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Author: Li Dan, Wall Street News
Following the “core token” supported by the Trump family, the Trump family has come to the financial market to “make money” under the banner of the currency circle.
On Wednesday, Eastern Time, through a merger with its peer Gryphon Digital Mining, the Bitcoin mining and accumulation platform American Bitcoin was listed on the Nasdaq under ABTC as its stock trading code, and its stock price soared on the first day of trading.
In the early trading of the U.S. stock market, American Bitcoin once rose to $14.52, an intraday increase of more than 100%. Since then, most of the gains have been retold, closing at $8.04, and up about 16.5% at the close.Due to the large fluctuation of stock prices, stocks were suspended during the session.
American Bitcoin is owned by Donald Trump Jr. and Eric Trump, the eldest and second sons of U.S. President Trump.After completing the equity swap merger with Gryphon Digital Mining, Trump’s son and another Bitcoin miner Hut 8 Corp. hold a total of 98% of the company’s shares, and Gryphon’s previous investors hold the remaining shares.
American Bitcoin is the second major event this week when the Trump family pushed crypto assets into mainstream capital markets after the token of WLTI of cryptocurrency project World Liberty Financial was listed on multiple currency exchanges on Monday.Its listing is seen as the latest test of investors’ interest in cryptocurrency companies related to the Trump family.
A platform focusing on Bitcoin accumulation
American Bitcoin claims to be a Bitcoin accumulation platform focusing on building the major Bitcoin infrastructure in the United States. It is a subsidiary mainly controlled by Hut 8. It is positioned as a special Bitcoin accumulation platform and adopts a differentiated dual accumulation strategy.The company aims to maximize Bitcoin holdings per share through a combination of independent mining operations and opportunistic Bitcoin acquisitions.
Before its public listing, American Bitcoin had hoarded about 2,443 bitcoins, and its approach followed the so-called “corporate finance” strategy.The strategy is promoted by Michael Saylor, co-founder of MicroStrategy, a business intelligence software company that holds the most Bitcoins in the world.
According to American Bitcoin, through its partnership with Hut 8, the company acquires the next generation of ASIC technology and uses Hut 8’s large-scale hosting infrastructure platform to conduct Bitcoin mining without investing a lot of capital to build and operate proprietary data centers.American Bitcoin has mining equipment in New York, Alberta and Texas.
In June this year, American Bitcoin raised $220 million in cash and Bitcoin through private equity to investors including Gemini co-founder Winklevoss brothers, for purchases of more digital tokens and mining equipment.
Asher Genoot, executive director of American Bitcoin and CEO of Hut 8, said that by integrating Bitcoin mining, opportunistic market acquisitions and Hut 8’s energy and digital infrastructure support, the company has created an investment vehicle designed to drive fast and efficient Bitcoin growth per share.
The policy environment warms up and boosts the crypto market
Trump became a high-profile supporter of cryptocurrencies during his campaign and became the industry’s most influential advocate after taking office.He signed legislation that helped legalize a certain class of cryptocurrencies, created a state reserve of virtual assets, and appointed a more friendly regulator to the industry, ending an investigation into large cryptocurrency companies.
With the support of the Trump administration, Bitcoin trading prices fluctuated in the range of $1.08 million to $123,000 in the past two months.Trump’s two sons, Donald Jr. and Eric, appeared at cryptocurrency conferences around the world, praising the asset class.Last week, Eric Trump said before a Bitcoin conference in Hong Kong that cryptocurrencies are “the most rewarding career of my life.”
The transformation of government regulatory policies has created a favorable environment for listing of cryptocurrency companies, and the successful listing of American Bitcoin is achieved in this context.
“We have become a well-known name in the cryptocurrency space. American Bitcoin will be the greatest financial company of all time,” said Eric Trump, who was involved in the founding of American Bitcoin and serving as the company’s chief strategy officer this week.
Eric also called American Bitcoin’s debut on the Nasdaq a “historic milestone for Bitcoin to enter the heart of the U.S. capital market and advances our mission to make the U.S. an undisputed leader in the global Bitcoin economy.”
Trump’s family’s crypto territory continues to expand
The listing of American Bitcoin marks the latest expansion of the Trump family’s crypto empire.The family’s crypto business now covers mining operations, meme coins to stablecoins, and other fields.
On Monday, World Liberty Financial, which was backed by the Trump family, was traded online on mainstream crypto exchanges such as Binance, Bybit and OKX.
The opening price of WLFI was US$0.20, and it quickly soared to a high of about 40 cents within five minutes after the opening. It then turned down. It fell by more than 30% from the intraday high on Monday, and is currently up about 1% from the issue price. It ranks the 27th largest cryptocurrency in the world by market value.
World Liberty official website shows that Trump himself and his three sons were listed as the original co-founders of the project, but Trump has withdrawn from the relevant position after taking office as president.
The Trump family controls just under a quarter of WLFI, 22.5 billion through a shell company called DT Marks DEFI LLC, with a book value of $5 billion at Monday’s closing price. The token becomes one of the most valuable assets of the Trump family, far exceeding its traditional real estate investments such as hotels and golf courses.
It was mentioned earlier that the Trump family reached a special agreement with listed company Alt5 to make money without the rise and fall of token WLFI in the secondary market.Alt5 spent $1.5 billion to buy WLFI, of which 75% of the sales revenue belonged to the Trump family, instantly locking in hundreds of millions of dollars in cash.
Ethics lawyers and government regulators have expressed concerns about Trump’s business interests and family involvement in cryptocurrency businesses, especially as he relaxes regulation of crypto or currency industries.
