American Bitcoin, Hut 8’s majority-owned unit backed by the Trump family, will go public via a merger with Gryphon Digital Mining (GRYP).

Shares of Hut 8 Corp. (TSE:HUT) surged in early trade on Thursday after the firm said its majority-owned subsidiary American Bitcoin is planning to go public via a merger with Gryphon Digital Mining (NASDAQ:GRYP).

The stock-for-stock transaction will result in Gryphon (NASDAQ:GRYP) acquiring American Bitcoin, with the combined company adopting the American Bitcoin name and remaining focused on scaling low-cost bitcoin (BTC) accumulation, the company said.

The new company will be listed on Nasdaq and trade under the ticker "ABTC." The transaction is expected to close as early as Q3 2025.

American Bitcoin will retain its current leadership and board, including CEO Mike Ho, and continue operating independently from Hut 8, the statement noted.

"This transaction marks the next step in scaling American Bitcoin as a purpose-built vehicle for low-cost Bitcoin accumulation at scale," said Asher Genoot, CEO of Hut 8.

"By taking American Bitcoin public, we expect to unlock direct access to dedicated growth capital independent of Hut 8's balance sheet."

American Bitcoin was previously formed through a merger between the Trump family's firm American Data Center and BlockChain Ventures.

The Trump brothers own a 20% stake in American Bitcoin, while Hut 8 holds the remaining 80%.

After the merger, existing shareholders of American Bitcoin are expected to own roughly 98% of the new company.

"We are pleased to announce this merger, which we believe will be a win-win for both parties," said Gary Gryphon, CEO of Gryphon.

"This transaction will allow us to continue executing on our strategy of providing our shareholders with exposure to the digital asset class.

"We believe that the combination of our two companies will create a leading public company in the bitcoin mining sector."

Shares of Hut 8 Corp. were up 12% in pre-market trade, while Gryphon Digital Mining (GRYP) soared more than 200%.