Eric Trumpโs stake in a four-month-old Bitcoin mining venture could be worth $US367 million ($570 million) when it goes public in coming weeks.
The second son of President Donald Trump holds a large stake in closely held American Bitcoin, which he co-founded in March. In a planned merger, his interest will be exchanged for about 367 million new shares of Nasdaq-listed Gryphon Digital Mining, according to a securities filing on Tuesday. Gryphon traded at about $US1 on Thursday. The combined company will be called American Bitcoin.
Donald and Eric Trump. Once a sceptic, the president says America is entering a โgolden age of crypto.โCredit: AP
The disclosure of the stakeโs size comes the same week that the president, a cryptocurrency sceptic-turned-cheerleader, issued recommendations to encourage the use of digital assets for a โgolden age of crypto.โ Earlier this year, he ordered the establishment of a national Bitcoin stockpile.
โNeither the President nor his family have ever engaged, or will ever engage, in conflicts of interest,โ Karoline Leavitt, the White House press secretary, said in a statement. Spokespeople for Eric Trump and Gryphon didnโt respond to messages seeking comment
A recent private sale of existing American Bitcoin stock implied the new shares are worth 25 cents apiece, the filing noted. That would peg Eric Trumpโs stake at $US92 million.
American Bitcoin was formed in March by combining the mining computers owned by a Miami-based company, Hut 8 Corp., with a newly formed entity whose investors included Eric Trump and Donald Trump Jr. Securities filings donโt show what they paid for their stakes. A spokesperson for Hut 8 declined to comment.
โNeither the President nor his family have ever engaged, or will ever engage, in conflicts of interest.โ: White House press secretary Karoline Leavitt.Credit: AP
Announcing the tie-up, Hut 8 said the deal would combine Hut 8โs existing mining operations with โEric Trumpโs commercial acumen, capital markets expertise and commitment to the advancement of decentralised financial systems.โ
Eric Trump, who remains an executive at his fatherโs real estate business and is involved with several other family ventures, is serving as โchief strategy officerโ of American Bitcoin. He has a three-year advisory agreement that doesnโt come with compensation, the filing shows.
