The Trump family is entering the Bitcoin (BTC) mining business with a new company called American Bitcoin.

According to the press release dated March 31, Eric Trump and Donald Trump Jr. have teamed up with publicly trading crypto infrastructure firm Hut 8 to launch a Bitcoin mining company American Bitcoin.

The Trump family is venturing into the Bitcoin (BTC) mining industry with a new company, American Bitcoin, in partnership with crypto firm Hut 8 (TSX: HUT).

The company will be 20% owned by Eric Trump and Donald Trump Jr., while Hut 8 will hold the remaining 80% stake.

The company will be 20% owned by Eric Trump and Donald Trump Jr., while Hut 8 will hold the remaining 80% stake.

American Bitcoin will initially concentrate on mining operations and build a strategic Bitcoin reserve. There are also plans to potentially pursue a public listing for the company in the future.

“We may never be able to say this again, but the Trump family is entering the Bitcoin mining business,” said Donald Trump Jr.

“From the start, we’ve backed our conviction in Bitcoin – personally and through our businesses. But simply buying Bitcoin is only half the story. Mining it on favorable economics opens an even bigger opportunity.”

This venture marks a continuation of the Trump family’s involvement in the crypto sector, which also includes projects like World Liberty Financial and a potential stablecoin.

Despite concerns regarding Bitcoin mining’s environmental footprint, Eric Trump, who will serve as the company’s chief strategy officer, highlights that lower energy costs in the U.S. will grant American miners a competitive advantage on a global scale.

Asher Genoot, the CEO of Hut 8, adds that American Bitcoin will benefit from its competitive edge in low energy costs and scalable infrastructure.

In exchange for the 80% stake in American Bitcoin, Hut 8 will contribute 61,000 mining machines and house the operations at 11 U.S. data centers.

Hut 8’s stock price rose by 6.4% in response to the announcement. However, its stock is still trading 42.8% lower compared to the beginning of the year.

Genoot further explained the rationale behind the partnership:

“By carving out our mining business into a standalone entity, which will raise its own capital, we align each segment of the business with its respective cost of capital. The transaction creates two focused yet complementary businesses, each purpose-built for its respective mandate. It evolves Hut 8 toward more predictable, financeable, lower-cost-of-capital segments and establishes American Bitcoin as a pure-play mining platform built for exahash growth, Bitcoin production, and operating leverage.”