A fundraising bid for $2.1B was filed by the Trump Brothers with the SEC in the wake of the ABTC Nasdaq debut, which was characterized by a 91% price increase in one hour.
On Sept. 3, a filing was submitted to the Securities and Exchange Commission (SEC) by American Bitcoin Corp. (ABTC), a company supported by Donald Trump Jr. and Eric Trump, in a bid to secure $2.1 billion through share sales.
The filing comes in the wake of a turbulent Nasdaq debut where a 91% jump in ABTC stock was witnessed in one hour before the price plummeted below its opening price by closing.
ABTC commenced trading at $6.90 and ascended to $13.20, an ascent that triggered five temporary trading stoppages in the initial hours. However, the share’s value could not maintain its momentum and receded to its opening price before a recovery was mounted at the conclusion of the trading session.
At the time of publication, an upward trajectory was being indicated by the stock in after-market trading, as it was priced at $8.06, representing a gain of approximately 16% for the day.
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American Bitcoin was formed through an all-stock amalgamation with Gryphon Digital Mining, establishing a publicly traded Bitcoin accumulation platform using the ticker ABTC.
The deal that was finalized earlier this year establishes American Bitcoin as the parent company, with its previous shareholders controlling approximately 98% of the merged entity.
The Trump Family’s New Mining Venture
In March, American Bitcoin was established as a controlled affiliate of the energy company Hut 8, which still holds an 80% ownership stake.
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The Trump brothers possess a minority stake in the remaining 20% alongside other co-founders, although the precise ownership distribution has not been revealed. Eric Trump serves as chief strategy officer while Matt Prusak, who previously sold COVID tests, leads the company as its CEO.
The merger was described by Prusak as a prospect to establish a major force in the disjointed Bitcoin mining sector. The company maintains an asset-light model through a key alliance with Hut 8, utilizing existing infrastructure for Bitcoin accumulation instead of developing mining facilities from the ground up.
Operational mining assets are provided by Gryphon, including a proprietary hash rate of 899 petahash per second as of the second quarter 2024. The company prioritizes renewable and low-cost energy sources, a strategy that includes the recent acquisition of natural gas assets in Canada.
The Consolidation of the Sector
The merger is indicative of a broader trend of consolidation in US Bitcoin mining following last year’s halving event, where mining rewards were reduced and economic pressure on operators was intensified.
In the difficult post-halving landscape, enhanced scale and operational streamlining are pursued by firms through mergers and acquisitions to maintain their competitive edge.
A strategic vision for institutional-scale Bitcoin accumulation, along with capital market access from American Bitcoin, is integrated with Gryphon’s mining operations through the new SEC filing, which furthers the Trump family’s expanding crypto ventures.
