American Bitcoin Corp. (ABTC), backed by Donald Trump Jr. and Eric Trump, filed with the Securities and Exchange Commission (SEC) on September 3rd.
The filing follows the debut of the volatile NASDAQ, where ABTC stocks surged at 91% in an hour and crashed below the opening due to closures.
The ABTC opened at $6.90 and rose to $13.20, prompting five trading halts in the first time. However, the stock was unable to maintain momentum and returned to opening prices before increasing recovery at the end of the trading session.
At the time of reporting, the stock had shown signs of upward momentum after opening hours, trading at $8.06, an increase of around 16% in the day.
American Bitcoin emerged from the stock merger with Gryphon Digital Mining, creating a publicly traded Bitcoin accumulation platform under Ticker ABTC.
The transaction concluded earlier this year has positioned US Bitcoin as the parent company, with former US Bitcoin shareholders owning about 98% of the total organization.
Trump Family Mining Venture
American Bitcoin was launched in March as a majority subsidiary of energy company HUT 8. This maintains 80% ownership.
Crypto Investor Blueprint: 5-day course on bag holdings, insider frontrunning, and lost alpha
The Trump brothers, along with other founding partners, hold a small profit in the remaining 20%, but the exact breakdown of ownership remains private. Eric Trump serves as Chief Strategy Officer and formerly sold Covid tests, Matt Prusak, who leads the company as CEO.
Prusac positioned the merger as an opportunity to create dominant players in the fragmented Bitcoin mining sector. The company operates its asset lighting model through its strategic partnership with HUT 8, leveraging its existing infrastructure to accumulate Bitcoin, rather than building mining facilities from scratch.
Gryphon contributes operational mining assets, including 899 Petahash per second, as of the second quarter of 2024. The company focuses on renewable and low-cost energy sources, including its recent acquisition of natural gas assets in Canada.
Sector integration
The merger more broadly reflects the US Bitcoin mining consolidation trend following last year's Harving event, which has led to a decrease in mining rewards and increased economic pressure on operators.
Companies are seeking greater scale and operational efficiency through mergers and acquisitions to remain competitive in a challenging setback environment.
SEC Filing combines Griffon mining operations with access to the American Bitcoin capital market with a strategic vision for institutional-scale Bitcoin accumulation and Griffon mining operations to advance the Trump family's expanding crypto venture.
