American Bitcoin Corp. (ABTC), a company backed by Donald Trump Jr. and Eric Trump, recently made headlines with its filing with the Securities and Exchange Commission (SEC) on Sept. 3, aiming to raise $2.1 billion through share sales. This move came after a volatile Nasdaq debut that saw ABTC stock skyrocket by 91% in just one hour before plummeting below the opening price by the end of the trading day.
The initial trading of ABTC saw the stock open at $6.90 and surge to $13.20, prompting five trading halts within hours. However, the share price struggled to maintain its momentum and eventually dropped back to the opening price, only to recover slightly by the close of the trading session. As of the latest update, the stock was showing signs of upward momentum after hours, trading at $8.06, marking a 16% increase for the day.
American Bitcoin emerged from a merger with Gryphon Digital Mining earlier this year, creating a publicly traded Bitcoin accumulation platform under the ticker ABTC. The merger positioned American Bitcoin as the parent company, with former American Bitcoin shareholders owning approximately 98% of the combined entity.
The Trump family has a stake in this mining venture, with American Bitcoin initially launching as a majority-owned subsidiary of energy company Hut 8, which maintains an 80% ownership stake. The Trump brothers hold minority interests in the remaining 20%, alongside other founding partners. Eric Trump serves as the chief strategy officer, while Matt Prusak, the former seller of COVID tests, leads the company as the CEO.
Prusak sees the merger as an opportunity to establish a dominant player in the fragmented Bitcoin mining sector. The company operates on an asset-light model through a strategic partnership with Hut 8, utilizing existing infrastructure for Bitcoin accumulation rather than constructing mining facilities from scratch. Gryphon brings operational mining assets to the table, including 899 petahash per second of self-mining hash rate as of the second quarter of 2024. The company focuses on renewable and low-cost energy sources, recently acquiring natural gas assets in Canada.
The merger between American Bitcoin and Gryphon reflects the broader consolidation trends in the US Bitcoin mining sector, following last year’s halving event that reduced mining rewards and increased economic pressure on operators. Companies are increasingly looking to scale up and improve operational efficiency through mergers and acquisitions to stay competitive in the challenging post-halving environment.
The SEC filing signifies the Trump family’s expanding involvement in crypto ventures, as they combine Gryphon’s mining operations with American Bitcoin’s capital market access and strategic vision for institutional-scale Bitcoin accumulation. This strategic move positions American Bitcoin Corp. as a key player in the evolving landscape of Bitcoin mining and accumulation.