American Bitcoin, backed by Eric Trump and Donald Trump Jr, bought 215 Bitcoin for about US$23 million as of May 31, 2025, according to a June 6, 2025 US Securities and Exchange Commission (SEC) filing.

This marks its first major crypto purchase since adopting a treasury strategy inspired by Michael Saylor.

American Bitcoin plans to go public later this year by merging with Gryphon Digital Mining under the ticker ABTC on Nasdaq.

It operates mining sites in New York, Alberta, and Texas through a services agreement with Hut 8, and has one full-time employee.

The company aims to mine Bitcoin below market cost and expand its holdings and presence in the crypto ecosystem.

.source-ref{font-size:0.85em;color:#666;display:block;margin-top:1em;}a.ask-tia-citation-link:hover{color:#11628d !important;background:#e9f6f5 !important;border-color:#11628d !important;text-decoration:none !important;}@media only screen and (min-width:768px){a.ask-tia-citation-link{font-size:11px !important;}}

🔗 Source: The Block

🧠 Food for thought

1️⃣ The industrialization of Bitcoin mining reshapes competitive dynamics

Bitcoin mining has transformed from an activity individuals could perform on home computers to a capital-intensive industrial operation requiring specialized hardware and substantial energy resources.

The sector now demands Application-Specific Integrated Circuits (ASICs), purpose-built machines that have replaced general-purpose computers, making it nearly impossible for small-scale miners to compete effectively 1.

This evolution has driven the formation of large mining operations like American Bitcoin, which operates three substantial facilities across North America as mentioned in the original article.

The United States has emerged as the dominant global mining hub, accounting for over 75% of worldwide Bitcoin mining activity, a dramatic shift from when China led the industry before its crypto mining ban 2.

Energy efficiency has become a critical competitive advantage, with American Bitcoin aiming to achieve efficiency below 15 joules per terahash, a key metric that directly impacts profitability margins 2.

This trend toward consolidation explains why American Bitcoin’s strategy focuses on “producing Bitcoin below market cost,” as efficiency determines survival in an increasingly competitive industry.

2️⃣ Corporate Bitcoin treasury strategies gain mainstream adoption

American Bitcoin’s purchase of $24 million worth of Bitcoin represents the growing corporate trend of holding Bitcoin as a treasury asset rather than immediately converting mined coins to fiat currency.

This strategy, pioneered by MicroStrategy under Michael Saylor, has evolved from being considered radical to becoming an established approach for companies in the sector seeking to benefit from potential Bitcoin appreciation 3.

In 2017, Bitcoin demonstrated its volatility by surging from under $1,000 to over $19,000 before settling around $13,000 by year-end – precisely the kind of price action that makes treasury strategies attractive to mining companies 4.

Mining companies have a unique advantage in accumulating Bitcoin compared to other corporations, as they can generate coins at production cost rather than purchasing them at market prices, creating potential margin advantages.

The SEC filing structure requiring disclosure of these holdings highlights how this practice has become institutionalized, with formal regulatory frameworks now established for reporting corporate cryptocurrency assets.

American Bitcoin’s approach of pursuing “efficient operations to produce Bitcoin below market cost” demonstrates a sophisticated strategy that ties operational efficiency directly to treasury accumulation goals.

3️⃣ Bitcoin mining firms increasingly pursue public market access

American Bitcoin’s planned SPAC merger with Gryphon Digital Mining reflects a broader industry pattern of cryptocurrency companies seeking public market listings to access capital and liquidity.

According to analyst Joseph Vafi, U.S. Bitcoin miners have historically grown through capital markets despite being undervalued by public markets relative to their potential returns 5.

The SPAC structure allows American Bitcoin to go public more quickly than through a traditional IPO process, potentially capitalizing on current market interest in cryptocurrency-related stocks 6.

The merger positions the company to trade under the ticker symbol ABTC on the Nasdaq, providing retail and institutional investors with exposure to Bitcoin mining without directly holding cryptocurrency 6.

The transaction structure also maintains Hut 8’s majority ownership while enabling American Bitcoin to operate as an independent brand with its own capital-raising capabilities, showing how mining companies are creating more sophisticated corporate structures 6.

……