Trump Family-Backed Bitcoin Miner American Bitcoin Set to Go Public
American Bitcoin, a Bitcoin mining firm backed by the Trump family, is set to go public through a merger with Gryphon Digital Mining. This strategic move is expected to enhance the company's growth potential and market presence in the cryptocurrency sector.
Key Takeaways
- American Bitcoin will merge with Gryphon Digital Mining in a stock-for-stock transaction.
- The new entity will operate under the American Bitcoin brand and is expected to trade on Nasdaq under the ticker "ABTC."
- Existing shareholders of American Bitcoin will retain approximately 98% ownership of the new company.
- The merger is anticipated to close in the third quarter of 2025.
Overview of the Merger
On May 12, 2025, American Bitcoin announced its merger with Gryphon Digital Mining, marking a significant step in its journey to become a publicly traded entity. The merger will allow Gryphon to acquire American Bitcoin, which is a majority-owned subsidiary of Hut 8, a prominent player in the cryptocurrency mining industry.
The merger is structured as a stock-for-stock transaction, which means that Gryphon will exchange its shares for those of American Bitcoin. Following the completion of the merger, the combined company will adopt the American Bitcoin name and will be led by its existing board of directors, which includes Eric Trump.
Market Reaction
The announcement of the merger had an immediate impact on the stock market. Shares of Hut 8 Corp. surged by 12% in pre-market trading, while Gryphon Digital Mining's stock skyrocketed by over 200%, reflecting investor enthusiasm about the merger and the potential for growth in the Bitcoin mining sector.
Strategic Goals
Asher Genoot, CEO of Hut 8, emphasized that the merger aims to position American Bitcoin as a dedicated vehicle for low-cost Bitcoin accumulation. He stated, "By taking American Bitcoin public, we expect to unlock direct access to dedicated growth capital independent of Hut 8’s balance sheet."
This strategic move is expected to provide American Bitcoin with the necessary resources to scale its operations and enhance its market competitiveness. The company plans to focus on efficient Bitcoin mining practices while building a robust strategic Bitcoin reserve.
Ownership Structure Post-Merger
After the merger, the ownership structure will favor existing shareholders of American Bitcoin, who will hold approximately 98% of the newly formed company. Hut 8 will maintain its majority ownership and will continue to serve as the exclusive infrastructure and operations partner for American Bitcoin.
This arrangement is designed to ensure stability and continuity in operations, allowing American Bitcoin to leverage Hut 8's established infrastructure and expertise in the cryptocurrency mining space.
Conclusion
The merger between American Bitcoin and Gryphon Digital Mining represents a significant development in the cryptocurrency mining industry, particularly with the backing of the Trump family. As the market for Bitcoin continues to evolve, this strategic partnership is poised to enhance American Bitcoin's growth trajectory and solidify its position as a leading player in the sector. Investors and industry watchers will be keenly observing the progress of this merger as it unfolds in the coming months.