In a move that further solidifies the Trump family’s foothold in the cryptocurrency sector, American Bitcoin Corp (ABTC) – co-founded by Eric Trump and Donald Trump Jr. – has announced plans to go public through a landmark merger with Gryphon Digital Mining. The all-stock transaction, valued at approximately $1.25 billion, will create one of the largest publicly-traded Bitcoin mining operations in North America, with the Trump family maintaining overwhelming control of the combined entity.
The deal, expected to close in Q4 2024, will see the newly formed company list on the Nasdaq exchange under the ticker “GRYP,” marking a significant milestone in the intersection of cryptocurrency, traditional finance, and political influence. According to SEC filings, the Trump brothers and existing shareholders will retain a staggering 98% ownership stake post-merger, an unusually high retention that underscores their long-term commitment to the venture.
This strategic merger combines ABTC’s political connections and energy procurement advantages with Gryphon’s established mining infrastructure and ESG-focused operations. Key details of the transaction include:
- Valuation: $1.25 billion enterprise value
- Ownership Structure: 98% retained by pre-merger shareholders
- Mining Capacity: Projected 8 EH/s hash rate by 2025
- Energy Strategy: 92% carbon-neutral operations through renewable energy contracts
- Leadership: Gryphon CEO Rob Chang to helm the combined company
Notably, the Trump brothers will join the board of directors but will not hold executive positions, according to insiders familiar with the corporate structure. This arrangement appears designed to leverage their political capital while maintaining operational continuity from Gryphon’s experienced management team.
The public listing comes amid a broader embrace of cryptocurrency by the Trump political apparatus. Former President Donald Trump has dramatically shifted his stance on digital assets in recent years, moving from 2019’s “I am not a fan of Bitcoin” to 2024’s campaign accepting crypto donations and pledging to “end the Biden war on crypto.”
Political analysts see the mining company’s public debut as part of a calculated strategy:
“This isn’t just a business venture – it’s political positioning,” explained Georgetown University professor and campaign finance expert Lydia Bennett. “By going public with a crypto mining operation weeks before the election, the Trump family is sending an unmistakable signal to the crypto community about where their loyalties lie.”
The timing appears deliberate. The merger announcement coincides with the Republican National Convention and follows recent pro-crypto policy proposals from the Trump campaign, including promises to:
- Halt SEC enforcement actions against crypto companies
- Allow Bitcoin mining on federal lands
- Create tax incentives for domestic mining operations
The cryptocurrency mining sector has responded enthusiastically to the news, with Bitcoin mining stocks collectively gaining 14% in the week following the announcement. Industry leaders see the merger as validation of North America’s growing dominance in Bitcoin production.
“Having a publicly-traded mining company of this scale with direct ties to political leadership changes the game,” said Marathon Digital CEO Fred Thiel. “It brings institutional credibility while potentially influencing policy in ways that benefit the entire sector.”
The deal structure has raised eyebrows on Wall Street, however. The 98% ownership retention is nearly unprecedented for a public listing, leading some analysts to question liquidity concerns.
“Typically we’d expect to see more dilution in a deal like this,” noted Bernstein analyst Gautam Chhugani. “The minimal float suggests this is more about establishing a public vehicle for future growth than raising immediate capital.”
The merger will face intense regulatory scrutiny from multiple angles:
- SEC Review: The commission has recently increased oversight of crypto-related public listings
- FEC Compliance: Potential campaign finance questions regarding corporate-political ties
- Energy Regulations: Scrutiny of the company’s carbon-neutral claims
Gryphon CEO Rob Chang addressed these concerns in a recent investor call: “We’ve engaged proactively with regulators throughout this process. Our energy strategy and corporate governance meet all applicable standards, and we’re confident in a smooth approval process.”
The ABTC-Gryphon merger arrives as cryptocurrency emerges as an unexpected wedge issue in the 2024 presidential race. Recent polling shows crypto ownership skews heavily toward younger voters, a demographic both campaigns are aggressively courting.
Democratic strategists acknowledge the challenge: “The Trump campaign has successfully framed crypto as an issue of financial freedom versus government overreach,” said Biden campaign advisor Tom Perez. “We need to counter that narrative without alienating progressive critics of crypto’s environmental impact.”
For American Bitcoin Corp, the political dimensions create both opportunities and risks. While the Trump connection provides visibility and potential policy advantages, it also makes the company a lightning rod for criticism from crypto skeptics and political opponents.
Post-merger, the company plans to:
- Expand mining operations to three additional states in 2025
- Invest in next-generation immersion cooling technology
- Develop a strategic reserve of mined Bitcoin
- Explore AI/blockchain compute synergies
Industry observers will be watching several key metrics:
- Whether the stock attracts institutional investment despite the limited float
- How the company navigates political headwinds post-election
- If it can maintain energy efficiency at scale
As the first major crypto venture with direct ties to a presidential campaign, American Bitcoin Corp’s public debut represents more than just another mining operation going public. It signals cryptocurrency’s arrival as both a serious financial asset class and a potent political force – with the Trump family positioning themselves at the center of both revolutions.
The Nasdaq bell ringing ceremony, tentatively scheduled for November 2024, may well coincide with the climax of the presidential campaign, ensuring that cryptocurrency remains in the national spotlight regardless of which candidate ultimately prevails. One thing is certain: the lines between crypto, politics, and traditional finance have never been more blurred.