American Bitcoin, co-founded by Eric Trump, is set to go public through a merger with Gryphon Digital Mining.
The new entity will focus on large-scale Bitcoin mining and reserve accumulation, with American Bitcoin shareholders owning 98% of the merged company.
The announcement triggered a 173% surge in Gryphon Digital Mining’s share price.
The company’s strategy centers on accumulating Bitcoin through mining rather than direct market purchases.
Mining costs are estimated at $36,800 per BTC for electricity alone, but total costs could reach $80,000–$90,000 when hardware is included.
The merger is expected to close in Q3 2025, with significant attention on how the market will respond.
A New Chapter: American Bitcoin’s Ambitious Public Debut
The landscape of Bitcoin mining is about to witness a seismic shift as American Bitcoin, a company co-founded by Eric Trump, prepares to enter the public markets. This move is being orchestrated through a merger with Gryphon Digital Mining, a firm already listed on Nasdaq. The announcement, made in mid-May, signals a bold step toward scaling up Bitcoin accumulation on an industrial level.
The merger is not just a routine business transaction; it’s a calculated play to create a powerhouse in the Bitcoin mining sector. American Bitcoin, primarily owned by industry heavyweight Hut 8, will emerge as the dominant force in the new entity, with its shareholders controlling a staggering 98% of the combined company. Gryphon’s investors, by contrast, will hold a modest 2%, underscoring the scale and ambition of American Bitcoin’s vision.
Strategic Vision: Mining for Reserves, Not Just Profits
What sets this venture apart is its focus on building substantial Bitcoin reserves through mining, rather than simply purchasing coins on the open market. Eric Trump has articulated a clear goal: to establish American Bitcoin as the premier platform for large-scale, low-cost Bitcoin accumulation. This approach is designed to leverage the inherent advantages of mining, especially when market prices for Bitcoin are high.
The company’s leadership believes that going public will provide the capital and visibility needed to expand operations and solidify its position in the industry. Asher Genoot, CEO of Hut 8 and a board member of American Bitcoin, emphasized that public status will enable the firm to pursue its objectives with greater scale and efficiency. The market’s initial reaction was swift and dramatic, with Gryphon Digital Mining’s shares soaring by 173% in a single day following the announcement.
The Economics of Mining: Opportunity and Challenge
At the heart of American Bitcoin’s strategy is the economics of mining itself. According to recent data, the average cost to mine one Bitcoin, considering only electricity expenses, stands at approximately $36,800. With Bitcoin’s market price currently exceeding $100,000, this creates a theoretical profit margin of over 180%. Such figures make the reserve accumulation model highly attractive—at least on paper.
However, the reality is more nuanced. Critics point out that these cost estimates often exclude the significant capital required for mining hardware and infrastructure. When these factors are included, the true cost of mining a single Bitcoin could rise to between $80,000 and $90,000. This narrows the profit margin considerably and introduces additional risk, especially if Bitcoin’s price becomes volatile or energy costs spike.
Market Impact and the Trump Family’s Crypto Ambitions
The American Bitcoin-Gryphon merger is more than just a business deal; it’s a signal of the Trump family’s growing interest in the digital asset space. Beyond mining, the family has shown involvement in stablecoins and decentralized finance, indicating a broader strategy to engage with the evolving world of cryptocurrency.
The decision to focus on mining as a means of Bitcoin accumulation reflects a belief in the long-term value of holding reserves rather than trading for short-term gains. This approach could position American Bitcoin as a unique player in the market, especially if it can maintain low operational costs and scale effectively. The merger is slated for completion in the third quarter of 2025, and industry observers are keenly watching to see how the market will respond once the new entity begins operations.
Conclusion
American Bitcoin’s planned public debut through its merger with Gryphon Digital Mining marks a significant development in the world of institutional Bitcoin mining. With a strategy centered on large-scale reserve accumulation and a leadership team aiming to capitalize on the economics of mining, the company is poised to make waves. While the potential for high returns exists, the true test will be in managing operational costs and navigating the complexities of the mining industry. As the deal moves toward completion, all eyes will be on American Bitcoin to see if it can deliver on its ambitious vision and capture the market’s imagination.
