American Bitcoin To Go Public with Gryphon Merger
By: Isha Das
American Bitcoin, a prominent Bitcoin mining firm with Trump family affiliations, is on the verge of becoming a publicly traded company through a strategic merger with Gryphon Digital Mining. This stock-for-stock transaction is set to allow American Bitcoin to take over Gryphon’s public listing on the Nasdaq exchange, anticipated to trade under the ticker 'ABTC' by the third quarter of 2025. This marks a significant move in the crypto industry, where the fusion of two entities aims to bolster their market presence and financial capabilities.
As outlined in the merger details, shareholders of American Bitcoin will retain approximately 98% of the combined entity, ensuring majority interest post-merger. The new company, poised to operate under the American Bitcoin name, will be steered by a high-profile board inclusive of Eric Trump and other key executives such as Mike Ho and Justin Mateen. Hut 8, the majority owner of American Bitcoin, will transition its focus towards providing infrastructure services under long-term agreements, maintaining a beneficial ownership interest in the process.
The merger represents a mode of financial strategy where American Bitcoin, originally formed from the assets of American Data Centers Inc. by Donald Trump Jr. and Eric Trump, seeks to fortify its position as a national Bitcoin reserve builder and miner. This initiative underlines its capital-light operational framework while aiming for efficient Bitcoin accumulation below market value, instead of being solely reliant on hashrate metrics. In context, the transaction is designed to secure access to capital markets independent of Hut 8’s balance sheet, potentially expediting strategic financing.
The announcement of the merger stood as a significant catalyst in the financial markets, with Gryphon Digital Mining's stock price reflecting a staggering rise of over 313% following the news dissemination. This favorable market reaction underscores investor enthusiasm for Bitcoin-centric public ventures during an era where Bitcoin’s value remains near its all-time highs, hovering above $104,000 as of late April. By avoiding the typical pitfalls associated with IPOs, the merger provides a streamlined path for American Bitcoin’s debut in public trading, ensuring operational control and strategic alignment.
