A Chinese technology company, Bitmain, has provided unusually favorable terms to American Bitcoin Corporation, a firm partially owned by Eric Trump, for purchasing advanced mining equipment. SEC filings reveal the deal involves pledged bitcoin payments redeemable over two years, raising concerns about potential influence on the Trump administration. Experts highlight the arrangement's unusual nature amid national security worries over Bitmain's technology.
American Bitcoin Corporation, founded in March 2025 just two months after Donald Trump's inauguration, is partially owned by Eric Trump with a 7.5% stake. The company, majority-owned by Hut 8 and based in Miami, went public on Nasdaq on September 3, 2025, amid significant publicity. SEC filings show American Bitcoin is acquiring more than 16,000 advanced mining machines from Bitmain, paying with "pledged" bitcoin redeemable up to two years from now at current prices.
An industry expert, briefed on the deals, described Bitmain's terms as unique, involving little money down and an extended redemption period. This contrasts with Bitmain's May announcement offering only a six-month redemption for other customers. A company press release stated that "preferential access" to Bitmain's technology is "central to American Bitcoin’s ability to maintain a structural cost advantage."
At a May bitcoin conference in Las Vegas sponsored by Bitmain, American Bitcoin president Matt Prusak emphasized the political dimensions of the industry: "If you think you’re in the energy business or compute business or bitcoin business you’re half right. Underneath it all you’re in the business of politics, in the politics business."
Bitmain, in a statement to The Guardian, clarified that its technical cooperation is with Hut 8 for one type of mining machine and that it offers pledged bitcoin to others, though with shorter terms. Hut 8 spokesperson Gautier Lemyze-Young confirmed the 24-month window but said the terms were set in September 2024, before American Bitcoin's launch; the transaction was revealed in August 2025.
Finance professor James Angel called the terms "pretty unusual," noting the option to buy back at a discount and questioning if Bitmain seeks special treatment due to Trump family ties. Law professor Eric Chaffee described it as potentially a "sweetheart deal" to curry influence, though full facts are unknown. A former executive, speaking anonymously, said Trump involvement was known in advance for its White House access benefits.
Concerns about Bitmain's national security risks persist; Republican congressman Zachary Nunn urged a Treasury review last month, stating American families deserve protection from foreign entities with opaque ties. Bitmain responded that it complies with U.S. laws and poses no risks. Eric Trump, promoting the company at forums, claimed it arose from being "debanked" after the January 6, 2021, Capitol riot and predicted bitcoin reaching $1 million.