The name “American Bitcoin” clearly communicates the company’s focus.
“Ultimately, we are a U.S.-based company that mines Bitcoin within the United States, and we’re enthusiastic about this digital asset,” stated Eric Trump, Chief Strategy Officer, during an interview held at Trump Tower in Midtown Manhattan this past Tuesday.
American Bitcoin, co-founded by Eric Trump and Donald Trump Jr., began trading publicly this September. This followed its completed merger with Gryphon Digital Mining, a firm specializing in cryptocurrency mining operations.
Since the merger, stock values have increased by approximately 12%. Another Bitcoin mining enterprise, Hut 8, holds a controlling share in the company.
Investors interested in “Bitcoin Treasury” firms, those that maintain Bitcoin as a corporate asset, have several publicly traded options. These include names like MicroStrategy, GameStop, Tesla, and even Trump Media & Technology Group. Beyond the Trump family’s involvement, it remains to be seen what distinguishes American Bitcoin from these other choices.
Currently, the stock’s performance seems driven more by market enthusiasm and industry hype than by underlying value. According to official documents, American Bitcoin possessed 2,443 Bitcoins as of early September. Using present-day prices, this holding is worth approximately $285 million—considerably less than American Bitcoin’s market capitalization of over $7 billion.
Asher Genoot, Executive Chairman of American Bitcoin and CEO of Hut 8, informed Barron’s that the company aims to leverage its mining proficiency to produce Bitcoin at significantly lower costs than the average spot market price. The company also plans to secure inexpensive capital to acquire more Bitcoin, emulating MicroStrategy’s business model. This strategy could potentially bolster the company’s prospects.
Eric Trump further noted that American Bitcoin’s objective is to introduce a more “sensible and modern perspective to the crypto space” and to facilitate broader access for everyday investors.
This is already underway, partly due to the introduction of spot Bitcoin exchange-traded funds (ETFs) by major players like BlackRock’s iShares and Fidelity, as well as brokerage platforms such as Coinbase, Robinhood, and the recently listed Gemini. (Gemini’s co-founders, Cameron and Tyler Winklevoss, also have invested in American Bitcoin.)
“The expansion of crypto surpasses that of the internet. This isn’t hyperbole,” Eric Trump stated. “It’s experiencing rapid growth.”
Furthermore, the recent resurgence in Bitcoin and other digital currencies might not have transpired had Washington’s regulatory stance remained as stringent as it was under the previous administration. Gary Gensler, who led the Securities and Exchange Commission (SEC) during President Joe Biden’s term, was regarded as strongly opposed to crypto. However, a noticeable shift in policy has occurred under the current SEC leadership of Paul Atkins.
Eric Trump believes that the current trajectory is irreversible, regardless of Washington’s political landscape.
“That opposition is fading. The advancement has gone too far,” he commented.
This may well be accurate. The widespread investment in Bitcoin and blockchain technology by established financial institutions suggests that supporting crypto should no longer be a politically divisive issue.
However, financial metrics remain objective. To justify its substantial valuation, the company may need to acquire a significantly larger Bitcoin reserve in the United States.
Contact Paul R. La Monica at paul.lamonica@barrons.com