Donald Trump has been dubbed as the “cryptocurrency friendly” US President, and now his family-backed Bitcoin mining company is set to go public on a New York Stock exchange via merger route, today.
American Bitcoin Corporation, majority owned by Hut 8 Corp., and partly owned by Donald Trump’s sons Eric Trump and Donald Trump Jr., is set to merge with Gryphon Digital Mining in an all-stock aquisition, Bloomberg reported.
Notably, other ventures in the space by Donald Trump and family include World Liberty Financial and official meme coins $TRUMP and $MELANIA.
Trump Family’s Bitcoin Mining Company — All we know
- American Bitcoin will go public as part of a merger agreement with Gryphon Digital Mining. Shares of Gryphon jumped by 280 per cent to $2.04 in premarket trading after the news, while Hut 8 shares added more than 11 per cent to reach $15.45.
- The newly combined company will operate as “American Bitcoin” and will likely trade on Nasdaq under the ticker symbol ABTC, according to a statement from Hut 8, Bloomberg said.
- The deal is expected to be completed in the third quarter this year, by October, according to reports by Bloomberg and AFP.
- The company was launched in March with exclusive focus on Bitcoin mining and strategic Bitcoin reserve development.
- Existing shareholders, including Donald Trump’s sons will hold around 98 per cent of the combined entity. Eric Trump is the company’s chief strategic officer, and will remain so after the merger, as per a Reuters report.
What’s the Aim? Why Go Public?
In a statement, Eric Trump said the vision “is to create the most investable bitcoin accumulation platform in the market”, AFP reported. The goal is to “build the world’s largest pure play bitcoin mining operation along with a strategic reserve for cryptocurrency.”
Further, according to the statement by Asher Gennot, CEO of hut 8, the deal “marks the next step in scaling American Bitcoin as a purpose-built vehicle for low-cost Bitcoin accumulation at scale. By taking American Bitcoin public, we expect to unlock direct access to dedicated growth capital independent of Hut 8’s balance sheet, while preserving long-term exposure to Bitcoin upside for our shareholders.”
What is Bitcoin or Crypto Mining?
Bitcoin mining is a lot like running a big data center. Companies purchase the mining hardware and pay for the electricity required to keep it running (and cool), according to crypto exchange Coinbase.
For this to be profitable, the value of the earned coins has to be higher than the cost to mine those coins.
(With inputs from Agencies)
