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Eric Trump launches Bitcoin Mining Company: "Almost no connection to the White House"
Eric Trump, son of former US President Donald Trump, has announced the launch of a new Bitcoin mining company named "American Bitcoin Corp." in collaboration with the Canadian mining specialist Hut 8 Corp. The company aims to establish itself as one of the largest Bitcoin mining and holding firms globally. Eric Trump emphasized that there is "practically no communication" with his father regarding cryptocurrencies, despite the increasing focus of the US government on the crypto sector, as reported by Coin-Update.
The partnership with Hut 8 Corp. is a significant aspect of this venture. Hut 8 will contribute its existing mining infrastructure to the new company, securing an 80% stake in the business. The remaining 20% will belong to the Trump side, although the exact share of the Trump family remains undisclosed. Eric Trump will serve as the Chief Strategy Officer, focusing on the company's long-term direction. According to CEO Asher Genoot, the company aims to produce Bitcoin at a lower cost than purchasing it, which could provide a competitive edge in the market.
"If a company can mine Bitcoin for almost 50% of the current prices – and do so on a large scale – then that’s an explosive combination," Eric Trump stated.
In addition to mining, the company plans to build a strategic Bitcoin reserve, likened to a digital "Fort Knox." This reserve is intended to strengthen the firm's position in the volatile cryptocurrency market.
| Company | Stakeholders | Focus |
|---|---|---|
| American Bitcoin Corp. | Hut 8 (80%), Trump Family (20%) | Bitcoin Mining & Strategic Reserve |
- Eric Trump and Donald Trump Jr. have launched "American Bitcoin Corp." in partnership with Hut 8 Corp.
- Hut 8 holds an 80% stake, while the Trump side retains 20%.
- The company aims to produce Bitcoin at significantly lower costs and build a strategic reserve.
Addressing Criticism and Potential Conflicts of Interest
Eric Trump has faced criticism regarding potential conflicts of interest, given the Trump family's political background and the growing regulatory focus on cryptocurrencies. In an interview with Bloomberg Crypto, he dismissed these concerns, stating that his father has always supported cryptocurrencies due to their resistance to regulatory pressures. He further argued that accusations of personal enrichment through regulatory developments are baseless.
"By that logic, lower energy prices would enrich us because we buy gasoline for our lawnmowers on golf courses. That’s absurd," Eric Trump remarked.
Despite the criticism, Eric Trump reiterated that there is minimal interaction with his father concerning cryptocurrency matters. He also highlighted the family's prior involvement in the crypto sector through projects like World Liberty Financial, which has raised significant funds via governance tokens and invested in digital assets.
- Eric Trump denies any significant communication with his father about cryptocurrencies.
- Critics have raised concerns about the Trump family's involvement in the crypto sector, but Eric Trump has dismissed these claims as unfounded.
- The family has prior experience in the crypto industry through projects like World Liberty Financial.
Conclusion
With the launch of American Bitcoin Corp., the Trump family is making a significant entry into the industrial Bitcoin mining sector. Partnering with Hut 8 Corp., the company aims to leverage cost-efficient mining strategies and establish a strategic Bitcoin reserve. While Eric Trump has dismissed concerns about conflicts of interest, the close ties between politics and the crypto industry will likely remain a topic of scrutiny.
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