Trumps venture into Bitcoin mining; US cryptocurrency policies likely to help: Report
Eric Trump, the second son of US President Donald Trump, announced a new venture in the cryptocurrency sector during a Wall Street conference call in April. He revealed a partnership with crypto firm Hut 8 to establish American Bitcoin, a company focused on Bitcoin mining.
Bitcoin mining involves operating energy-intensive machines to generate new coins. According to a report in the New York Times, Eric Trump highlighted that the policies of his father’s administration would provide American Bitcoin with a competitive advantage, citing the government’s commitment to low-cost energy and strong energy policies.
The Trump family’s business interests have long raised concerns about conflicts of interest between government and industry. The launch of American Bitcoin, which plans to merge with a publicly traded company later this year, has intensified these concerns by deepening the family’s involvement in the crypto sector.
President Trump is already linked financially to two other crypto ventures. During his tenure, he ended a Securities and Exchange Commission enforcement campaign against crypto companies and promised to support legislation favourable to the industry.
American Bitcoin, where Eric Trump serves as chief strategy officer, holds 215 Bitcoin valued at approximately $22.5 million, stated the report. The company aims to acquire more Bitcoin and plans to offer shares on Wall Street, providing another investment opportunity connected to the Trump family.
In recent weeks, Eric Trump and his brother Donald Trump Jr. have promoted American Bitcoin at major conferences in Las Vegas and Toronto, where the company’s branding was prominently displayed.
Representative Maxine Waters, the top Democrat on the House Financial Services Committee, criticised the venture, saying it is driven by profit motives and represents a conflict of interest.
The Bitcoin mining industry continues to grow, with several companies publicly traded and valued at over $12 billion combined. These firms have benefited from policies during the Trump administration.
The White House also announced plans for a national Bitcoin stockpile and other pro-crypto measures, which helped push Bitcoin prices to record highs. Eric Trump has stated that America could become the leading Bitcoin mining nation due to low energy costs.