Trump-Themed Stock Soars 407% From Delisting Risk... Will It Succeed in Settling on Nasdaq? [Company & Issue]

Trump Son's Investment Coin, American Bitcoin
Plans Backdoor Listing on Nasdaq
Stock Price Soars 407% This Month Amid Policy Expectations and Volatility
Private Gain Controversy Grows... Democrats Propose Anti-Corruption Act

EPA Yonhap News

'American Bitcoin', a cryptocurrency company founded by the son of US President Donald Trump, is planning a backdoor listing on Nasdaq. The stock price of Gryphon Digital Mining, a Bitcoin mining company that is set to be acquired for the backdoor listing, has already been experiencing sharp fluctuations and increased volatility. While the backdoor listing process could be completed as early as the third quarter, growing controversy over President Trump’s personal gains, particularly in US political circles, suggests the listing process may not proceed smoothly.

'American Bitcoin' Plans Nasdaq Backdoor Listing... Rising Policy Expectations

Eric Trump, the second son of President Donald Trump. He is one of the founders of American Bitcoin and serves on the board as the Chief Strategy Officer (CSO). Photo by Reuters Yonhap News

On May 13 (local time), American Bitcoin announced its plan for a backdoor listing on Nasdaq. The company intends to merge with Gryphon Digital Mining, a Bitcoin mining subsidiary of cryptocurrency investment firm Hut 8 (HUT8), and list on Nasdaq. Taking into account the merger procedures and timeline, the goal is to complete the listing as early as the third quarter of this year.

American Bitcoin was founded in March by Eric Trump, the second son of President Trump, who serves as Chief Strategy Officer (CSO). His older brother, Donald Trump Jr., is also known to have invested in American Bitcoin. Both brothers currently serve as co-CEOs of the Trump Organization, the Trump family’s real estate business.

In a statement, Eric Trump emphasized, "Our goal is to make American Bitcoin the most valuable Bitcoin accumulation platform in the market," adding, "This listing announcement is an important milestone on that journey." Last September, he established the cryptocurrency company World Liberty Financial and was also involved in the launch of the meme coin 'OfficialTrump ($TRUMP)', named after his father, President Trump.

Expectations are growing that American Bitcoin could benefit from future Trump administration policies. According to cryptocurrency media outlet CoinDesk, Bo Hines, head of the US Presidential Advisory Board on Digital Assets, stated at the Consensus 2025 crypto forum held in Toronto, Canada on May 14, "President Trump will sign legislation related to stablecoins and cryptocurrencies by August," and "members of the White House and digital asset working groups are still working on strategic Bitcoin reserves."

Gryphon Digital Mining’s Stock Surges and Plunges... Escapes Delisting Fears

The stock price of Gryphon Digital Mining, which is set to merge with American Bitcoin, has already been extremely volatile. Earlier this month, the stock was at $0.28, but soared to $1.42 on May 12, a rise of more than 407%. However, as profit-taking sales poured in, it plunged 47% to $0.75 on May 14.

Gryphon Digital Mining, which had been struggling below the $1 mark this year, has alleviated delisting concerns thanks to the positive news of its merger with American Bitcoin. According to Bloomberg, Gryphon Digital Mining’s share price fell below the minimum Nasdaq listing requirement of $1 in July last year, and in September 2024, the company received a notice of non-compliance from the Nasdaq exchange. On the Nasdaq, if a stock price falls below $1, a grace period is granted for recovery; if the price does not recover, delisting is considered.

The main reasons for Gryphon Digital Mining’s poor stock performance were a significant decrease in unmined Bitcoin reserves and declining profitability due to intensified competition among mining companies. According to Binance, the world’s largest cryptocurrency exchange, 19,840,000 Bitcoins had been mined as of last month. Considering the total supply of Bitcoin is fixed at 21 million, 94.47% of all Bitcoins have already been mined.

Meanwhile, Bitcoin mining costs are rising rapidly. In April 2024, the cost to mine one Bitcoin was about $40,000 (approximately 55.86 million KRW), but last month it exceeded $80,000 (about 111.72 million KRW).

Trump Family Faces Growing Private Gain Controversy... Democrats Propose 'End Crypto Corruption Act'

The official Trump website for the meme cryptocurrency announced by US President Donald Trump in January. OfficialTrump (gettrumpmemes.com)

In the US political arena, criticism is mounting that President Trump is seeking private gain through cryptocurrencies. Led by the Democratic Party, there are moves to pass regulatory legislation banning public officials and their families from issuing or promoting cryptocurrencies. If such a bill passes, the investment value of American Bitcoin could be threatened.

According to CNN, the federal regulatory bill on cryptocurrencies and stablecoins, known as the GENIUS Act, was voted down by the Democratic Party on May 10. The bill had been expected to pass easily due to bipartisan agreement, but controversy over cryptocurrency investments and private gains involving President Trump and his family ultimately led to its rejection. If the bill had passed, stablecoins would have been legalized, increasing issuance within the US and revitalizing the cryptocurrency market.

Senator Elizabeth Warren, a Democrat who led the opposition to the bill, criticized, "The bill would make it easier for the president and his family to line their own pockets," adding, "This is corruption, and no senator should support it." Senator Jeff Merkley also stated, "The current situation, where one can purchase cryptocurrency owned or controlled by President Trump in order to gain influence with him, is a serious structure of corruption," noting, "This threatens national security and undermines public trust in the government."

Alongside the defeat of the GENIUS Act, Democrats also introduced the 'End Crypto Corruption Act of 2025'. This bill would impose a complete ban on public officials and their families from engaging in cryptocurrency-related businesses. If enacted, public officials in the US, as well as their spouses and children, would be prohibited from issuing or promoting cryptocurrencies and digital assets during their term of office and for one year after leaving office.

President Trump has maintained that there is no issue regarding these private gain allegations. The White House has emphasized, "President Trump’s assets are held in a trust managed by his children, and the president himself is not involved in corporate decision-making." Eric Trump also explained, "The real estate and cryptocurrency businesses were projects underway even before my father’s re-election."