American Bitcoin, a mining and treasury company with ties to the Trump family, has seen its share price jump by approximately 12% to $1.38 following the announcement of a major expansion of its mining operations. The company revealed that it has deployed an additional 11,298 bitcoin mining ASICs at its site in Drumheller, Alberta, Canada, bringing its total fleet to around 89,242.
This move is expected to increase the company's mining capacity by 3.05 exahash per second, with an efficiency rating of 13.5 joules per terahash. The high efficiency of the new mining rigs is crucial in reducing electricity costs and maintaining profitability amid rising network difficulty. According to the company, scaling its hashrate is a key strategy for strengthening its position in the bitcoin market. Eric Trump, co-founder and chief strategy officer, stated that the swift deployment of the new miners demonstrates the company's commitment to leading the industry through disciplined capital allocation and efficient growth.
The expansion is part of a previously announced plan to increase the company's mining capacity, underscoring its dedication to bitcoin mining despite the pivot of some other miners towards artificial intelligence and data centers. Recently, American Bitcoin has also been expanding its bitcoin holdings, reaching 6,899 by March 18 and overtaking Mike Novogratz's Galaxy Digital to become the 16th-largest bitcoin holder, before further increasing its treasury to 7,000 by March 30.