Bitcoin mining giant Hut 8 has transferred its U.S. mining operations into American Data Centers, a company linked to Eric Trump and Donald Trump Jr., the sons of President Donald Trump.
In exchange for an 80% stake in American Data Centers, Hut 8 has contributed its extensive mining infrastructure to the venture. The company will now be rebranded as American Bitcoin, signaling a stronger alignment with the Trump family’s growing interest in digital assets.
Hut 8’s Role and Expansion Plans
Hut 8 is responsible for hosting 61,000 Bitcoin mining rigs across 11 data centers in the United States. The company, headquartered in Canada, is one of the largest publicly traded Bitcoin miners, known for its focus on securing long-term energy contracts and maximizing mining efficiency.
Eric Trump, who will serve as Chief Strategy Officer of American Bitcoin, stated that this partnership aligns with the Trump family’s broader focus on hard assets. While the family has historically been heavily invested in real estate, their interest in digital currencies has surged in recent years.
The Trump family now clearly believes in Bitcoin as a store of value and they are excited to build a strategic Bitcoin reserve with this new endeavour.
Potential Collaboration with Trump’s DeFi Project
Although American Bitcoin will operate independently, industry insiders speculate that it could eventually collaborate with World Liberty Financial, a DeFi (decentralized finance) initiative founded by Eric and Donald Trump Jr. This project aims to integrate blockchain-based financial services into the broader U.S. financial landscape.
Regulatory and Ethical Concerns
Trump has repeatedly stated that he wants to make the United States the global leader in crypto and blockchain technology. His administration has promised a pro-crypto regulatory environment, contrasting sharply with the Biden administration, which often clashed with the industry through stringent regulations and enforcement actions.
However, the Trump family’s deepening involvement in the cryptocurrency space raises questions about conflicts of interest. Given that the family is directly profiting from crypto-related ventures, including the launch of Trump and Melania-themed memecoins, critics argue that the President’s policies could favor personal business interests over impartial governance.
The Trump administration’s stance on crypto regulation and industry support will likely remain a major point of debate.
