Griffon Digital Mining Completes Merger with American Bitcoin
Griffon Digital Mining, a Bitcoin mining company located in Las Vegas, Nevada, has secured final shareholder approval to merge with American Bitcoin, which is linked to the Trump family. This approval was confirmed on Wednesday
During that meeting, shareholders voted in favor of merging shares, and an announcement was made on Friday. A 5-for-1 stock split, along with a new listing on the market, is anticipated to take place on September 2nd at 5 PM.
After this reverse stock split, the newly merged company will operate under the name American Bitcoin and will trade using the ticker symbol “ABTC.”
This reverse stock split will decrease the company’s outstanding shares from 82.8 million to around 16.6 million, not including any new issuances tied to the transaction.
Initial reports of this merger, which Reuters published earlier this week, indicate that US Bitcoin will integrate with Griffon following a preliminary agreement established in May.
Initially, the news spiked Griffon’s stock prices, but they subsequently dropped by over 10% on Friday, somewhat dampening a 41% surge from Thursday.
As for market performance, Griffon Digital Mining shares closed down 10.5% at $1.54 on Friday, with trading volume tripling the daily average.
The Origins and Strategies of American Bitcoin
American Bitcoin was launched in March, spearheaded by Donald Trump Jr. and Eric Trump, who rebranded an existing data center. This initiative is part of Hut 8, a digital asset mining and infrastructure company.
The company aims to establish itself as a leading Bitcoin mining entity, focusing on building a significant Bitcoin Treasury.
The merger with Gryphon Digital Mining is expected to leverage Gryphon’s existing Nasdaq listing, effectively providing a quicker pathway to enter the public market without needing another IPO.
Essentially, the deal aims to combine Griffon’s cost-effective mining capabilities with American Bitcoin’s ambitious BTC accumulation strategy, creating a more scalable and appealing platform for investors.
Currently, American Bitcoin has publicly verified and disclosed holdings of 215 BTC. However, estimates suggest that the actual total might be around 1,941 BTC.
This strategy aligns with a broader trend among public companies seeking to bolster their Bitcoin reserves. Together, these companies currently hold 989,926 BTC, with MicroStrategy, led by Michael Saylor, accounting for nearly 64% of that total.
