US President Donald Trump's sons Eric and Donald Jr. have teamed up with Hut 8 to launch a new entity called American Bitcoin Corp., which will mine bitcoin, the company said in a statement on March 31, signaling the Trump family's ambitious foray into the world of digital assets.
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How it all works
The new entity, which will be a majority-owned part of Hut 8, will focus on bitcoin mining and strategic reserves of the currency. The initiative was born after Hut 8 bought the majority of American Data Centers Inc., a company founded by investors including Trump's sons. The asset was later turned into American Bitcoin Corp. As part of the deal, Hut 8 gave back almost all of its ASIC mining equipment to the company, taking 80% of its shares.
Who is in control and how does the market react?
Eric Trump has taken on the role of chief strategy officer for the new company, while Matt Prusak has been tasked with operational leadership. Hut 8 shares jumped about 5.8% following the announcement, though they have fallen 43% this year, indicating volatility in the crypto sector.
Why is this important?
Not only does this project strengthen Hut 8's position in the Bitcoin mining space, but it also demonstrates the Trump family's intentions to actively advance their interests in the cryptocurrency space by partnering with a well-known market player.
- Bitcoin Cryptocurrency