Eric Trump and Donald Trump Jr. are deepening their family’s involvement in the cryptocurrency industry by investing in a new Bitcoin mining company, American Bitcoin.
The venture is the result of a merger between Bitcoin miner Hut 8 and American Data Centers Inc., a company backed by the Trump sons.
Announced on Monday, the deal gives Hut 8 an 80% stake in the newly formed American Bitcoin, with the remaining 20% controlled by American Data Centers Inc., whose investors include Eric and Donald Trump Jr. Eric Trump will serve as the company’s co-founder and chief strategy officer.
“From the start, we’ve backed our conviction in Bitcoin—personally and through our businesses,” Donald Trump Jr. said. “But simply buying Bitcoin is only half the story. Mining it on favorable economics opens an even bigger opportunity.”
Bitcoin mining is a process in which powerful computers solve complex mathematical problems to validate transactions on the blockchain, earning newly minted Bitcoin as a reward. The industry has faced criticism over its high energy consumption and environmental impact, but it remains a major part of the crypto ecosystem.
The mining venture is the Trump family’s third major cryptocurrency-related project in the past year. Donald Trump and his sons recently launched World Liberty Financial, a crypto company offering digital currencies, including a stablecoin. Additionally, President Trump and former First Lady Melania Trump have both introduced memecoins.
The Trump family’s increasing interest in crypto marks a significant shift from past skepticism. In 2021, Donald Trump dismissed Bitcoin as a “scam.” Now, as he campaigns for a second term, he has pledged to turn the United States into the “crypto capital of the planet.”
The Trump-backed venture comes at a time when Bitcoin and digital assets are gaining more mainstream acceptance. American Bitcoin aims to become a publicly listed company in the future and plans to build a strategic Bitcoin reserve.
Hut 8, which has a market capitalization of about $1.2 billion, will act as American Bitcoin’s exclusive infrastructure and operations partner. While the Trump family will not be directly managing the company’s daily operations, their involvement is expected to draw significant attention to the project.
Following the announcement, Hut 8’s stock initially surged in pre-market trading before settling back to $11.69. The company is set to hold a conference call on Tuesday to discuss the launch of American Bitcoin.
With input from Reuters, Fortune, and the New York Times.
