During a recent appearance on CNBC’s Squawk Box, Eric Trump characterized Bitcoin as a “modern-day gold,” emphasizing its potential as a liquid store of value capable of hedging against real estate and other financial assets. His remarks coincided with the launch of American Bitcoin, a mining and treasury firm he co-founded.
As outlined in public filings and company reports, American Bitcoin has amassed a significant holding of 2,443 BTC, which has been valued in the low hundreds of millions based on recent spot prices. The firm’s strategy revolves around large-scale mining coupled with the intent to retain Bitcoin as a strategic reserve. This approach aims to drive growth in both production and asset accumulation over time.
Trump’s statements highlighted a noticeable shift in how institutions view Bitcoin—not merely as a speculative asset, but increasingly as a legitimate alternative store of value. He cautioned businesses that are hesitant to adopt blockchain technology, suggesting that such resistance could be detrimental in the rapidly evolving financial landscape.
The public debut of American Bitcoin follows an all-stock merger with Gryphon Digital Mining earlier this year, which was designed to retain control among original shareholders while preparing the company for a listing on Nasdaq under the ticker ABTC. This merger has garnered attention due to the involvement of mining partner Hut 8, which owns a substantial stake, thus leaving the Trump family and other investors with a minority interest in the enterprise.
Market analysts note that the company’s listing sheds light on two prevailing trends: a movement among mining firms to both produce and retain Bitcoin, as well as the influence of political connections in drawing attention to cryptocurrency enterprises. Some experts caution, however, that holding substantial Bitcoin reserves on a corporate balance sheet could expose the company to significant price volatility. Conversely, supporters argue that this strategy aligns the interests of miners and investors.
Investor reactions to American Bitcoin’s launch have been mixed, with some expressing enthusiasm for a US-based miner committed to transparency and building reserves. Critics, on the other hand, have raised concerns over governance issues, potential conflicts of interest associated with high-profile backers, and the inherent risks of fluctuating cryptocurrency values.
As Eric Trump’s assertion that Bitcoin has supplanted gold in modern finance takes center stage, the future of American Bitcoin and its aligned strategy will largely depend on the responses from investors and institutions in the upcoming months.
