Eric Trump and Donald Trump Jr. are jumping into the Bitcoin mining game, partnering with Hut 8 to kick off a new outfit called American Bitcoin. Announced on March 31, this deal sees Hut 8 handing over most of its mining gear to American Data Centers—a group backed by the Trump brothers and other investors—in exchange for an 80% chunk of the new company. The remaining 20% stays with the Trumps and their crew. Eric’s stepping up as Chief Strategy Officer, and the goal’s clear: scale up fast, hit a 50 EH/s hash rate, and claim a top spot among global miners while building a Bitcoin stash for the long haul. (Source: GlobeNewswire)
This isn’t the Trump family’s first rodeo with crypto. They’re already knee-deep in World Liberty Financial, a DeFi project testing a dollar-tied stablecoin, and Trump Media & Technology Group just linked up with Crypto.com for crypto ETFs. Plus, there’s the Trump-branded meme coins from Donald and Melania, launched before his latest stint in the White House began. The family’s betting big on digital cash, and American Bitcoin’s the latest piece of that puzzle. (Source: Wall Street Journal)
Mining’s Getting Tougher—and Pricier
Bitcoin mining used to be a goldmine, but the shine’s wearing off. The April 2024 halving slashed block rewards from 6.25 BTC to 3.125 BTC, cutting the payout for miners in half. Energy costs are creeping up too—those power-hungry rigs don’t run cheap, especially as electricity prices climb across the U.S. On top of that, the tech’s always moving; miners have to swap out old machines for newer, faster ones just to stay in the game. It’s a brutal combo that’s squeezing profits and making scale—like what American Bitcoin’s chasing—more critical than ever. (Source: WisdomTree)
The numbers tell part of the story. Bitcoin’s hovering around $81,808.38, according to Kraken, up a decent 15% from last year. That’s a solid gain, sure, but it’s been slipping lately after a post-election surge tied to Trump’s win. Miners like Hut 8 and the Trump venture are banking on volume and efficiency to offset the tighter margins. With 61,000 machines in play, American Bitcoin’s got the muscle to try, but the economics aren’t as forgiving as they once were.
Can American Bitcoin Crack the Top Tier?
The plan’s ambitious: 50 EH/s would put American Bitcoin in the ring with giants like Marathon Digital and Riot Platforms. Hash rate’s the name of the game here—it’s how fast those machines can crunch the math to unlock new Bitcoin blocks. Hut 8’s bringing the heavy lifting, with 80% ownership and a network of 11 U.S. data centers to keep things humming. Eric Trump’s strategy gig hints at a focus beyond just mining—think reserves and maybe even a public listing down the line.
Still, the road’s not smooth. Rising costs and shrinking rewards mean every move’s got to count. The Trump name might open doors—especially with a crypto-friendly White House—but it’s no guarantee in a field where energy prices and tech upgrades can sink even the big players. Posts on X are buzzing about the political angle, and yeah, it’s hard to ignore: the President’s sons diving into an industry he’s hyping could stir the pot. For now, American Bitcoin’s a bet on scale and timing—whether it pays off depends on how well they navigate a market that’s tougher than it looks. (Source: Wall Street Journal)
Alexander Clark is a financial writer with a knack for breaking down complex market trends and economic shifts. As a contributor to The Daily Overview, he offers readers clear, insightful analysis on everything from market movements to personal finance strategies. With a keen eye for detail and a passion for keeping up with the fast-paced world of finance, Alexander strives to make financial news accessible and engaging for everyone.
