Gryphon stock rises 11% on report of American Bitcoin merger approval
Gryphon Digital Mining (NASDAQ: GRYP) saw a notable surge in its stock price by 11% during pre-market trading following news from Reuters about the impending closure of its all-stock merger with American Bitcoin.
The merger, which has received approval from shareholders, will bring together Gryphon and American Bitcoin – a mining project initiated earlier this year by Hut 8 in collaboration with Donald Trump Jr. and Eric Trump. The combined entity will operate under the American Bitcoin name and will be predominantly controlled by Hut 8 and the Trump brothers, who are expected to collectively own around 98% of the company’s stock. Trading under the new ticker symbol “ABTC” is anticipated to commence in early September.
It was revealed in the report that Gemini co-founders Tyler and Cameron Winklevoss are among the key investors involved in the transaction. American Bitcoin’s CEO, Asher Genoot, informed Reuters that the investor lineup has been finalized.
American Bitcoin has set ambitious goals to establish itself as the foremost, most efficient dedicated bitcoin mining entity globally. The company aims to amass bitcoin through both mining activities and direct purchases. Additionally, it is contemplating potential acquisitions in regions like Hong Kong and Japan as part of its global expansion strategy, as per earlier reports from the Financial Times.
The Trump family’s connection with this venture has sparked some criticism regarding possible conflicts of interest, especially in light of President Donald Trump’s vocal support for crypto-related legislations. However, both the White House and Genoot have maintained that the firm’s operational decisions are not influenced by governmental actions.
In conclusion, the stock market’s positive reaction to the news of Gryphon’s merger with American Bitcoin showcases investor optimism about the future prospects of the combined entity. The involvement of prominent figures like the Trump brothers and key investors such as the Winklevoss twins further adds to the anticipation surrounding the forthcoming merger and its potential impact on the cryptocurrency mining industry.
