opportunities, the venture may open up fresh investment products tied to Bitcoin mining, giving investors a chance to diversify their portfolios. Given these developments, here are a few tips for adjusting your investment strategies. Think about adding exposure to Bitcoin mining to diversify, either by investing directly in mining companies like American Bitcoin or through financial products that track mining performance. It's important to stay alert to regulatory updates. Crypto mining's increasing visibility could lead to new regulations, particularly on taxes and environmental issues. For example, the IRS requires taxpayers to report all digital asset transactions, including mining income. As always with any investment, be aware of the risks. Keep an eye on the environmental and energy costs associated with mining operations. These factors, among others, could influence future regulations and the profitability of mining ventures. Check legitimate resources such as Internal Revenue Services Digital Assets, the U.S. Securities and Exchange Commission and Financial Crimes Enforcement Network and talk to your advisor. The Trump brothers' push into Bitcoin mining shows their ongoing search for wealth-building opportunities. While we don't yet know whether American Bitcoin will be the next big hit in the crypto world, it sure is one investors should keep an eye on. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
12-04-2025
- Business
- Yahoo
Trump brothers bet big on Bitcoin: Eric and Don Jr. launch major crypto mining venture
Eric Trump and Donald Trump Jr. are going all-in on the digital currency space with the launch of a new Bitcoin mining venture, American Bitcoin. The Trump brothers, already known for their ventures in real estate and investments, are merging their company, American Data Centers, with crypto giant Hut 8 Mining Corp. to form the new entity. The Trumps will own 20% of the company, with the remaining 80% controlled by Hut 8. For its part, the latter will contribute around 61,000 mining machines from its vast data centers, according to The Wall Street Journal. The deal positions the Trumps at the intersection of two highly profitable industries, real estate and cryptocurrency. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Launched in February 2025, American Data Centers is the latest project from the Trump brothers, teaming up with Dominari, a boutique investment firm tied to the Trump Tower. This venture marks the third major crypto-related initiative from the family in less than a year, showing their growing presence in the digital currency space. Earlier in 2024, the Trump brothers rolled out World Liberty Financial — a company offering two types of digital currency — followed by the $TRUMP meme coin just before President Trump's swearing-in. So, why Bitcoin? Bitcoin remains the gold standard in the cryptocurrency world, despite other coins like Ethereum, Tether, and even Dogecoin gaining some attention. It is the oldest and largest crypto, and it's mined through energy-intensive computing to unlock new tokens. Eric Trump, Chief Strategy Officer at American Bitcoin, sees it as a hedge against the family's real estate holdings. He's even hinted at the potential for a 'Bitcoin reserve' and possibly going public with the company in the future. Donald Trump Jr. also called the new venture a 'major opportunity,' in a press release, emphasizing the family's 'conviction in Bitcoin' and the potential for profits if mining operations are done right. Despite the connection to their real estate empire, the brothers are trying to separate American Bitcoin from the Trump Organization, though concerns over conflicts of interest remain. The volatility of crypto has been a big topic, especially with the market's roller-coaster ride tied to regulatory shifts, so this move by the Trump family is attracting attention. Read more: The US stock market's 'fear gauge' has exploded — but this 1 'shockproof' asset is up 14% and helping American retirees stay calm. Here's how to own it ASAP With Eric Trump serving as Chief Strategy Officer, the venture gains instant recognition, possibly paving the way for more celebrity-backed investments in Bitcoin mining. This move could signal a rise in institutional interest in mining, key to validating Bitcoin transactions and securing blockchain networks. For individual investors, this development could bring several changes. To start, the launch of a major mining operation like American Bitcoin could impact Bitcoin's supply and influence its price volatility, because public perception can influence short-term pricing. From a regulatory perspective, as crypto mining gains more spotlight, it could prompt new regulations, especially surrounding its environmental footprint and energy use. The EPA has already stated it plans to review the climate effects of crypto mining. In terms of investment opportunities, the venture may open up fresh investment products tied to Bitcoin mining, giving investors a chance to diversify their portfolios. Given these developments, here are a few tips for adjusting your investment strategies. Think about adding exposure to Bitcoin mining to diversify, either by investing directly in mining companies like American Bitcoin or through financial products that track mining performance. It's important to stay alert to regulatory updates. Crypto mining's increasing visibility could lead to new regulations, particularly on taxes and environmental issues. For example, the IRS requires taxpayers to report all digital asset transactions, including mining income. As always with any investment, be aware of the risks. Keep an eye on the environmental and energy costs associated with mining operations. These factors, among others, could influence future regulations and the profitability of mining ventures. Check legitimate resources such as Internal Revenue Services Digital Assets, the U.S. Securities and Exchange Commission and Financial Crimes Enforcement Network and talk to your advisor. The Trump brothers' push into Bitcoin mining shows their ongoing search for wealth-building opportunities. While we don't yet know whether American Bitcoin will be the next big hit in the crypto world, it sure is one investors should keep an eye on. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Trump's sons to launch American Bitcoin
On March 31, Eric Trump and Donald Jr. — U.S. President Donald Trump's sons — entered into a partnership with the Bitcoin mining firm Hut 8 to launch American Bitcoin. As per the statement, Hut 8 contributed most of its mining infrastructure to American Data Centers — formed by a group of investors including Eric Trump and Donald Trump Jr. — in exchange for the majority stake in the company, rebranded to American Bitcoin after the deal. While Hut 8 owns an 80% stake in American Bitcoin, Trump's sons and their partners own a 20% stake in the company. Eric Trump will act as the Chief Strategy Officer at American Bitcoin. The company is a subsidiary of Hut 8 that will focus on industrial-scale Bitcoin mining and strategic Bitcoin reserve development. American Bitcoin aims to become the world's largest miner with the goal of reaching 50 EH/s in hash rate. Hash rate refers to the speed at which a miner can perform the cryptographic calculations to mine new blocks in the Bitcoin blockchain. The Trump family is already deeply involved in several cryptocurrency businesses. World Liberty Financial, the decentralized finance (DeFi) protocol backed by President Trump and his sons, recently began testing a USD-pegged stablecoin. On March 24, Trump Media & Technology Group (Nasdaq: DJT) — majority-owned by President Trump — announced a strategic partnership with to launch crypto exchange-traded funds (ETFs). President Trump and his wife Melania had also launched their eponymous meme coins ahead of his inauguration as the U.S. president. As far as Bitcoin mining is concerned, it once boasted of being an incredibly rewarding business. However, the industry now faces challenges of rising energy costs and reduced block rewards. The Bitcoin halving in April 2024 reduced the block reward from 6.25 BTC to 3.125 BTC. Add to it the challenge of rising energy costs in the country. Besides, miners need to replace their equipment to keep up with the advancement of technology. Bitcoin, who significantly rallied around President Trump's election win and inauguration, has been on a decline for the past few weeks. As per Kraken's price feeds, BTC was trading at $81,808.38 at press time, with a modest hike of around 15% year-on-year (YoY).
Yahoo
31-03-2025
- Business
- Yahoo
Trump Brothers Team Up With Hut 8 in Bitcoin Mining Venture
Eric Trump and Donald Trump Jr. will partner with Hut 8 to create a new Bitcoin mining and reserve business. 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 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. Read the original article on Investopedia
