tl;dr
American Bitcoin Corp. (ABTC), a Trump-backed Bitcoin venture, made a volatile debut on the Nasdaq, with its stock surging 91% before crashing back to its opening price. The company, formed from a merger with Gryphon Digital Mining, aims to raise $2.1 billion through an SEC filing. The Trump famil...
**Trump-Backed Bitcoin Venture Rides Volatile Debut, Eyes $2.1B Raise**
When American Bitcoin Corp. (ABTC) debuted on the Nasdaq last week, it was a rollercoaster—literally. The stock surged 91% in an hour, triggering five trading halts, only to collapse back to its opening price by the close. But by the end of the day, it clawed its way back to $8.06, up 16%—a sign that the market might still be watching closely.
The drama wasn’t just about the price swings. ABTC, backed by Donald Trump Jr. and Eric Trump, filed with the SEC on Sept. 3 to raise $2.1 billion through share sales, a move that has investors and critics alike buzzing. The company’s story begins with a merger: ABTC emerged from a stock-for-stock deal with Gryphon Digital Mining, creating a publicly traded Bitcoin accumulation platform. Gryphon, which boasts 899 petahash per second of self-mining hash rate (a measure of mining power), brings operational assets to the table, while ABTC offers capital market access and a strategic vision for scaling Bitcoin holdings.
### A Trump Family Mining Play
The Trump brothers’ involvement adds a unique twist. ABTC was launched in March as a majority-owned subsidiary of Hut 8, an energy company with an 80% stake. The Trumps hold minority interests in the remaining 20%, alongside other partners. Eric Trump, who serves as chief strategy officer, and Matt Prusak, a former CEO of a company that sold rapid COVID tests, lead the charge. Prusak has framed the merger as a bid to dominate the fragmented Bitcoin mining sector by leveraging Hut 8’s infrastructure instead of building costly mining facilities from scratch.
Gryphon’s recent acquisition of natural gas assets in Canada also highlights the company’s focus on renewable and low-cost energy, a critical factor in Bitcoin mining’s profitability.
### Sector Consolidation in a Post-Halving World
ABTC’s push isn’t just about Trump’s name—it’s part of a broader trend. The Bitcoin mining sector has been consolidating since last year’s halving event, which slashed mining rewards and squeezed operators. Companies are merging to scale up, cut costs, and survive in a tougher environment. ABTC’s SEC filing is a step toward becoming a major player, combining Gryphon’s mining operations with ABTC’s access to institutional capital.
But questions linger. The stock’s volatile debut—soaring then crashing—raises doubts about whether the market sees ABTC as a long-term bet or a speculative play. With the Trump family’s name attached, the company’s moves will undoubtedly draw scrutiny, especially as it seeks to raise billions.
For now, the story is still unfolding. Whether ABTC becomes a titan in Bitcoin mining or another cautionary tale in crypto’s wild ride remains to be seen. But one thing is clear: the Trumps’ latest venture has already sparked a frenzy.