Bitcoin mining has gained a notable connection to the Trump family through a new venture, American Bitcoin, which is backed by Eric Trump and Donald Trump Jr. The company made its debut on the Nasdaq, having merged with a small-cap miner, thus circumventing the traditional IPO process. Initial trading began around $8 per share, allowing the stock price to surge to approximately $13 before retracting to about $10 by midday, temporarily boosting its market capitalization to approximately $7.5 billion, as reported by 99Bitcoins.
However, the excitement did not last long. By Thursday noon, the stock price had fallen to around $6.35, raising alarms among investors and prompting speculation about whether this could be another instance of the Trump family engaging in what some are calling a “rug pull.”
Eric Trump took the opportunity to clarify his ambitions for the project, stating, “This is my baby,” emphasizing the uniqueness of American Bitcoin in a crowded market of crypto treasury companies. The venture’s strategy is threefold: to mine Bitcoin through the establishment and expansion of traditional data centers, to accumulate Bitcoin using public market access, and to leverage the Trump brand to amplify value.
Trump remarked, “When you see the facilities, [American Bitcoin] has a real skeleton, it has the backbone,” suggesting it offers a more solid foundation compared to typical crypto projects that emerge from casual brainstorming sessions.
After experiencing a sharp sell-off, American Bitcoin is currently attempting to stabilize around a support level of $6.40, with further decline expected if this floor does not hold. Resistance is observed at $6.70–$6.80, essential for bullish investors hoping to see a price rebound.
The current state of Bitcoin mining is challenging, characterized by heightened competition, record-high hashrate levels, and elevated energy costs. Despite these hurdles, American Bitcoin is promoting a partnership with Hut 8, which may provide below-market power agreements. Yet, the competitiveness is intensified as states like Texas continue to thrive as prime mining hubs, capitalizing on deregulated energy markets.
Potential developments in nuclear energy, emphasized by a recent executive order signed by Trump to promote nuclear expansion, could be advantageous for American Bitcoin if permits and infrastructure align favorably.
In discussing Bitcoin itself, Eric Trump characterized it as “truly digital gold,” asserting it as a commodity whose supply can never increase. The introduction of American Bitcoin intertwines volatile elements: mining exposure, treasury strategy, and political influence, leading to speculation about whether energy partnerships and the Trump surname can sway market dynamics favorably.
As trading continues, investors are left contemplating the long-term viability and integrity of the venture amid broader market uncertainties.
