On March 31, Eric Trump and Donald Jr. (the son of US President Donald Trump) signed a partnership with Bitcoin mining company HUT 8 to launch American Bitcoin.
HUT 8 provided 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 company’s majority stake, according to the statement.
Hut 8 owns 80% stake in American Bitcoin, but Trump’s son and his partner own 20% stake in the company.
Eric Trump will serve as Chief Strategy Officer for Bitcoin in the United States. The company is a subsidiary of HUT 8, focusing on industrial-scale Bitcoin mining and strategic Bitcoin reserve development.
Bitcoin in the US aims to become the world’s largest miner with the goal of reaching 50 EH/s at hashrate. A hashrate refers to the speed at which a miner can perform cryptographic calculations and minify new blocks on the Bitcoin blockchain.
The Trump family is already heavily involved in several cryptocurrency businesses.
World Liberty Financial, a distributed financial (DEFI) protocol supported by President Trump and his sons, recently began testing Stablecoin on its USD page.
On March 24, Trump’s Trump Media & Technology Group (NASDAQ:DJT), owned by President Trump, announced its strategic partnership with Crypto.com and launched the Crypto Exchange-Traded Funds (ETFS).
President Trump and his wife Melania launched a coin with the meme of the same name ahead of their inauguration as US president.
As far as Bitcoin mining is concerned, it once boasted of being an incredibly rewarding business. However, the industry is currently facing challenges of rising energy costs and reducing bloc rewards.
Half of Bitcoin in April 2024 reduced block rewards from 6.25 BTC to 3.125 BTC. Add the challenge of rising national energy costs. Moreover, miners need to change equipment to keep up with technological advances.
Bitcoin, which has attracted a massive sum of President Trump’s election victory and inauguration, has declined in the past few weeks.
According to Kraken’s price supply, BTC was trading at $81,808.38 at press, but it had an increase of around 15% year-on-year (Yoy).