The president’s two oldest sons are investing in a bitcoin-mining company, adding to the Trump family’s expanding portfolio of cryptocurrency businesses.
Eric Trump and Donald Trump Jr.’s American Data Centers will merge with and take a 20% stake in American Bitcoin, a mining operation majority-owned by Hut 8 HUT -0.42%decrease; red down pointing triangle, the publicly traded crypto-infrastructure company. Together, they aim to create the world’s largest miner of the digital currency, with designs on building its own “bitcoin reserve.”
In a matter of months, the Trumps started a decentralized-finance, or DeFi, project called World Liberty Financial, said their social-media company would invest in bitcoin and other digital assets, launched meme coins to capitalize on the popularity of the president and his wife and announced plans to issue a World Liberty dollar-backed stablecoin. And in his return to the White House, President Trump has said he aims to make the U.S. the “crypto capital of the world.”
The digital networks that comprise the cryptocurrency markets have offered the Trumps an ideal complement to their other family business: real estate, Eric Trump told The Wall Street Journal.
“We are a hard-asset family. I’m a hard-asset guy,” said Eric Trump, who will serve as American Bitcoin’s chief strategy officer. “My entire life has been spent building things, and I don’t think there is ever a better hedge against all of that than the true digital assets.”
American Data Centers was launched in February by Eric Trump, his brother Donald Jr. and Dominari DOMH -16.32%decrease; red down pointing triangle, a small investment firm that recently appointed the Trump brothers as advisers.
As part of the deal, Hut 8 will shift nearly 61,000 of its specialized bitcoin-mining machines to American Bitcoin in exchange for an 80% ownership in the new entity. The companies said no cash changed hands in the deal.
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