Gryphon Digital Mining: 'Hold' On American Bitcoin's Reverse Takeover

Summary GRYP earns Bitcoin via FPPS mining pools, which gives it relatively steady payouts that include transaction ￰0￱ shareholders recently approved a reverse takeover by American Bitcoin ￰1￱ stake will now be around 2% post-close, with a ticker change to “ABTC” ￰2￱ Bitcoin is majority owned by Hut 8 Corp. There’s a disclosed market stand-off period that applies per the merger’s S-4 filing. Still, GRYP’s Q2 2025 showed tight liquidity and declining ￰3￱ combined entity also appears to be somewhat constrained. Ultimately, I think the implied valuation for the combined entity seems ￰4￱ I lean towards a neutral “Hold” rating at these ￰5￱ Digital Mining, Inc.

( GRYP ) is a pure-play cryptocurrency mining company focused on Bitcoin (BTC-USD). GRYP generates revenue by directing the hashrate of its ASIC mining machines to pools such as Foundry USA under the Full Pay Per Share (FPPS) ￰6￱ gives GRYP relatively stable payouts and includes transaction ￰7￱ recent webcast confirmed that GRYP’s shareholders approved the reverse takeover by American Bitcoin Corp. (ABTC), which adds mining infrastructure and gives it extra financial stability as a combined entity. Yet, at this point, it seems there's a substantial premium embedded for the combined entity.

Thus, I feel it’s prudent to rate GRYP a “Hold” for ￰8￱ Hashrate Play Gryphon Digital Mining is a cryptocurrency mining company that mostly focuses on Bitcoin using its ASIC machines. Basically, GRYP contributes computing power (i. e., hashrate) to mining pools in exchange for Bitcoin ￰9￱ went public back in February 2024 following a reverse merger with Akerna Corp. , which, interestingly, was specialized in SaaS cannabis compliance. Today, GRYP is headquartered in Las Vegas, Nevada.) ￰10￱ give you an idea, FPPS means miners receive a fixed payout for each valid share of work they submit, regardless of whether the pool actually wins a Bitcoin block.

Also, FPPS includes transaction fees from blocks, which makes it more profitable than regular PPS ￰11￱ all, this means miners also share in both Bitcoin revenue ￰12￱ Mining Reverse Takeover Currently, GRYP is finalizing a merger with American Bitcoin Corp. (ABTC) to expand its mining capacity. A special shareholder meeting took place on August 27, 2025, and the reverse takeover was approved (the votes were counted at 12:35 in the recording). As such, it’s expected that the new entity will be called American Bitcoin ￰13￱ trade under the new ticker “ABTC.” Effectively, current GRYP shareholders will be heavily diluted, but will get a little equity in a much larger mining operation.

GRYP’s shares remain for now until the Nasdaq approves the branding and ticker update.) LLC., which itself owns 80% of American Bitcoin ￰14￱ Trump is listed as owning 9.3% of American Bitcoin in the merger's S-4 ￰15￱ Trump ￰16￱ also been reported as owning a portion of American Bitcoin, but if he owns less than 5% he wouldn't show up in this disclosure, so I can't confirm his stake.). Basically, this will be the earlier of a) 1 year after the closing date of the deal, or b) 18 months after March 31, 2025. Nonetheless, the publicly traded GRYP shares today will correspond to just 2% of the combined ￰17￱ my view, that is a relatively thin float if Hut 8 or Eric Trump decides to sell a portion of their stakes.

So, it’s worth monitoring this as a potential risk ￰18￱ any event, ABTC today generates its revenues by mining Bitcoin through its fleet of ASIC miners, similar to ￰19￱ fact, ABTC is also technically a pure-play Bitcoin miner with a comparable model to GRYP that focuses on hashrate to mining pools in exchange for Bitcoin. So, the strategic rationale here is ￰20￱ will bring larger operational resources , additional miners, hosting infrastructure, plus get a publicly traded ticker in the process.) show the combined entity will have $318.0 thousand in cash, $49.0 thousand in marketable securities, and $787.0 thousand in digital assets. Therefore, that amounts to approximately $1.2 million in liquid resources, against no financial debt (total liabilities of $11.2 million).), indicating a P/B of 22.2 (assuming the implied market cap of $5.1 billion I previously mentioned).

Note that per the merger's S-4 filing, GRYP had a stockholders' deficit of $7.7 million by Q1 2025 (by Q2, its book value declined further to $11.0 million ). So, ABTC's book value of $115.8 million partly offsets GRYP's negative book ￰21￱ remaining portion of the reported combined Q1 book value of $230.0 million comes from pro-forma ￰22￱ from adding $114.3 million in goodwill and $121.1 million in net PPE from ABTC's books. Similarly, the combined entity would have had Q1 2025 revenues of only $13.9 million and a net loss of $32.6 ￰23￱ we annualize its topline, it amounts to just $55.6 million, which implies an expensive P/S of ￰24￱ context, GRYP’s sector’s median P/B and P/S are around 3.6 and 3.4, respectively.).

So, I imagine they’re probably going to do a capital raise post-transaction or issue some debt to increase their operating ￰25￱ at the end of the day, I believe the GRYP stock appears too expensive to warrant a bullish rating at this point. conclusion: Neutral For Now Overall, I think GRYP’s shareholders have clearly benefited from this transaction, as the shares have rapidly appreciated since the reverse merger was announced. However, the combined entity still has many uncertainties, and it does seem to trade at a substantial premium at this point. Naturally, consolidation is critical in Bitcoin mining, as economies of scale lower per-bitcoin production costs.

It’s possible there will be considerable synergies post-transaction that justify such a ￰26￱ for now, I feel it’s prudent to remain neutral on the stock until we have more details post-transaction.