Bitcoin mining start-up backed by Donald Trump's sons to go public

A bitcoin mining start-up backed by US President Donald Trump's two eldest sons announced plans on Monday to go public on the New York Stock exchange via a merger.

A bitcoin mining start-up backed by US President Donald Trump's two eldest sons announced plans on Monday to go public on the New York Stock exchange via a merger.

American Bitcoin made a deal to be acquired by publicly traded Gryphon Digital Mining Inc in a stock-for-stock merger transaction.

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The combined company will operate as American Bitcoin, trading under the symbol "ABTC" and is to be led by American Bitcoin's management team, according to a release.

"Our vision for American Bitcoin is to create the most investable bitcoin accumulation platform in the market," said co-founder and chief strategy officer Eric Trump, son of the US president.

Florida-based Hut 8 Corp. (TSX: HUT) launched American Bitcoin earlier this year in partnership with Eric Trump.

The stated goal of the business was to build the world's largest "pure play" bitcoin mining operation along with a strategic reserve for cryptocurrency.

Bitcoin mining involves using computing power to solve complex mathematical problems in order to validate transactions on the bitcoin blockchain.

"Taking American Bitcoin public is a critical step toward scaling the business at the pace and magnitude we envision," Hut 8 chief executive Asher Genoot said in the statement.

The merger could be completed by October, according to the company.

The Trump family's business ventures involving cryptocurrency have raised questions regarding conflicts of interest for the president.

The Trump family has become increasingly involved in the cryptocurrency sector.

US crypto investors were major supporters of Trump's presidential campaign, contributing millions of dollars toward his victory in hopes of scaling up the administration of his predecessor, Democrat Joe Biden, who is largely skeptical of digital currencies.

Now, Trump has significant financial ties to the sector, having partnered with exchange platform World Liberty Financial and launching a "Trump" memecoin in January.

Donald Trump will host the biggest holders of the eponymous meme coin for a dinner, the company overseeing the currency said in late April, sending its price surging.

First Lady Melania Trump also launched memecoin of her own, $MELANIA.

And President Trump has signed an executive order establishing a "Strategic Bitcoin Reserve" as well as appointed a crypto advocate to head the Securities and Exchange Commission.

Once hostile to the crypto industry, the president has taken significant steps to clear regulatory hurdles.

However, progress of crypto legislation backed by Trump has struggled in Congress, with Democratic legislators having raised concerns about Trump's business interests in the sector.