Hut 8 Mining Corp (HUT) saw its stock price surge 5.15% in pre-market trading on Tuesday, following the announcement of a significant merger deal involving its subsidiary. The Bitcoin mining company's shares rallied as investors reacted positively to the news of American Bitcoin Corp, a Hut 8 subsidiary, going public through a SPAC merger.

According to the announcement, American Bitcoin Corp has signed a definitive merger agreement with Nasdaq-listed Gryphon Digital Mining (GRYP). The deal, expected to close in the third quarter of 2025, will result in American Bitcoin achieving a public listing. Post-merger, the combined entity will operate under the American Bitcoin brand and is set to trade on Nasdaq under the symbol ABTC.

This strategic move is anticipated to benefit Hut 8 significantly. As stated by Hut 8 CEO Asher Genoot, the public listing of American Bitcoin is expected to "unlock dedicated growth capital separate from Hut 8's balance sheet, while retaining long-term Bitcoin upside potential for our shareholders." Furthermore, Hut 8 will continue to serve as the exclusive infrastructure and operational partner for American Bitcoin, providing mining equipment and data center support through long-term commercial agreements. This arrangement, coupled with Hut 8's 80% ownership of American Bitcoin, suggests potential for sustained growth and value creation for Hut 8 shareholders.