Trump-linked bitcoin miner faces immediate pressure following Nasdaq debut
American Bitcoin (ABTC), a newly listed bitcoin mining firm partly owned by members of the Trump family, has seen its stock fall below its initial public offering (IPO) price just one day after debuting on the Nasdaq.
On Thursday, ABTC shares slid 15% to $6.83, dipping under the IPO price of $6.90. The decline comes after a volatile first trading session, where the stock briefly touched $14.65 before retreating sharply.
Hybrid strategy under market stress
The company is 80% owned by Hut 8 Mining and 20% by Donald Trump Jr. and Eric Trump, following its merger with Gryphon Digital Mining (GRYP). ABTC holds 2,443 bitcoin worth around $269 million at current prices and has positioned itself with a hybrid model: combining bitcoin mining operations with long-term asset accumulation.
The firm also filed for an at-the-market equity raise of up to $2.1 billion, signaling ambitious expansion plans at a time when the mining industry is struggling with high operating costs and growing competition.
Competitive landscape intensifies
Bitcoin mining remains one of the most brutally competitive industries, with rising energy costs consuming as much as 50% of mining revenue. Meanwhile, increasing network difficulty continues to squeeze profit margins.
Hardware manufacturers like Bitmain are also adding pressure by flooding the market with more efficient rigs, forcing miners to constantly reinvest in equipment to stay competitive. To adapt, several mining companies are diversifying into AI computing and data center services.
Market reaction mirrors crypto sentiment
The sell-off in ABTC shares mirrors broader weakness across the mining sector. Marathon Digital (MARA) and Riot Platforms (RIOT) also traded lower on Thursday, while Bitcoin itself slipped 2% in the past 24 hours to trade near $109,568.
Despite the immediate decline, ABTC’s treasury-focused approach could provide longer-term stability. By stockpiling bitcoin, the company aims to benefit from price appreciation while offsetting the volatility of mining revenues.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.