Hut 8 Mining Corp (NASDAQ | TSX: HUT) saw its stock surge 10.73% in pre-market trading following a significant announcement regarding its majority-owned subsidiary, American Bitcoin. The company revealed that American Bitcoin has entered into a definitive merger agreement to go public with Gryphon Digital Mining, Inc. (NASDAQ: GRYP) in a stock-for-stock transaction.

The merger deal is set to create a combined entity that will operate under the American Bitcoin brand and is expected to trade on NASDAQ under the ticker symbol "ABTC". This strategic move is aimed at scaling American Bitcoin as a purpose-built vehicle for low-cost Bitcoin accumulation. Asher Genoot, CEO of Hut 8, stated that the transaction would "unlock direct access to dedicated growth capital independent of Hut 8's balance sheet, while preserving long-term exposure to Bitcoin upside for our shareholders."

Upon completion of the transaction, existing stockholders of American Bitcoin are expected to own approximately 98% of the combined company, with Hut 8 maintaining a majority ownership. The deal is anticipated to close as early as Q3 2025. Furthermore, Hut 8 will continue to serve as American Bitcoin's exclusive infrastructure and operations partner through long-term commercial agreements, potentially generating stable 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.