Hut 8 Mining Corp (NASDAQ: HUT) saw its stock surge 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 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". Upon completion of the transaction, existing stockholders of American Bitcoin are anticipated to own approximately 98% of the combined company, with Hut 8 maintaining a majority stake. This strategic move is aimed at scaling American Bitcoin as a purpose-built vehicle for low-cost Bitcoin accumulation while providing it with direct access to growth capital.

Asher Genoot, CEO of Hut 8, emphasized the significance of this transaction, stating that it 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." The deal is expected to close as early as Q3 2025, subject to customary closing conditions. Following the merger, 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.