The family of U.S. President Donald Trump is set to enter the Bitcoin mining business.
On the 31st (local time), The Wall Street Journal (WSJ) reported that American Data Center (ADC), an artificial intelligence (AI) infrastructure company founded by President Trump's eldest and second sons, Donald Trump Jr. and Eric Trump, is launching a Bitcoin mining company called American Bitcoin.
ADC will merge with cryptocurrency infrastructure company HUT8's Bitcoin mining division. American Bitcoin, which plans to operate 61,000 Bitcoin miners, is expected to become the world's largest Bitcoin mining company, according to the Trump family.
ADC, operated by Donald Trump Jr. and Eric Trump, will own a 20% stake in the newly launched American Bitcoin. Donald Trump Jr. and Eric began actively investing in cryptocurrencies around the time of last year's presidential election.
After launching the virtual asset platform World Liberty Financial (WLF) in September last year, they sold meme coins associated with President Trump and his wife. The sales revenue reached $550 million.
The operator of Truth Social, the social networking service (SNS) founded by President Trump, also announced plans to invest up to $250 million in cryptocurrencies and related assets.
President Trump declared his intention to make the United States the capital of cryptocurrency and, shortly after taking office, issued an executive order directing the strategic reserve of virtual assets. The strategic reserve means that the government will hold onto Bitcoins seized from criminals instead of selling them.
In this context, as the Trump family expands into the Bitcoin mining sector, concerns about potential conflicts of interest are growing stronger. Critics argue that it is inappropriate for the Trump family to expand investments in the cryptocurrency sector while the cryptocurrency market surges every time President Trump announces pro-cryptocurrency policies.
However, the Trump family maintains that their investment in the cryptocurrency sector is merely a diversification of their portfolio. Eric said, "The Trump family's assets are concentrated in real estate," adding, "I believe the best risk diversification for the real estate business is cryptocurrency."
In response, Richard Painter, who served as chief ethics lawyer in the White House Counsel's Office during the George W. Bush administration, pointed out that President Trump caused conflicts of interest during his first term through investments in golf courses and hotels, and said, "This time, he is using cryptocurrency. The ripple effects on the overall economy could be even greater."
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