Trump-Backed American Bitcoin Merges with Gryphon to Go Public, Targeting U.S. Mining Leadership Amid Regulatory and Industry Challenges
American Bitcoin, backed by Eric Trump and Donald Trump Jr., has announced a reverse merger with Nasdaq-listed Gryphon Digital Mining, resulting in a new entity—American Bitcoin—set to trade under the ticker ABTC. The merger aims to establish a leading U.S.-based bitcoin mining and digital currency reserve platform. American Bitcoin will leverage the Trump family’s name to attract investment and utilize low-cost electricity in regions like Texas and Wyoming ($0.08/kWh) to maintain profitability post-bitcoin halving, now with rewards at 3.125 BTC per block. The merger is expected to close in Q3 2025, with American Bitcoin shareholders—including Hut 8 and the Trump brothers—owning 98% of the new company. Gryphon brings sustainable mining practices, primarily using hydroelectric power, enhancing the company’s environmental credentials. The move comes as the Trump administration signals a pro-crypto approach, promising streamlined regulations and permitting that could benefit U.S.-based miners. However, a proposed 36% tariff on Asian mining equipment may raise operational costs. Despite Hut 8 seeing a 58% revenue drop and $134 million net loss in Q1 2025, the announcement triggered a strong market response—Gryphon’s shares rallied over 280%, Hut 8’s rose 11%, and investors were optimistic about institutional interest in a Trump-backed public mining firm. Success will depend on bitcoin price stability, effective energy management, and navigating evolving regulations. Overall, the merger positions American Bitcoin as a prominent U.S. bitcoin mining company, but long-term profitability relies on managing economic and policy challenges.
Bullish
The Trump-backed American Bitcoin merger with Gryphon to create a major U.S.-based, publicly traded bitcoin mining company has sparked strong investor interest, evidenced by significant share price surges. The Trump family’s involvement, pro-crypto regulatory signals from the administration, and enhanced environmental credentials through sustainable mining practices have improved institutional appeal and positioned the company as a leader in U.S. mining. While challenges such as operating cost pressures and industry headwinds exist, the overwhelmingly positive investor reaction and the prospect of regulatory support suggest bullish sentiment for both the company and bitcoin’s market legitimacy in the near term.