Easier to Pump: Trump-Backed American Bitcoin (ABTC) Merges with Gryphon Digital Mining for Nasdaq
Key Takeaways
- American Bitcoin will begin trading on Nasdaq in early September under ticker ABTC after completing it's reverse merger with Gryphon Digital Mining
- Trump family and Hut 8 maintain overwhelming control - Combined 98% ownership stake in the new entity raises some corporate governance questions
- Strategic expansion into Asian markets already underway with Eric Trump touring Hong Kong and Japan to scout acquisition targets
- Pro-crypto Trump administration policies creating favorable regulatory environment for Bitcoin businesses
What is American Bitcoin Anyway?
American Bitcoin launched just this past March (2025) as a collaboration between Hut 8 Corp and the Trump brothers - Eric Trump and Donald Trump Jr. The company bills itself as a "pure-play bitcoin miner" with ambitions to become the world's largest and most efficient operation in the space .
From what I've gathered talking to folks in the industry, their business model isn't just about running mining rigs. They're actually pursuing a hybrid approach where they'll both mine AND buy bitcoin depending on market conditions. As Hut 8 CEO Asher Genoot explained: "Instead of just a treasury strategy where companies raise money to buy bitcoin or just a mining company... we ebb and flow between which one is the best return at different times" . This flexibility could give them an advantage over competitors who're locked into just one approach.
The Trump brothers involvement isn't just in name only - Eric Trump is apparently actively involved in strategy, particularly around mining operations, new site development, and treasury strategy . Though critics have raised questions about potential conflicts of interest given their father's pro-crypto policies as president, the company insists their business "had nothing to do with government" .
The Merger Process Explained
So how exactly is this going down? American Bitcoin is going public through what's called a reverse merger with Gryphon Digital Mining (GRYP), which is already publicly traded. This isn't the same as a traditional IPO - it's basically a backdoor into public markets .
Here's the timeline:
- May 2025: The merger was first announced, causing Gryphon's stock to soar 200% in pre-market trading
- August 27, 2025: Gryphon shareholders approved the merger during a special meeting
- September 2, 2025: Planned reverse stock split (5-for-1) to meet Nasdaq listing requirements
- Early September 2025: Expected start of trading under new ticker ABTC
The reverse stock split is necessary to bump up Gryphon's share price to meet Nasdaq's minimum bid requirements. They're going from about 82.8 million shares outstanding down to approximately 16.6 million shares . Existing shareholders don't need to do anything - the adjustment will happen automatically.
Who Owns What After The Merger
Table: Ownership Structure of American Bitcoin Post-Merger
The ownership structure post-merger is pretty concentrated. Hut 8 maintains majority control with 80%, while the Trump brothers together hold another 18% (roughly 9% each) . That leaves just about 2% for other investors, which apparently includes the Winklevoss twins who've taken an anchor position .
This level of ownership concentration is unusual for a public company and could potentially lead to governance issues down the road. Majority-controlled companies sometimes face challenges with minority shareholder representation and independent oversight.
Hut 8 will also serve as the exclusive infrastructure and operations partner through long-term contracts . This means they'll be leasing data centers to American Bitcoin , creating an ongoing revenue stream for Hut 8 regardless of American Bitcoin's mining performance.
The Trump Connection and Crypto Policy
Let's address the elephant in the room - the Trump family involvement and how it intersects with current U.S. policy. President Trump has been openly supportive of crypto since his return to office, signing an executive order in January 2025 designed to support the U.S. crypto industry .
The executive order did several important things:
- Established a President's Working Group on Digital Asset Markets led by "Crypto Czar" David Sacks
- Restricted agencies from promoting central bank digital currencies (CBDCs)
- Protected crypto companies' access to banking services
- Directed the development of a comprehensive regulatory framework
Critics have accused Trump of conflicts of interest given his family's business ventures in crypto . But the White House has brushed aside these concerns, and honestly, this isn't the first time a presidential family has had business interests that could potentially overlap with policy.
