American Bitcoin, a company backed by the US president’s son Eric Trump and Donald Trump Jr., invested $314 million to acquire 16,299 Bitcoin miners from Chinese manufacturer Bitmain.
This acquisition stands out for its unusual structure. Payments are made in Bitcoin, not cash. Redeemable within two years at market price.
The funding model for Bitcoin miner purchases reflects the mining industry’s trend toward greater flexibility in the face of market volatility, according to documents filed with the U.S. Securities and Exchange Commission (SEC).
The acquisition of the miner comes after America’s Bitcoin and Bitmain formalized a strategic cooperation to acquire tens of thousands of Antminer U3S21EXPH equipment in August last year.. This equates to a total of 14 EH/s of computing power.the power level of one of the largest mining operations in North America.
The move comes months after Trump’s children merged American Data Centers Inc. into a new company called American Bitcoin, in which they retained a 20% stake. The remaining 80% belongs to Hut 8, one of the most integrated companies in the sector. 61,000 ASIC machines delivered to joint venturereported CriptoNoticias.
Bitcoin mining profitability has declined in recent months, but American Bitcoin’s bet shows a long-term vision. This is the hope for more efficient networks, greater control over energy infrastructure, and a new bullish cycle that will make mining attractive again.
American Bitcoin is currently the 32nd largest publicly traded company by BTC holdings. The entity has accumulated 2,443 Bitcoins to date.
The NASDAQ-listed company aims to become one of the largest public U.S.-owned Bitcoin mining entities.
(TAGtentranslate)Bitcoin (BTC)
