The Trump family has now established itself as a key player in the cryptocurrency ecosystem. This multifaceted strategy has just led to a $160 million purchase of BTC for its mining and treasury company, American Bitcoin.
American Bitcoin Purchases an Additional 1,414 BTC
Donald Trump’s pro-crypto presidential campaign has sparked a surge in family-run projects with varying degrees of direct ties to this ecosystem. One of these involves the mining company American Bitcoin, which recently went public on the Nasdaq in early September.
The company was formed through the merger last March between American Data Centers—owned by Trump’s sons—and the mining firm Hut 8, which caused ABTC stock to surge by more than 200% before stabilizing at an average of around $6.
ABTC stock price of American Bitcoin
However, this company’s business is not limited to mining BTC. In fact, it also involves accumulating Bitcoin as part of a treasury strategy that includes regular purchases.
An additional 1,414 BTC has just been added to this reserve, acquired for $160 million. As a result, American Bitcoin’s cash reserves now total 3,865 BTC, valued at $442.5 million at the current BTC price.
A return associated with the “Satoshis Per Share” ratio
According to Eric Trump’s statement on X, this latest purchase is just a warm-up. Indeed, he says he is “incredibly excited about ABTC” and what they are building with his brother, Donald Trump Jr.
This enthusiasm is also shared by Asher Genoot, the company’s executive chairman, who explains that “by producing BTC directly, [they can] reduce [their] average cost per Bitcoin to gain an advantage over entities that buy exclusively on the open market.” This is especially true when applying a “Satoshis Per Share” (SPS) calculation.
As part of its ongoing commitment to providing investors with greater visibility into shareholder value, American Bitcoin will now publish periodic updates on the “Satoshis Per Share” (SPS) ratio, an indicator representing the amount of Bitcoin attributable to each of the company’s outstanding common shares.
This new unit of measurement allows ABTC shareholders to gain insight into their indirect ownership of BTC, with a rate currently set at 418—representing a 52% increase since September 1, according to details in the press release.
Chart showing the ‘Satoshis Per Share’ (SPS) calculation
With this new BTC purchase, American Bitcoin announces its official entry into the Top 25 of the largest publicly traded companies holding Bitcoin. This spot has since been taken by Gemini Space Station with its 4,002 BTC, according to the Bitcoin Treasuries website’s ranking.
