Eric Trump Leads American Bitcoin To Strong IPO
American Bitcoin Soars 17% on Nasdaq Debut With Eric Trump’s Leadership
American Bitcoin (ABTC) – a Bitcoin mining and investment company co-founded by Eric Trump – made an impressive debut on the Nasdaq, with shares climbing nearly 17% to close at $8.04 on the first trading day, after touching an intraday high of around $14.
The IPO drew strong attention, with 29 million shares traded, a notable figure compared to other recent crypto listings. For reference, Circle and Bullish saw 46 million and 58 million shares traded on their first day, respectively. The results highlight strong investor interest in a crypto venture tied to the Trump family.
Eric Trump’s Role at American Bitcoin
Eric Trump, the second son of former U.S. President Donald Trump, serves as Chief Strategy Officer. In an interview with Bloomberg, he emphasized the company’s cost advantage:
“We have one of the most efficient mining operations, with costs of about $0.50 for every $1 of Bitcoin’s actual value.”
Eric also revealed that the firm owns “hundreds of millions of dollars in tangible assets and data centers,” giving it an edge over simply buying Bitcoin on the open market. According to Bloomberg, Eric Trump’s stake in American Bitcoin is now valued at over $500 million, marking a major step in the Trump family’s expansion into digital assets.
Business Model and Ownership Structure
Founded in March with backing from Eric and Donald Trump Jr., American Bitcoin operates on a hybrid model of Bitcoin mining and investment. Last month, shareholders of Gryphon Digital Mining approved a merger with American Bitcoin, creating a new crypto mining joint venture.
In June, the company raised $220 million via a private placement of 11 million shares to fund mining expansion. Currently, Hut 8 owns 80% of American Bitcoin, while the remaining 20% is held by American Data Centers, a Trump-backed entity.
Asher Genoot, CEO of Hut 8 and Executive Chairman of American Bitcoin, explained:
“By combining Bitcoin mining, opportunistic market purchases, and Hut 8’s energy and infrastructure backing, we’ve created a vehicle designed to accelerate Bitcoin growth per share efficiently.”
Trump Family’s Other Crypto Ventures
American Bitcoin is not the Trump family’s only foray into crypto. Both Eric and Donald Trump Jr. are involved in World Liberty Financial (WLFI) – a DeFi project inspired by Donald Trump. Donald Jr. has also invested in Polymarket, joining its board, and holds equity in Thumzup, a social media company that pivoted into a crypto treasury model.
Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.