American Bitcoin Stock Tumbles 50% As BTC Proxy Trade Unravels

ABTC shares plunged by more than 50% in early trading as the broader crypto market downturn triggered a sharp repricing of mining and treasury stocks.

Shares of American Bitcoin Corp (ABTC), the Bitcoin-mining and treasury company headed by Eric Trump, plunged on Tuesday as difficult market conditions continued to pressure crypto-linked equities.

ABTC, which debuted on the Nasdaq in early September following a reverse merger with Gryphon Digital Mining, lost more than half its value in early trading. The stock reached an intraday low of $1.75, representing a 51% decline on the day, according to data from Yahoo Finance.

The shares are now down roughly 78% from their post-listing high of $9.31 on Sept. 9, underscoring the broad unwinding across the digital-asset sector and its spillover into related equities.

While no single catalyst appeared to drive Tuesday’s steep sell-off, crypto-linked stocks have faced renewed volatility in recent weeks amid a broad retreat in digital assets and profit-taking across technology shares.

American Bitcoin’s business is closely tied to the price of Bitcoin (BTC), which has experienced one of its sharpest pullbacks in history since mid-October, falling from a peak near $126,000 to a November low of below $80,000.

Related: Scaramucci family invested over $100M in Trump’s Bitcoin mining firm: Report

The crypto market downturn has triggered a widespread repricing of crypto-exposed equities, particularly among miners and companies that hold large Bitcoin treasuries.

That reassessment has unfolded despite American Bitcoin Corp reporting a swing to profitability in the third quarter, when net income reached $3.47 million and revenue climbed to $64.2 million.

The company also added 3,000 Bitcoin to its reserves in the third quarter, lifting total holdings to more than 4,000 BTC.

Source: CoinTelegraph