Gryphon Digital Mining, a publicly traded Bitcoin mining company located in Las Vegas, Nevada, has received shareholder approval to merge with the Trump family-linked American Bitcoin company.
Shareholders approved the exchange merger agreement on Wednesday, and the company announced this decision on Friday. As part of the transaction, a reverse five-for-one stock split and new listing is planned for September 2 at 5 PM Eastern Time.
Once the reverse stock split is completed, the merged entity will operate under the name American Bitcoin and will be traded under the ticker 'ABTC'.
The reverse stock split will reduce the company's unissued shares from 82 million to about 16.6 million, excluding new shares issued related to the transaction.
This merger was first reported by Reuters earlier this week, and following a preliminary agreement reached in May, American Bitcoin will become a publicly traded company through a merger with Gryphon.
After the merger news broke, Gryphon's stock price briefly surged but fell over 10% on Friday.
Origins and Strategy of American Bitcoin
American Bitcoin was launched in March by Trump's son as part of Hut 8, initially established as a Bitcoin mining company with plans to accumulate a significant Bitcoin reserve.
This merger with Gryphon allows for quick access to the public market by leveraging its existing Nasdaq listing, thus avoiding a separate IPO.
Theoretically, this transaction combines Gryphon's low-cost mining infrastructure with American Bitcoin's Bitcoin accumulation strategy, creating a more scalable and investor-friendly platform.
American Bitcoin has disclosed holdings of 215 Bitcoins, but estimates from BitcoinTreasuries.NET suggest it could be as high as 1,941 Bitcoins.
This move comes as more and more publicly traded companies actively expand their Bitcoin reserves, currently holding a total of 989,926 Bitcoins, with MicroStrategy accounting for nearly 64% of that.