Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Gryphon Digital Mining, a publicly traded Bitcoin miner based in Las Vegas, Nevada, has secured final shareholder approval to merge with American Bitcoin, a mining company linked to President Donald Trump’s family. The stock-for-stock merger, approved on Wednesday and publicly announced on Friday, is set to culminate in a Nasdaq debut for the combined entity under the ticker symbol “ABTC” following a reverse stock split scheduled for September 2. This strategic move aims to create a more scalable and investor-friendly platform, leveraging Gryphon’s existing public listing and low-cost infrastructure with American Bitcoin’s focus on Bitcoin accumulation.
Merger Details and Listing
The approved merger will see a reverse five-to-one stock split, reducing the company’s outstanding shares from approximately 82.8 million to about 16.6 million, excluding new issuances related to the transaction. Following the reverse split, the newly combined entity will officially adopt the American Bitcoin name and commence trading on Nasdaq under the new ticker “ABTC” at 5:00 pm ET on September 2.
This agreement follows an initial accord reached in May, under which American Bitcoin would go public by merging with Gryphon. The merger offers American Bitcoin a fast track to public markets, bypassing the need for a separate initial public offering by utilizing Gryphon’s established Nasdaq listing.
American Bitcoin’s Origins and Strategy
American Bitcoin debuted in March, when President Trump’s sons, Donald Trump, Jr. and Eric Trump, rebranded American Data Center under the new name. The venture was launched as part of Hut 8, a digital asset mining and infrastructure company. At its inception, American Bitcoin positioned itself as a “pure-play” Bitcoin mining company, articulating plans to accumulate a significant Bitcoin treasury.
The deal is designed to combine Gryphon’s low-cost mining infrastructure with American Bitcoin’s aggressive Bitcoin accumulation strategy. This synergy is expected to create a more robust and scalable platform for investors in the digital asset mining sector. American Bitcoin has verifiably disclosed holdings of 215 BTC, with some estimates suggesting its total could be as high as 1,941 BTC.
Market Reaction
Gryphon Digital Mining’s stock experienced significant volatility surrounding the merger news. After an initial surge earlier in the week following reports of the merger, Gryphon’s shares (GRYP) dropped more than 10% on Friday, partially retracing a 41% rally from Thursday. Shares closed down 10.5% at $1.54 on Friday, with trading volume nearly triple its daily average.
The merger of Gryphon Digital Mining and American Bitcoin marks a significant development in the Bitcoin mining sector, providing a direct route to public markets for a company with high-profile links. As the combined entity prepares for its Nasdaq debut, industry observers will be watching how its strategy of leveraging existing infrastructure and aggressive Bitcoin accumulation plays out in the competitive digital asset landscape.
