Eric Trump and Donald Trump Jr. have seen their investment in American Bitcoin skyrocket to an estimated value of over $1.5 billion following the company’s impressive stock market debut on Wednesday. The bitcoin-mining firm made headlines as its shares surged, reaching a peak of 110% higher intraday before ultimately closing the day up 16.5% at $8.04.
Currently, approximately 20% of American Bitcoin is owned by the Trump brothers, a significant amount according to Asher Genoot, the company’s executive chairman. At the stock’s apex on Wednesday, their combined stake was valued at an impressive $2.6 billion. This milestone follows the company’s merger with Gryphon Digital Mining that was finalized in March, setting the stage for its entry onto the Nasdaq.
The ownership landscape of the merged company shows Eric Trump, Donald Trump Jr., bitcoin miner Hut 8, and other shareholders controlling around 98% of American Bitcoin, with Gryphon retaining the remainder. “Crypto is exploding,” Eric stated, emphasizing the importance of the cryptocurrency sector in their business endeavors. He also noted that approximately 50% of his current work revolves around cryptocurrency, demonstrating a pronounced shift from the family’s traditional focus on luxury real estate and international golf courses.
In a bid to bolster international relationships within the crypto market, Eric has traveled extensively this year, visiting major cities such as Dubai, Hong Kong, and Tokyo. World Liberty Financial, recognized as the Trump Organization’s leading venture in the crypto space, has reportedly generated around $500 million for the family since its launch last year. Their recent foray into digital tokens yielded a potential $5 billion increase in paper wealth, as noted by the Wall Street Journal.
Moreover, the Trump Media & Technology Group and Crypto.com recently secured a partnership aimed at launching a treasury-style strategy for acquiring the digital token CRO. Earlier this year, former President Donald Trump also ventured into the meme coin market, introducing tokens featuring his likeness alongside that of First Lady Melania Trump.
Despite facing criticism over potential conflicts of interest, Eric Trump has rebuffed such claims, asserting that his father is disconnected from these business initiatives, focusing solely on his presidential duties. “My father has absolutely nothing to do with this venture,” Eric affirmed, explaining that the president is uninvolved in their business activities.
As co-founder and chief strategy officer of American Bitcoin, Eric considers himself a spokesperson for the crypto industry. He reflects on the challenges the sector has faced in effectively communicating its message and believes he has emerged as a prominent advocate over the past year and a half.
In a strategic move, American Bitcoin announced plans to sell $2.1 billion worth of shares to fund further investments in bitcoin and mining machinery. The process of bitcoin mining involves complex computing procedures to release new bitcoins into circulation, with only 21 million bitcoins set to ever exist. As over 90% of these have already been mined, competition among investors for the remaining bitcoins intensifies.
Eric expressed confidence in American Bitcoin’s future, predicting, “American Bitcoin is going to be the greatest treasury company ever built.” The company has reportedly accumulated approximately 2,443 bitcoins to date, supported by a $220 million funding round earlier this year from notable investors, including the Winklevoss twins, who co-founded the crypto exchange Gemini. These funds have already facilitated additional acquisitions of digital tokens and mining equipment, furthering the company’s ambitions in the rapidly evolving cryptocurrency landscape.
