American Bitcoin, the company backed by Eric Trump and Donald Trump Jr., sons of the president of the United States, invested $314 million to buy 16,299 Bitcoin miners from the Chinese manufacturer Bitmain.
The acquisition stands out for its unusual structure: payment will not be in cash, but in bitcoin that It may be redeemed within two years at the market price.
According to documents filed with the United States Securities and Exchange Commission (SEC), the financing model for the purchase of Bitcoin miners reflects a trend in the mining industry toward greater flexibility in the face of market volatility.
The purchase of the miners comes after, last August, American Bitcoin and Bitmain will formalize a strategic cooperation for the acquisition of tens of thousands of Antminer U3S21EXPH equipment. This, for a total computing capacity of 14 EH/sa power level that places it among the largest mining operations in North America.
This move comes months after Trump’s children merged their company American Data Centers with a new entity called American Bitcoin, in which they retain a 20% stake. The remaining 80% belongs to Hut 8, one of the most consolidated firms in the sector, which contributed 61,000 ASIC machines to the joint ventureCriptoNoticias reported.
Although the profitability of Bitcoin mining has decreased in recent months, American Bitcoin’s bet points to a long-term vision. This is a more efficient network, greater control over energy infrastructure and the expectation of a new bullish cycle that will make mining attractive again.
American Bitcoin is currently the 32nd largest publicly traded company in BTC holdings. The entity accumulates 2,443 bitcoin to date.
The NASDAQ-listed company is on track to become one of the largest public Bitcoin mining entities with US capital.