What's clear is that the regulatory environment has shifted significantly from the Biden era. The SEC under new chairman Paul Atkins (nominee) has already formed a "Crypto 2.0" task force led by Commissioner Hester Peirce, who's been critical of the previous "regulation by enforcement" approach .
Market Performance and Bitcoin Context
The announcement of this merger has already moved markets in pretty significant ways. When the deal was first announced back in May, Gryphon's stock jumped 200% in pre-market trading . More recently, as the shareholder vote approached, the stock rose 42% in just one day (August 28) .
Table: Gryphon Digital Mining Stock Performance
This is happening against a backdrop of Bitcoin itself pulling back from it's all-time high of around $124,500 reached on August 14 . As of late August, BTC was down about 13% from that peak and had dipped below the 50-day exponential moving average, which technical analysts often watch as a key support level .
Eric Trump remains bullish despite the pullback, predicting at the Bitcoin Asia conference that BTC will "hit $1 million" in the next several years . His reasoning: "You've got nation states that are buying the hell out of Bitcoin. You've got Fortune 500 companies that are buying the hell out of Bitcoin" .
What's Next For American Bitcoin
Beyond the merger itself, American Bitcoin has pretty ambitious plans for expansion. They're already looking at acquisition targets in Asia, particularly in Hong Kong and Japan . Eric Trump was actually in Hong Kong for the Bitcoin Asia conference and was planning to travel to Tokyo for an event with Metaplanet, a Japanese bitcoin treasury firm .
The international expansion makes strategic sense for a couple reasons. First, it helps them diversify geographically rather than having all there operations concentrated in one country. Second, as Genoot noted, it gives investors who might be prevented from buying Nasdaq-listed stocks access to Bitcoin exposure through local listings .
The company's also planning to accumulate Bitcoin through both mining and direct purchases . This flexible approach lets them capitalize on market conditions - when mining profitability is low, they can buy more directly, and when it's high, they can focus on expanding mining operations.
With Hut 8 as their infrastructure partner, they'll have access to established data centers and mining operations. Hut 8 has been shifting it's own focus toward energy infrastructure and data centers after launching American Bitcoin , so this relationship seems to be part of a broader strategic repositioning for both entities.
Investment Potential and Risks
So what's the investment thesis here? On the bullish side:
- Pro-crypto regulatory environment: The Trump administration is clearly friendly toward crypto businesses
- Experienced leadership: Hut 8 brings mining expertise while Trump connections might provide political insulation
- Flexible strategy: Their hybrid mine-and-buy approach could outperform pure-play miners
- International expansion: Early moves into Asian markets could provide first-mover advantage
But there's some real risks too:
- Concentrated ownership: With 98% control, Hut 8 and the Trumps have overwhelming control
- Regulatory uncertainty: Despite friendly administration, comprehensive framework still in development
- Bitcoin volatility: Pullback from recent highs shows ongoing price sensitivity
- Conflict questions: Political connections could become liability if perception of favoritism emerges
The company will also need to navigate state-level regulations despite federal friendliness. New York's "BitLicense" regime and California's new Digital Financial Assets Law will still apply to their operations , so regulatory compliance will remain complex even with federal support.
Frequently Asked Questions
When will ABTC start trading on Nasdaq? Early September 2025 is the target, with the reverse stock split scheduled for September 2 . The exact date hasn't been announced but likely within the first week or two of the month.
What will the ticker symbol be? The company will trade under symbol "ABTC" . The CUSIP number will change to 02462A104 .
Who are the major owners after the merger? Hut 8 will own 80%, Eric and Donald Trump Jr. will together own about 18%, and other investors (including the Winklevoss twins) will own roughly 2% .
How does Trump's crypto policy affect American Bitcoin? The administration's pro-crypto stance creates a favorable regulatory environment, though the company insists their business "had nothing to do with government" . Policies supporting crypto access to banking and opposing CBDCs could indirectly benefit their operations.
Is this a good investment? That depends on your risk tolerance and belief in both Bitcoin's future and the company's ability to execute it's strategy. The concentrated ownership structure and political connections create both potential advantages and unique risks that don't exist with other mining companies.