Key Takeaways
- Donald Trump’s eldest son plans to invest in a Bitcoin mining company.
- The mining company will be majority owned by Hut 8, which will hold an 80% stake, while Trump’s sons will hold a 20% stake.
- The Bitcoin mining investment comes within a week of the stablecoin launch by the Trump family.
Donald Trump’s sons reportedly plan to invest in a Bitcoin mining company after successfully launching a crypto Decentralized Finance (DeFi) company with World Liberty Financial (WLFI).
The latest endeavor would expand the Trump family’s crypto businesses, including a Bitcoin-focused investment, a DeFi protocol, a USD-backed stablecoin, and Memecoins.
Trump Sons to Invest in Hut 8 Owned Mining Firm
According to a report in the Wall Street Journal, Eric Trump and Donald Trump Jr. will invest in American Bitcoin, a mining operation majority-owned by Hut 8.
Trump’s eldest sons will acquire a 20% stake in the Bitcoin mining company by merging it with their firm, American Data Centers, which launched in February this year.
As part of the agreement between the two firms, Hut 8 will transfer around 61,000 of its specialized Bitcoin-mining equipment to American Bitcoin in return for an 80% stake in the new company.
Eric Trump, who has become a prominent crypto advocate since Donald Trump took office, 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,” Eric Trump Stated.
The move aligns with the president’s vision of making America the crypto capital and promoting America’s first crypto policy. The new mining company aims to become the world’s largest Bitcoin miner and plans to build its own Bitcoin reserve.
Trump’s Crypto Empire Grows Despite Market-Wide Rout
The DeFi firm WLFI launched a dollar-backed stablecoin called USD1 amid accelerated legal resolutions to bring comprehensive stablecoin regulations.
USD1 will be backed by short-term U.S. treasuries, U.S. dollar deposits, and other cash equivalents. The token will be issued on the Ethereum network and a blockchain created by Binance.
The WLFI ecosystem has invested over $300 million out of its $550 million purse from selling WLFI tokens.
Besides the mainstream crypto firms and projects, Trump’s official memecoin has also added billions to his fortune. The memecoin has lost over 85% of its valuation since its all-time high but still boasts a $7 billion valuation in Trump’s portfolio.
While many hoped President Trump’s inauguration would bring more bullish days for the crypto ecosystem, the first three months of his tenure have proven to be one of the worst phases for the crypto industry.
Although Trump has fulfilled most of his pre-poll promises by announcing a Bitcoin reserve, a crypto stockpile, a pro-crypto administration, and several other measures, the crypto market has lost hundreds of billions in market capitalization in the past three months.
At a time when crypto traders are reeling from mounting bearish pressure, the Trump family is expanding its crypto empire with new investments and product launches.
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