Trump Family-Backed American Bitcoin Builds $23 Million BTC Reserve Ahead of Public Listing

American Bitcoin (ABTC), a cryptocurrency mining company backed by Eric Trump and Donald Trump Jr., has amassed a reserve of 215 Bitcoin (BTC), valued at approximately $23.65 million as of press time, since its inception in April, according to a June 6 filing with the U.S. Securities and Exchange Commission (SEC). The disclosure highlights the firm’s strategic focus on accumulating Bitcoin as a core asset, with plans to expand its holdings dynamically based on market conditions. As ABTC prepares to go public through a merger with Gryphon Digital Mining, the move underscores the Trump family’s deepening involvement in the cryptocurrency sector.

Strategic Bitcoin Accumulation

In its SEC filing, American Bitcoin emphasized that its Bitcoin reserve is a “core strategic asset” designed to bolster its balance sheet and enhance long-term shareholder value. The company stated, “Bitcoin accumulation is not a side effect of ABTC’s business. It is the business. ABTC’s layer 2 strategy is designed to transform its Bitcoin production into long-term Bitcoin ownership.” This approach aligns with a growing trend among public and private companies, popularized by firms like Strategy, which have increasingly added Bitcoin to their treasuries since 2020.

The firm’s Bitcoin holdings, accumulated over just two months, are stored securely with Coinbase Custody in cold wallets, employing multifactor authentication and whitelisted withdrawal protocols to ensure robust security. ABTC’s strategy prioritizes direct investment in mining operations over physical infrastructure, allowing it to scale efficiently. With over 60,000 miners—primarily from Bitmain and MicroBT—deployed across three Hut 8-managed facilities in New York, Alberta, and Texas, ABTC boasts a mining capacity of 10.17 exahashes per second (EH/s). This significant hash rate positions the company as a competitive player in the Bitcoin mining industry.

Path to Public Listing

American Bitcoin’s ambitions extend beyond mining and accumulation. Shortly after American Bitcoin announced its formation in April, Bloomberg reported that the company was considering an initial public offering (IPO) to raise additional funds. On May 12, the company announced plans to go public through a stock-for-stock merger with Gryphon Digital Mining, with the combined entity set to trade on Nasdaq under the ticker “ABTC.” Eric Trump, a co-founder of American Bitcoin, will join the board of directors post-merger, signaling the Trump family’s active role in the firm’s future. The merger is expected to close in the third quarter, marking a significant milestone in the Trump family’s expanding cryptocurrency portfolio.

As a primary subsidiary of Hut 8, an energy infrastructure platform integrating power, digital infrastructure, and large-scale computing, American Bitcoin relies on Hut 8 as its exclusive infrastructure and operations partner. Following American Bitcoin’s planned merger and public listing, the partnership is expected to generate stable, contracted revenue streams for Hut 8’s power and digital infrastructure divisions.

“This transaction marks the next step in scaling American Bitcoin as a purpose-built vehicle for low-cost Bitcoin accumulation at scale,” said Asher Genoot, CEO of Hut 8. “By taking American Bitcoin public, we expect to unlock direct access to dedicated growth capital independent of Hut 8’s balance sheet, while preserving long-term exposure to Bitcoin upside for our shareholders.”

Trump Family’s Crypto Business

Founded by a group including Donald Trump Jr. and Eric Trump, American Bitcoin is part of the Trump family’s expansive cryptocurrency ventures. Beyond mining, the family’s crypto portfolio includes memecoins, NFTs, the DeFi project World Liberty Financial (WLFI), and WLFI’s stablecoin, USD1, launched in March. Eric Trump has previously stated that WLFI is also exploring the development of its own crypto wallet.

The Trump family’s crypto endeavors have not been without scrutiny. Critics have raised concerns about potential conflicts of interest, given the family’s political influence and the regulatory oversight of the crypto industry. Criticism of the Trump family’s crypto ventures has emerged as a significant hurdle in advancing bipartisan cryptocurrency legislation, such as the GENIUS Act and CLARITY Act. Critics, led by Democratic Senator Elizabeth Warren, are pushing amendments to prevent the Trump family from leveraging crypto-related laws for personal gain.

Industry Context and Challenges

American Bitcoin’s entry into the mining sector comes at a time of heightened competition and environmental scrutiny. Bitcoin mining’s energy-intensive nature has drawn criticism. Meanwhile, as Bitcoin’s “digital gold” store-of-value narrative gains traction, transaction activity on the Bitcoin network has declined. Coupled with reduced block rewards following the Bitcoin halving, this has led to lower revenues for miners. These dynamics pose operational challenges for American Bitcoin. However, the company’s low-cost operational model and focus on Bitcoin accumulation could provide a competitive edge in the evolving mining landscape.