The Trump family is expanding its cryptocurrency businesses after entering a deal with bitcoin miner and energy infrastructure firm, Hut 8.
On Monday, Eric Trump and Donald Trump Jr.'s firm, American Data Centers, announced it would merge with and take a 20% stake in American Bitcoin, a new mining operation.
As part of the deal, Hut 8 transferred "substantially all" of its ASIC bitcoin miners to American Data Centers, which was renamed and relaunched as American Bitcoin. Hut 8 received an 80% ownership in the company for the transaction.
The new American Bitcoin "aims to become the world's largest, most efficient pure-play miner while building a robust strategic bitcoin reserve," according to the release.
Going forward, Hut 8's bitcoin mining operations will remain under its compute segment, but operate through the American Bitcoin brand. Initially, American Bitcoin's results will be consolidated under Hut 8's financial statements for reports. Meanwhile, Hut 8 will serve as American Bitcoin's exclusive infrastructure and operations partner. The two companies plan a series of long-term commercial agreements that will generate stable, revenue streams for Hut 8's power and digital infrastructure segments.
Mike Ho, chief strategy officer for Hut 8, will serve as executive chairman for American Bitcoin. Matt Prusak, former chief commercial officer for Hut 8, will become chief executive. Eric Trump will serve as chief strategy officer.
"From the start, we've backed our conviction in bitcoin — personally and through our businesses," Trump Jr. said in the release. "But simply buying bitcoin is only half the story. Mining it on favorable economics opens an even bigger opportunity."
Trump Jr. added the team is excited to bring investors into the equation.
Hut 8 CEO Asher Genoot said the transaction creates two "focused yet complementary businesses," each built for their respective missions. The deal evolves Hut 8 toward "more predictable, financeable, lower-cost-of-capital segments," Genoot added.
Bitcoin Price, Stock Action
HUT stock rose in early trade, but reversed to close down 0.9%.
Meanwhile, bitcoin fell over the weekend to trade near $82,600 late Monday from around $85,000 on Friday evening. The trade wars have pressured cryptocurrency prices, with President Donald Trump is set to unveil another wave of tariffs on Wednesday.
The iShares Bitcoin Trust and other bitcoin ETFs slumped 1.6% Monday.
Coinbase stock pared its decline to 1%.
Other miners fell. Mara Holdings dropped 7.8%, while Riot Platforms retreated nearly 4%.
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