Hut 8 Mining Corp (HUT) saw its stock price surge 6.67% in intraday trading on Tuesday, as investors reacted positively to news of a significant merger deal involving its subsidiary, American Bitcoin Corp. The Bitcoin mining company's shares rallied following the announcement that American Bitcoin Corp would go public through a SPAC merger with Nasdaq-listed Gryphon Digital Mining (GRYP).

According to the announcement, the merger is expected to close in the third quarter of 2025. 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 CEO Asher Genoot: "This transaction will unlock dedicated growth capital separate from Hut 8's balance sheet, while retaining long-term Bitcoin upside potential for our shareholders." 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.

Adding to the investor excitement is American Bitcoin's connection to the Trump family. Eric Trump, son of former President Donald Trump, serves as the company's Chief Strategy Officer and is a co-founder. This high-profile association, coupled with the potential for rapid growth in the cryptocurrency mining sector, appears to be driving the positive market sentiment. The enthusiasm is further evidenced by the dramatic rise in Gryphon Digital Mining's stock price, which has reportedly surged nearly 330% over the past five days in response to the merger news. As Hut 8 retains an 80% ownership of American Bitcoin, this deal suggests potential for sustained growth and value creation for Hut 8 shareholders.