Gryphon Stock Surges 42% on Thursday Ahead of Merger with American Bitcoin
Cryptocurrency mining company Gryphon (GRYP) prepares for September public debut following all-stock deal with Donald Trump family venture
Quick overview
- Gryphon Digital Mining's stock has surged 231% since May due to its upcoming merger with American Bitcoin, backed by Donald Trump's sons.
- The merger is expected to be completed in September, with the new company trading under the ticker ABTC.
- Despite the stock increase, Gryphon faces financial challenges, including declining cash flow and negative profit margins.
- The merger reflects a broader trend of increasing acceptance of Bitcoin mining as a legitimate business model amid evolving regulations.
Since May, Gryphon Digital Mining’s stock has skyrocketed by 231%. This is because investors are excited about its imminent merger with American Bitcoin, a cryptocurrency business sponsored by Donald Trump’s sons. As the deal’s completion date in September gets closer, the company’s shares rose another 42.1% on Thursday, reaching $1.75.
Gryphon-American Bitcoin Merger Details and Timeline
Gryphon Digital Mining and American Bitcoin are merging into one company, and the deal is likely to be finished soon. The new company will start trading under the ticker code ABTC in early September. Asher Genoot, the CEO of Hut 8, which is American Bitcoin’s biggest investor, said that the deal is a big step toward consolidating the Bitcoin mining industry.
The new company will keep the American Bitcoin moniker and be run by a small group of owners. Eric Trump, Donald Trump Jr., and Hut 8, a cryptocurrency mining company, will own 98% of the new company. Hut 8 will own 80% of American Bitcoin. This concentration of ownership shows how strategic the relationship is and how much power the Trump family will have in the new corporation.
Strategic Vision and Market Positioning
American Bitcoin has been secretly building up its Bitcoin treasury while also putting money into mining infrastructure. The company’s plan is to build up its Bitcoin reserves while also increasing its mining capacity. This will make it both a holder and a producer of the cryptocurrency. As part of their ambition to grow globally, leadership has said they want to look into buying companies in Asia.
Asher Genoot has said that the amalgamated company wants to be “the world’s largest, most efficient pure-play Bitcoin miner.” This concept includes not only mining activities but also managing the treasury and strategically accumulating Bitcoin. This shows a comprehensive approach to cryptocurrency infrastructure.
Gryphon’s Financial Performance and Challenges
Gryphon is having a lot of financial problems that the merger is supposed to help with, even though the stock price is going up and investors are excited. The business has had a hard time because its operating cash flow has been going down and its margins on key profitability indicators have been negative. These problems with operations show how important the merger could be as a way to turn things around.
Gryphon has filed a hybrid securities application seeking $5 billion to help it grow, showing how much money it needs to expand. The company’s relationship with Hut 8’s subsidiary gives it more skills and resources, which will help it run its business better before the merger is complete.
Broader Industry Context
The Gryphon-American Bitcoin merger happens at the same time when a lot of bitcoin startups are going public in the US. When Circle went public in June 2025, its stock rose 167% on the first day of trade. When Bullish went public in August, its stock rose 218%. This trend shows that regulations are becoming clearer and more institutions are accepting cryptocurrency firms.
The time is right since there have been big policy changes in the Trump administration. In March 2025, President Trump signed an executive order that set up a national strategic Bitcoin reserve. Then, in July, he signed the GENIUS Act, which sets rules for stablecoins. These changes in policy have made it easier for bitcoin startups to go into the public market.
Market Outlook and Investor Sentiment
The merger is more than just a way for companies to combine; it shows that Bitcoin mining is becoming more accepted as a genuine business model. The deal gets more attention from institutions because it has high-profile investors like Cameron and Tyler Winklevoss of Gemini exchange.
However, the Trump family’s growing interest in cryptocurrencies has drawn both praise and criticism. Their support for decentralized financial systems goes against the way banks have always worked and raises worries about possible conflicts of interest and regulatory control.
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