Gryphon Digital Mining shareholders vote to combine with Trump-linked bitcoin mining venture

Bitcoin miner Gryphon Digital Mining (ticker GRYP), the firm that will merge with a Hut 8 subsidiary to form the Trump-connected American Bitcoin company, has approved the plan, according to a shareholder meeting on Wednesday.

"Gryphon stockholders approved the previously announced stock-for-stock merger transaction with American Bitcoin," the firm wrote in an announcement on Friday. "In connection with the Transaction and following approval by its Board of Directors, Gryphon will implement a reverse stock split of the Company's outstanding shares of common stock at a ratio of 5-for-1."

The reverse stock split, a corporate action that reduces the number of a company's outstanding shares through consolidation, "is being effected to satisfy Nasdaq's listing requirements for minimum bid price." The transaction will not affect the firm's market capitalization or shareholder interests, Gryphon said.

The stock split is scheduled for Tuesday, Sept. 2, following the Labor Day holiday in the U.S. The new stock will trade under the ticker ABTC on the Nasdaq, as previously announced, under the American Bitcoin brand.

Both eldest Trump sons, Eric and Donald Jr., maintain interests in the joint crypto venture. Announced in March, publicly-traded mining company Hut 8 (ticker HUT) will control approximately an 80% stake in the firm, with the remaining 20% held by American Data Centers, an entity backed by the Trump sons.

Eric Trump serves as the chief strategy officer.

The company has said it plans to accumulate a strategic Bitcoin reserve primarily through its mining operations. It raised $220 million by selling shares in a private placement to acquire Bitcoin and mining equipment.

GRYP is down approximately 11.56% on the day while HUT is up slightly at 0.53%, according to The Block's price page.