The United States President Donald Trumpโs family is expanding their ventures in blockchain technology. One of his sons, Eric Trump, is set to take the reins as the Chief Strategy Officer at American Bitcoin Corp, a freshly created company thatโs going to handle Bitcoin (BTC) mining in partnership with Hut 8, a major publicly traded BTC mining company.
How Hut 8 Sacrificed Bitcoin Mining For 80% Stake
On the other hand, the uncanny structure of this new American Bitcoin enterprise has raised some eyebrows among crypto market watchers. For example, Matthew Sigel, the Head of Digital Assets Research at VanEck, questioned the point of Hut 8 selling the rights to the production of their 61,000 Bitcoin (BTC) miners in exchange for an 80% stake in the new firm.
Naturally, other analysts also tried to wrap their head around the implications of this deal, expecting a 20% dilution of Hut 8 reserves. Besides, the American Bitcoin Corporation was first launched as the American Data Centers (ADC) by Donald Jr. and Eric Trumps, a branch of the wealth management conglomerate Dominari Holdings.
Sponsored
Later on, the major Bitcoin mining company Hut 8 donated their BTC mining software to the American Data Centers (ADC), thus acquiring a majority stake in the brand new company. While carving out a segment of their business just to land a deal with the Trump family on American Bitcoin sounds illogical, the stock of Hut 8 inked 2.25% gains following the news.
Bitcoin Price Swings Sideways: U.S. To Buy More?
The flagship crypto asset Bitcoin (BTC) has seen some drastic price swings over the past 24 hours, bumping off the key $82,200 floor thrice. After hitting intra-day heights of $84,400 in the afternoon this Tuesday, Bitcoinโs price backtracked to $82,200 and bounced off again, now standing at the highest point in 24 hours.
Briefly breaching past $85,000, Bitcoinโs (BTC) upcoming price trajectory continues to rely heavily on the geopolitical scene, as Donald Trumpโs implemented tariffs on foreign trade are being priced into crypto & stock markets. Namely, the positive momentum broke out after tongues were sent wagging about the White Houseโs intentions to buy more Bitcoins with their gold funds.
On The Flipside
- Despite the breakthrough in Bitcoin mining, possible recession fears could push Bitcoinโs price back to the $76,000 support, argues analysts.
- Despite the FED reserve predicting a contraction in Q1, the recession was downplayed as a โperiod of transitionโ by Donald Trump.
Why This Matters
A leading Bitcoin mining company joining forces with the United States Presidentโs family is unprecedented news for Bitcoin. While it can open doors for a more stable regulation of blockchain tech, big company moves could eventually lead to monopoly in the Bitcoin mining industry.
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