American Bitcoin stock tumbles 50% as BTC proxy trade unravels
American Bitcoin Corp (ABTC) shares plummeted over 50% due to the broader crypto market downturn and its link to Bitcoin's price.Summary
Shares of American Bitcoin Corp (ABTC), a Bitcoin-mining and treasury company led by Eric Trump, plunged by more than 50% in early trading on Tuesday, hitting an intraday low of $1.75. This steep decline, which represents a roughly 78% drop from its post-listing high, reflects the broader unwinding and volatility across the digital-asset sector and its spillover into related equities.
ABTC's business is closely tied to the price of Bitcoin (BTC), which has recently experienced a sharp pullback from its mid-October peak. This market pressure is affecting other crypto-linked equities as well, such as MicroStrategy (MSTR), whose market capitalization has fallen below the value of its Bitcoin holdings. Despite the stock pressure, American Bitcoin reported a swing to profitability in the third quarter, with $3.47 million in net income and $64.2 million in revenue, and added 3,000 BTC to its reserves.
(Source：Cointelegraph)