Hut 8 has been mining Bitcoins for a long time. revealed a partnership that includes two members of the Trump family — Donald Jr. and Eric — and its plans to launch a new mining venture, American Bitcoin.
Exclusive Interview on Cointelegraph Decentralize Asher Genoot (CEO of Hut 8) shared some new information in his Byte Sized Insights Series. He discussed the vision for the venture, why now was the time, and how they plan to grow.
Right team at the right time
“We’ve thought about splitting out our Bitcoin mining and energy infrastructure businesses for some time,” Genoot said. “Meeting Eric and Don Jr., and seeing their deep passion for Bitcoin and infrastructure, was the perfect catalyst.”
Genoot says the objective is simple: build the biggest and most efficient Bitcoin miner in the World, on American soil. This will align with the pro-Bitcoin sentiment that’s growing under the Trump administration. “Eric told me, ‘I don’t want to get involved in anything that isn’t the biggest and the best,'” “He said”
This move is made at an important time for US mining. After the crackdown in China, which will end after 2021, the US is now exploring the idea for a Bitcoin Reserve. This has transformed America’s position within the global mining eco-system.
Size isn’t the only thing that matters. Genoot stressed that cost effectiveness and efficiency are the core of this strategy.
“We don’t want to just be the biggest. We want to be the most efficient and cost-effective miner. If our cost basis isn’t low, we might as well just buy Bitcoin.”
Related: Bitcoin miner Hut 8 argues to toss ‘short and distort’ shareholder suit
BTC mining and accumulation
American Bitcoin has a structure that allows them to mine BTC for low costs, collect more BTC when market conditions allow, and possibly expand into other Bitcoin services. Hut 8 has over 10,000 BTC in its account, which could be worth $1 billion if the market is good. American Bitcoin wants to exceed that.
It’s also bullish about power consumption. Genoot has reacted to the criticism that bitcoin mining uses a lot of energy.
“Power consumption has only increased with every tech revolution. Cheap, excess energy is what drives Bitcoin mining — and a lot of that energy is renewable.”
Hut 8 Mining’s spin-off company has ambitious plans for the future. “Our focus is scaling. Our focus is taking this company public on a US exchange,” Genoot said. “You’ll hear more from us soon.”
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Source: cointelegraph.com
