Winklevoss Twins Invest in Trump Family-Linked Mining Venture American Bitcoin

Winklevoss twins invest in Trump family-linked mining venture American Bitcoin

Summary:
Cameron and Tyler Winklevoss, co-founders of Gemini, have made a private investment in American Bitcoin Corp., a mining company partly owned by Eric and Donald Trump Jr. This investment reflects the increasing collaboration between the Winklevoss twins and the Trump family, raising discussions in political circles and within the cryptocurrency community.

Key Takeaways:

The Winklevoss twins have invested in American Bitcoin Corp., a mining company associated with the Trump family.
The investment is part of a larger private placement that raised around $220 million.
American Bitcoin is set to go public through a merger with Gryphon Digital Mining.
The twins have a history of supporting Trump and have attended multiple White House events.
Their involvement appears to have influenced political decisions related to cryptocurrency regulation.

Investment Details

Cameron and Tyler Winklevoss, known for founding the cryptocurrency exchange Gemini, have made an undisclosed investment in American Bitcoin Corp. This mining firm has ties to the Trump family, specifically through Donald Trump's sons, Eric and Donald Jr. Asher Genoot, CEO of Hut 8, which is involved in the venture, shared with Bloomberg that the fundraising effort was “oversubscribed,” suggesting high interest in the investment opportunity.

Genoot revealed that the Winklevoss twins used Bitcoin for their investment, although he did not disclose the precise amount. Overall, the private placement generated around $220 million in total cash and Bitcoin proceeds, which American Bitcoin plans to use to acquire assets and expand its mining operations.

Growing Ties with the Trump Family

This investment strengthens the growing connections between the Winklevoss twins and the Trump family. The twins have participated in various White House events over the years, including a digital assets summit in March and a July ceremony for the GENIUS Act, which aims to establish regulatory frameworks for payment stablecoins. During one of these events, President Trump acknowledged the twins for their contributions.

Furthermore, the Winklevosses have made significant donations to the Trump 2024 campaign and have supported pro-Trump political committees. Their political engagement and financial ties have drawn attention from Washington insiders.

Political Implications

In July, Politico highlighted that the Winklevoss twins might have impacted the White House's decision regarding the nomination of Brian Quintenz as chair of the U.S. Commodity Futures Trading Commission. A vote on Quintenz, originally planned by the Senate Agriculture Committee, was postponed, reportedly at the request of the White House.

While there was no confirmation of direct influence by the twins on this delay, media reports noted their prior support for Quintenz after Trump announced the nomination. The reasons for the postponement remain unclear, and neither the White House nor the Winklevoss twins have commented publicly about the situation. The nomination is expected to be revisited when lawmakers reconvene later this year.

Company Background and Strategy

American Bitcoin Corp., partially owned by Eric and Donald Trump Jr., was formed following a restructuring of Hut 8's U.S. mining operations. Hut 8 transferred its U.S.-based mining assets and equipment into this new entity in exchange for an 80% stake, while the Trump brothers retained their shares through a related organization.

The company has made plans to go public by merging with Gryphon Digital Mining, which is already listed on Nasdaq. This deal is anticipated to finalize in early September, and Bloomberg suggests that Eric Trump's stake could be valued at approximately $367 million once the merger is complete.

American Bitcoin focuses on establishing long-term value through two main strategies: lowering Bitcoin mining costs below market rates and steadily growing its direct cryptocurrency holdings. As reported in June, the company holds a reserve of 215 BTC, valued at nearly $24 million, safeguarded with Coinbase Custody. American Bitcoin opts to contract its mining operations rather than directly owning all infrastructure, a strategy designed to keep overhead costs low and enable rapid scaling.