Hut 8 Mining Corp (NASDAQ: HUT) saw its stock surge 10.73% in pre-market trading on Monday following a major announcement regarding its subsidiary, American Bitcoin. The energy infrastructure platform 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 new entity that will operate under the American Bitcoin brand and trade on NASDAQ under the ticker symbol "ABTC". 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. 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.

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. 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.