American Bitcoin (Eric Trump-backed) Goes Public Through Merger With Gryphon Digital Mining

Crypto mining firm Gryphon Digital (NASDAQ:GDMN) is going public through a merger with American Bitcoin, a majority-owned subsidiary of energy infrastructure, crypto mining and data center firm Hut 8 (NASDAQ: HUT).

The companies announced the deal on Thursday, May 12, in a joint statement.

Under the terms of the agreement, Gryphon will acquire American Bitcoin in a stock-for-stock transaction. After the merger, the new company will operate under the American Bitcoin brand and be led by its board of directors, which includes Eric Trump, the second-eldest of US President Donald Trump’s three sons.

The announcement follows early April reports that American Bitcoin was considering an initial public offering (IPO).

American Bitcoin is a majority-owned subsidiary of Hut 8. Asher Genoot, CEO of the Canadian firm, said the company aims to make American Bitcoin “a purpose-built vehicle for low-cost Bitcoin (BTC) accumulation at scale.” Genoot added:

"We believe that this transaction will create significant value for both Gryphon and American Bitcoin shareholders. We are also confident that the combined company will be well-positioned to capitalize on the growing demand for digital assets and the metaverse."

The merger agreement has been approved by the boards of directors of both companies and is subject to the satisfaction of certain closing conditions, including the approval of Gryphon's stockholders and the registration statement for the offering being declared effective by the Securities and Exchange Commission.

The companies anticipate that the merger will be completed in the third quarter of 2023.

Upon completion of the merger, existing American Bitcoin shareholders are expected to own approximately 98% of the newly formed company, while Gryphon shareholders will own approximately 2%. The new company's common stock is anticipated to be listed on a major U.S. stock exchange.

Following the transaction, American Bitcoin is expected to control a majority of the outstanding stock of the combined company. Hut 8 will continue to manage American Bitcoin's infrastructure and operations through long-term commercial agreements.

Those deals are expected, according to the statement, to generate stable, contracted revenue streams for Hut 8's power and digital infrastructure segments.