American Bitcoin Corp. Officially Launches with Support from the Trump Family
American Bitcoin Corp. made its official debut this week with the backing of the Trump family, established by an investment team comprised of the publicly listed American company Hut 8 and Donald Trump’s two sons, Eric Trump and Donald Trump Jr. In a Bloomberg interview this morning on April 2, Eric Trump stated that the establishment of this company is not only aimed at bitcoin mining but also integrates energy and AI data center businesses. There are plans for an Initial Public Offering (IPO) in the future to create a “vertically integrated” American cryptocurrency industry chain.
Trump Family Involvement: Hut 8 Transfers Large Amount of Mining Equipment to New Company
American Bitcoin was jointly funded by the investment team consisting of Hut 8 Corp., a publicly listed mining company, and Donald Trump’s two sons, Eric Trump and Donald Trump Jr. Hut 8 CEO Asher Genoot stated that the majority of their mining equipment has been transferred to the new company, indicating that Hut 8 is not just nominally involved but is indeed collaborating in a substantial manner.
Ultimate Goal of “Sister Companies”
Genoot mentioned that the ultimate goal of the partnership is to form a pair of “sister companies.” Following the alliance:
- Hut 8: Currently focused on energy and AI data centers
- American Bitcoin: Fully responsible for bitcoin mining and asset reserves
There is a promising outlook for vertical integration, aiming to create the most efficient cryptocurrency industry chain in the United States. Genoot further indicated that, in addition to going public in the future, they also plan to seek further fundraising in the near term.
Eric Trump: The Strongest Mining Company Must Be Made in America
During the interview, Eric emphasized that the goal is not just to make this bitcoin mining company the strongest in the world but to achieve this within the United States. He also clarified that this is purely a private investment and is unrelated to the government.
Collaboration with Bitmain for Technology Integration and Scale Expansion
American Bitcoin also announced its collaboration with Chinese mining equipment giant Bitmain, not only to introduce the most advanced mining machines but also to conduct large-scale deployments. However, it is noteworthy that Bitmain’s AI subsidiary, Sopghgo, has recently been blacklisted by the U.S. government, which has intensified controls over Chinese mining equipment.
Impact of Bitcoin Halving on Revenue: Market Competition Intensifies
Due to the bitcoin “halving” in April of this year, reduced mining rewards, and an influx of competitors, the mining industry is facing revenue pressures. However, thanks to the rebound in bitcoin prices and market support, many U.S. mining companies have successfully raised billions of dollars through stock and bond offerings.
Amid Intensifying U.S.-China Competition, How Will American Bitcoin and Bitmain Break Through?
In summary, despite the escalating technological competition between the U.S. and China, American Bitcoin has chosen to collaborate with the Chinese mining leader Bitmain, seemingly operating in a gray area. On one hand, American Bitcoin relies on Bitmain for high-performance mining machines to enhance efficiency, but on the other hand, it must confront heightened scrutiny of Chinese-made equipment in the U.S., and potentially face risks of future bans. Whether it can successfully become the global dominant player in the mining industry remains to be seen.
Risk Warning
Cryptocurrency investment carries a high degree of risk, and prices can be highly volatile. You may lose all your principal. Please assess risks carefully.