On May 12, mining companies American Bitcoin and Gryphon Digital Mining announced their official merger, with American Bitcoin going public through a stock swap. Under the agreement, Gryphon will acquire American Bitcoin in a stock-for-stock transaction. The combined entity will bear the new name "American Bitcoin" and be managed by its current board of directors, which includes Eric Trump, son of former US President Donald Trump.
The announcement generated significant market reaction, with Gryphon's stock jumping from $0.52 on May 9 to $2.15 after the merger, a gain of more than 313%.
It's worth noting that this merger comes after reports last April indicated that American Bitcoin was considering an initial public offering (IPO).
What is American Bitcoin?
The company was formerly founded under the name "American Data Center" by a group of investors including Donald Trump Jr. and Eric Trump. At the end of March,
Hut 8 acquired a majority stake in American Bitcoin, with direct support from members of the Trump family.
Following the deal, American Bitcoin acquired the Bitcoin mining equipment previously owned by Hut 8, and the company now aims to become "the largest dedicated Bitcoin miner in the world," according to a previous announcement.