Main Points:
- American Bitcoin to go public via an all-stock merger with Gryphon Digital Mining, trading under ticker “ABTC.”
- Existing shareholders—including the Trump family, American Data Centers, and Hut 8—retain approximately 98% ownership post-merger.
- The merger is expected to close in Q3 2025, subject to customary approvals.
- Leadership will feature Mike Ho as Chairman, Matt Prusak as CEO, and Eric Trump as Chief Strategy Officer.
- Gryphon shares spiked over 170% and Hut 8 shares rose about 12% in response to the announcement.
Background of the Merger
American Bitcoin—a joint venture formed earlier this year by cryptocurrency miner Hut 8 Corp. (Nasdaq: HUT) and American Data Centers, the Trump family–backed infrastructure firm—is set to merge with Nasdaq-listed Gryphon Digital Mining (Nasdaq: GRYP). Under the all-stock, tax-free transaction, Gryphon will acquire American Bitcoin, and the combined entity will operate under the American Bitcoin brand with the ticker “ABTC” on Nasdaq. Upon closing, existing American Bitcoin stakeholders (primarily the Trump family and Hut 8) will own about 98% of the merged company, while Gryphon shareholders will hold the remaining 2%. The deal aims to be finalized in the third quarter of 2025, pending regulatory and stockholder approvals.
Strategic Rationale and Business Model
Hut 8’s CEO Asher Genoot has emphasized that spinning out American Bitcoin into a standalone public company will unlock dedicated growth capital independent of Hut 8’s balance sheet, enabling more efficient capital allocation toward large-scale Bitcoin accumulation at low cost. American Bitcoin’s mandate is built around three pillars: efficient Bitcoin mining, leadership within the Bitcoin ecosystem, and the accumulation of Bitcoin reserves. This structure mirrors the broader market trend of “pure-play” crypto investment vehicles, popularized by MicroStrategy’s stock-based Bitcoin strategy since 2020.
Leadership and Governance
Post-closing, American Bitcoin’s board and management will be dominated by the Trump family’s appointees and Hut 8 executives. Mike Ho will serve as Executive Chairman, Matt Prusak as CEO, and Eric Trump—son of former President Donald Trump—as Chief Strategy Officer. The board will include industry veterans and Hut 8 leadership, such as Justin Mateen and Michael Broukhim. This governance mix aims to combine political and capital markets expertise with operational and technical mining know-how.
Market Reaction and Investor Sentiment
News of the merger triggered dramatic stock movements: Gryphon shares surged approximately 173% in regular trading (and reportedly as much as 280% premarket) on the day of the announcement, while Hut 8 stock climbed about 11–12% in after-hours trading. The spike underscores investor appetite for crypto-adjacent equities offering leveraged exposure to Bitcoin’s price movements, especially vehicles with clear accumulation strategies and visible political backing.
The SPAC and Securitization Trend
American Bitcoin’s merger follows a wave of crypto firms going public via SPACs or traditional mergers. With over $15 billion raised through SPACs in 2021 alone, public Bitcoin-focused entities have proliferated, allowing investors to gain regulated market exposure without directly holding digital assets. Companies like BTC Inc.’s Nakamoto Holdings and Strategy (Michael Saylor’s vehicle) have demonstrated significant capital-raising and accumulation strategies, further validating this model.
Recent Crypto Market Developments
The broader crypto market has benefited from easing U.S.-China trade tensions, with Bitcoin briefly topping $105,000 and Ethereum surging past $2,600 amid a weekly gain exceeding 40%. Meanwhile, institutional investors continue record-setting accumulation: Strategy added 13,390 BTC for $1.34 billion, bringing its total to 568,840 BTC (valued at over $39 billion). The confluence of geopolitical catalysts and corporate treasuries piling into Bitcoin underpins the timing of American Bitcoin’s public offering.
Regulatory and Ethical Considerations
As with other Trump-linked ventures, American Bitcoin faces scrutiny over potential conflicts of interest and the proximity of political influence. Critics have questioned whether the Trump family’s dual roles—as political figures and as stakeholders in a publicly traded crypto enterprise—could undermine policy objectivity. The venture also spotlights ongoing debates over crypto regulation; the Trump administration’s rhetoric has alternated between pro-crypto openness and calls for stringent oversight.Future Outlook
Looking ahead, Hut 8’s vision—articulated by Asher Genoot on Bloomberg—envisions converting American Bitcoin into one of two “sister” public companies within a vertically integrated platform, one focused on energy and data centers, the other on mining and Bitcoin reserves. The new entity may pursue convertible bonds or private placements to fund further accumulation, while leveraging long-term commercial agreements with Hut 8 for stable revenue streams.
Conclusion
American Bitcoin’s Nasdaq listing via merger with Gryphon Digital Mining marks a pivotal moment in the securitization of Bitcoin investment, blending political prominence, corporate infrastructure, and innovative financing. As the merged company begins trading under “ABTC,” investors will watch closely to see whether this high-profile vehicle can deliver on its promise of low-cost Bitcoin accumulation and help define the next era of public crypto enterprises.
