Crypto Hustle

The Equity Dispatch #42

This week, we review the troubled history of Gryphon Digital Mining (GRYP), the reverse-merger partner of Hut 8’s (HUT) new spin-off, American Bitcoin, soon to trade on Nasdaq as ABTC.

HUT will own 80% of the spin-off. GRYP is the junior partner in the deal; its shareholders get 2% of the spin-off. But there is magic somewhere in the numbers: based on GRYP's own current market cap, the 2% allocation implies a valuation for American Bitcoin that is more than twice the current market cap for all of HUT—even though most of its ABTC's operations are still currently contained in HUT as a majority owned subsidiary.

We also take a look at the “crypto treasury” strategy that is helping nano caps pump their value by raising the crypto flag.