Gryphon Digital (GRYP) Surges 42.15% on Merger with American Bitcoin, Set to Close in September

Gryphon Digital (GRYP) surged 42.15% on Wednesday, with its share price reaching an intraday high of $1.75—marking the highest level since August 2025. The rally reflects investor enthusiasm for the company’s pending merger with American Bitcoin, a crypto mining venture backed by prominent figures including Donald Trump Jr. and Hut 8. The deal, expected to close in early September, has positioned Gryphon as a key player in the Bitcoin mining sector.

The merger with American Bitcoin, structured as an all-stock transaction, aims to create a publicly traded entity under the ABTC ticker. By combining Gryphon’s operational infrastructure with American Bitcoin’s growing Bitcoin reserves, the new entity is poised to leverage favorable U.S. regulatory developments and institutional interest in crypto. Shareholders have already approved the merger, signaling confidence in the strategic alignment of resources and ownership stakes among the Trump family, Hut 8, and other industry stakeholders.

Financially, Gryphon has raised $5 billion through a mixed securities filing to fuel expansion and operational scaling. Despite challenges such as negative profit margins and high liabilities, the merger is viewed as a restructuring opportunity. The company’s market capitalization has outpaced its book value, indicating investor focus on long-term growth over short-term profitability. Post-merger, the entity plans to optimize costs and enhance efficiency to address operational inefficiencies.

Global expansion is a core component of the strategy, with American Bitcoin targeting acquisitions in Asia to diversify mining operations. This move aligns with broader industry trends, including the 2025 surge in crypto IPOs and regulatory clarity in the U.S., such as the GENIUS Act. These developments have reduced uncertainty for crypto firms, boosting institutional investor interest. The merged entity’s access to Hut 8’s energy infrastructure expertise further strengthens its competitive edge.

Investor sentiment remains cautiously optimistic as the merger nears completion. While Gryphon’s stock has experienced volatility, the recent 42.1% jump underscores confidence in the combined entity’s potential. Strategic partnerships with high-profile backers and a dual focus on mining and Bitcoin accumulation position the firm to capitalize on market opportunities. However, challenges such as Bitcoin price fluctuations and operational scalability will require careful execution to sustain momentum.