Hut 8 Mining Corp (NASDAQ: HUT) saw its stock soar by 15.12% in pre-market trading on Monday, following a major announcement regarding its majority-owned subsidiary, American Bitcoin. The cryptocurrency mining company revealed that American Bitcoin has entered into a definitive merger agreement with Gryphon Digital Mining, Inc. (NASDAQ: GRYP) in a stock-for-stock transaction that will take American Bitcoin public.

The merger deal is set to create a new entity that will operate under the American Bitcoin brand and trade on NASDAQ under the ticker symbol "ABTC". Upon completion of the transaction, existing stockholders of American Bitcoin are anticipated to own approximately 98% of the combined company, with Hut 8 retaining a majority stake. This strategic move is expected to provide American Bitcoin with direct access to growth capital while allowing Hut 8 shareholders to maintain exposure to Bitcoin's upside potential.

Asher Genoot, CEO of Hut 8, emphasized the significance of this transaction, stating, "This transaction marks the next step in scaling American Bitcoin as a purpose-built vehicle for low-cost Bitcoin accumulation at scale." The deal is expected to close as early as Q3 2025, subject to customary closing conditions. Furthermore, Hut 8 will continue to serve as American Bitcoin's exclusive infrastructure and operations partner, potentially generating stable, contracted revenue streams for Hut 8's Power and Digital Infrastructure segments. This development signals a significant step in Hut 8's strategy to capitalize on the growing Bitcoin mining industry while diversifying its business model. Adding to the positive sentiment, Canaccord Genuity has maintained a Buy rating on Hut 8 Mining Corp, further boosting investor confidence in the company's prospects.