US President Donald Trump and his sons announced a new and complex Bitcoin mining attempt in the crypto world.
Trump Family’s Bitcoin move
On Monday, Donald Trump’s sons Donald Jr. And Eric announced that they would establish a company called American Bitcoin Corp, one of the largest Bitcoin mining companies, one of the largest public Bitcoin mining companies.
The new company will operate as a subsidiary of the HUT 8. This plan increases the impact of the Trump family in the crypto world. Interestingly, this development emerged at a time when Trump administration planned regulatory and legal changes in the sector.
Truth.fi is the Trump family’s crypto projects in the crypto world, Truth.Fi, which aims to offer crypto management for customers through breast coins, decentralized finance (defi) applications, NFTs and Charles Schwab.
Structure of the complex agreement
The new agreement was established in an unusual method. First of all, Donald Jr. And Eric Trump founded American Data Centers as a subsidiary of the Return Management Company Dominari Holdings. Then, the HUT 8 transferred the entire mining equipment to American Data Centers and obtained the majority shares in this company.
After this stage, the American Data Centers took over the Hut 8’s “Compute” segment and became the American Bitcoin.
Some experts in the market say that they have difficulty understanding the logic behind this complex structure. Van Eck’s Digital Asset Research Director Matthew Sigel said, “I do not understand the logic of selling 61,000 miners to get a share of 80 %from a side organization, which has already had 100 %of the hut 8,” he wrote.
American Bitcoin’s goals and leading staff
American Bitcoin will mainly focus on Bitcoin mining and aim to create a strategic Bitcoin reserve. Matt Prusak, the CEO of the company, and Eric Trump will be the chief strategy manager. Donald Trump Jr. has no official role in the company.
HUT 8 plans to combine its own information processing expertise with Eric Trump’s commercial intelligence, expertise in capital markets, and its devotion to the development of decentralized financial systems.
“This process means significant progress in Dominari’s efforts to create shareholders,” Anthony Hayes, CEO of Dominari Holdings, said.
The reaction of the market after the Trump move
Following this announcement, HUT 8 shares rose by 1.6 %, while Dominari Holdings shares depreciated due to general market sales.
Hut 8 did not comment on this partnership. However, some market observers question why the HUT 8 opened the mining segment and cooperates with brothers.
American Bitcoin’s main competitors in Bitcoin mining include Marathon Digital, Riot Platforms and Cleanspark. This move of the Trump family continues to echo in the crypto world.
