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Winklevoss Twins Invest in a New Bitcoin Mining Venture
Renowned Bitcoin billionaires, Cameron and Tyler Winklevoss, have embarked on a new venture in cryptocurrency mining with connections to the Trump family, as reported by Bloomberg. The venture, American Bitcoin Corp., was initiated earlier this year and is associated with Eric Trump and Donald Trump Jr.
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The exact amount the Winklevoss twins invested remains undisclosed. However, according to Hut 8 Corp. CEO, Asher Genoot, their investment was part of a $220 million private placement that recently concluded. This funding, which comprised both cash and Bitcoin, was described as oversubscribed during Hut 8’s latest earnings call.
Strengthening Political and Cryptocurrency Alliances
This collaboration marks another intersection between the Winklevoss twins and the Trump family. The twins have previously supported President Donald Trump’s campaign and participated in a White House crypto summit in March, signaling their active engagement in the political and cryptocurrency arenas. Genoot mentioned that the structural framework of the company would provide the necessary scale and capital to thrive in the competitive Bitcoin mining industry.
Trump Family’s Strategic Role with Hut 8
Launched in March, American Bitcoin Corp. is a joint venture with Hut 8, which holds an 80% stake. The remaining 20% is owned by American Data Centers, a company backed by Eric Trump and Donald Trump Jr. Eric Trump also serves as the strategic planning director for the company. Based on earlier Bloomberg reports, Eric Trump’s stake might be valued at up to $367 million once the company goes public.
The company intends to make its public debut through an all-stock merger with Nasdaq-listed Gryphon Digital Mining Inc., under the ticker “ABTC.” Gryphon’s shareholders have initiated voting on the merger, and if approved, the deal is expected to be finalized by early September. American Bitcoin Corp. aims to focus on Bitcoin mining and holding, aiming to build a substantial long-term reserve from its production.
The Winklevoss twins, known for their Gemini crypto exchange, reportedly made their contribution in Bitcoin. A Gemini representative declined to comment on the specifics of the investment.
Intensifying Competition in the Mining Sector
With a $220 million capital raise, American Bitcoin Corp. is poised for aggressive expansion. A filing from Hut 8 indicates that approximately $10 million of newly issued equity was exchanged for Bitcoin rather than cash, highlighting the company’s strategy to directly accumulate the cryptocurrency. Donald Trump Jr. has articulated that both mining and holding Bitcoin are central to the company’s long-term growth strategy.
As the cryptocurrency landscape continues to evolve, partnerships like these between influential figures and innovative companies are likely to shape the future of digital assets. The Winklevoss and Trump families’ involvement underscores the growing intersection of politics and cryptocurrency, paving the way for new opportunities and challenges in the industry.
