Trump Family Partners With Hut 8 to Form New Bitcoin Mining Company
The Trump family is expanding its presence in the cryptocurrency space by partnering with Hut 8, a leading Bitcoin mining company, to form American Bitcoin Corp. The new company aims to become the most efficient Bitcoin miner and build a reserve.
Partnership Structure and Leadership
In the deal, Hut 8 will own 80% of American Bitcoin Corp by transferring the majority of its ASIC miners to the new company. American Data Centers, a company owned by Eric Trump and Donald Trump Jr., will hold the remaining 20%. Eric Trump will serve as Chief Strategy Officer (CSO) of American Bitcoin Corp, while Matt Prusak will serve as Chief Executive Officer (CEO).
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Goals and Development Strategy
American Bitcoin Corp aims to reach a mining capacity of more than 50 EH/s with an efficiency of less than 15 J/TH, aiming to position itself as one of the most advanced operators in the industry. In addition to mining, the company is also developing a strategic Bitcoin reserve to ensure financial strength and flexibility. The company also plans to go public in the future to support its long-term growth strategy and enhance transparency and investor confidence.
Market and Analyst Reaction
The deal has attracted significant attention from market analysts. Matthew Sigel, Head of Digital Asset Research at VanEck, expressed surprise at Hut 8 selling the rights to manufacture 61,000 Bitcoin mining machines in exchange for an 80% stake in the new company. Following the announcement, Hut 8’s stock rose 2.25%, indicating a positive market reaction.
Conclusion
The Trump family’s deeper involvement in Bitcoin mining through its partnership with Hut 8 marks a significant step in expanding their influence in the cryptocurrency industry. The partnership is not only financially driven, but also demonstrates their commitment to promoting the development and widespread adoption of blockchain technology and cryptocurrencies in the United States.