American Bitcoin Corp stock tumbles 50% amid crypto repricing
Shares of American Bitcoin Corp (ABTC), a Bitcoin mining and treasury company led by Eric Trump, sank more than 50% on Tuesday as weakness across digital assets prompted a sharp sell-off in crypto-related equities.
ABTC, which began trading on Nasdaq in early September following a reverse merger with Gryphon Digital Mining, fell to an intraday low of $1.75, a 51% decline for the session, according to data from Yahoo Finance.
The shares are now down roughly 78% from their post-listing peak of $9.31 on Sept. 9, reflecting the broader unwinding in digital assets and the spillover to associated stocks.
While no single catalyst was apparent for Tuesday’s drop, crypto-linked equities have seen heightened volatility in recent weeks amid a broad pullback in digital assets and profit-taking across technology names.
American Bitcoin’s results are closely correlated with Bitcoin (BTC). Since mid-October, BTC has staged one of its steepest retreats on record, sliding from a high near $126,000 to a November low below $80,000.
Revaluation of crypto-exposed stocks
The market downturn has driven a widespread repricing of crypto-exposed shares, notably among miners and firms holding sizable Bitcoin treasuries.
This reassessment has unfolded despite American Bitcoin Corp reporting a return to profitability in the third quarter, with net income of $3.47 million and revenue of $64.2 million.
The company also added 3,000 Bitcoin to its reserves during the quarter, increasing total holdings to more than 4,000 BTC.
American Bitcoin is not the only firm under pressure as Bitcoin declines. Shares of Strategy (MSTR), led by Michael Saylor, have dropped more than 50%, bringing the company’s market capitalization below the value of its Bitcoin holdings.
Eric Trump said last month that he remains unconcerned by recent price swings, characterizing volatility as advantageous for investors seeking to build positions at more favorable levels.
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