The day after American Bitcoin, under the Trump family, went public, its stock price fell by over 16%! Why did the Bitcoin holdings face a dumping wave?
The stock price of American Bitcoin Corporation (ABTC), a Bitcoin mining company under the Trump family, plummeted over 16% the day after its listing, dropping sharply from a first-day high of $13 to $6.70, with a market capitalization shrinking to $6.2 billion. This big dump is attributed to price discovery fluctuations following its reverse merger listing, the overall cooling of Bitcoin holdings sector, and the recent poor performance of Trump-related assets. This article will deeply analyze whether ABTC can overcome its difficulties from the perspectives of industry saturation, valuation premium, and business model.
Big dump of 16% on the second day of listing: Normal fluctuation during the price discovery period?
The Trump family supports the mining company American Bitcoin (code ABTC), which saw its stock price increase nearly 17% on its first day of trading to $8.04 per share, with an intraday high of $14. The stock's trading volume exceeded 29 million shares on its first day.
Eric Trump said: "We have a core quality mining business, with current mining costs at only 50% of the market price of Bitcoin. The company holds hundreds of millions of dollars in hardware assets and data centers... While others can only buy at face value, we can acquire Bitcoin at a significant discount."
According to estimates by Bloomberg, the successful listing of American Bitcoin means that the shares held by Trump's second son, Eric Trump, are worth over 500 million dollars.
Founded in March this year, American Bitcoin was co-founded by Eric Trump and supported by Donald Trump Jr. (the eldest son). It is a cryptocurrency mining and holdings company. In June, American Bitcoin raised $220 million through a private placement of 11 million new shares. Hut 8 holds 80% of its shares, while the remaining 20% is controlled by American Data Centers, supported by the Trump brothers. Eric Trump serves as the company's Chief Strategy Officer.
After ABTC went public through a reverse merger, its stock price experienced a typical price discovery process. Historical data shows that newly listed companies often experience significant fluctuations: for example, Circle initially soared from $64 to $300 upon listing, and then gradually fell back to the $100 support level; Bullish surged to $117 after its IPO last August, but has now dropped below $50. The short-term fluctuations of ABTC align with the norms of newly listed stocks, but there are deeper risks behind it.
Bitcoin Holdings Stuck in Bear Market: High Premium and Industry Saturation as Main Reasons
Bitcoin Holdings zone is currently experiencing a systemic sell-off. Strategy (MSTR) has fallen over 30% from its year-to-date high; Japan's "MicroStrategy" Metaplanet has plummeted 61% from its year-to-date high. The core issue is:
Valuation premium is too high: MSTR's enterprise value is $38 billion higher than its Bitcoin holdings, and Metaplanet's premium exceeds $4 billion;
Industry oversaturation: Over 100 listed companies hold nearly 1 million Bitcoins in total, with a significant fund diversion effect.
The uniqueness of ABTC lies in obtaining Bitcoin through mining rather than market purchases, which reduces holdings costs, but has not offset the overall downturn in the zone.
Trump-related assets continue to weaken, increasing selling pressure:
Trump Media's stock price has fallen 68% from its high in October 2024;
Official Trump coin has fallen 90% from its January peak;
The newly listed World Liberty Financial token has halved 50% from Monday's high this week.
ABTC is not directly related to Trump, but market sentiment transmission has led to cautious investors.
ABTC Recovery Prospects: Valuation Controversies and Industry Headwinds Coexisting
ABTC market capitalization of 6.2 billion USD has a huge gap with its 267 million USD Bitcoin holdings value, raising questions about its valuation rationality. Although its mining model for acquiring Bitcoin has cost advantages, it must face the following in the short term:
Bitcoin Holdings zone funds flowing out;
The volatility of new stocks continues;
Confidence in Trump-themed assets is collapsing.
Historical data shows that similar to IPOs, most experience a continuous pullback, and the short-term recovery probability of ABTC is relatively low.
Conclusion
The sharp decline in ABTC stock price is the result of a triple effect of new stock fluctuations, a cooling zone, and market sentiment. Its valuation premium and industry saturation issues are difficult to resolve in the short term. Investors need to pay attention to Bitcoin price trends, institutional fund movements, and the progress of the company's mining efficiency improvements. During the overall bottom-seeking process of Bitcoin holdings stocks, ABTC may face further adjustment pressure.
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The day after American Bitcoin, under the Trump family, went public, its stock price fell by over 16%! Why did the Bitcoin holdings face a dumping wave?
The stock price of American Bitcoin Corporation (ABTC), a Bitcoin mining company under the Trump family, plummeted over 16% the day after its listing, dropping sharply from a first-day high of $13 to $6.70, with a market capitalization shrinking to $6.2 billion. This big dump is attributed to price discovery fluctuations following its reverse merger listing, the overall cooling of Bitcoin holdings sector, and the recent poor performance of Trump-related assets. This article will deeply analyze whether ABTC can overcome its difficulties from the perspectives of industry saturation, valuation premium, and business model.
Big dump of 16% on the second day of listing: Normal fluctuation during the price discovery period?
The Trump family supports the mining company American Bitcoin (code ABTC), which saw its stock price increase nearly 17% on its first day of trading to $8.04 per share, with an intraday high of $14. The stock's trading volume exceeded 29 million shares on its first day.
Eric Trump said: "We have a core quality mining business, with current mining costs at only 50% of the market price of Bitcoin. The company holds hundreds of millions of dollars in hardware assets and data centers... While others can only buy at face value, we can acquire Bitcoin at a significant discount."
According to estimates by Bloomberg, the successful listing of American Bitcoin means that the shares held by Trump's second son, Eric Trump, are worth over 500 million dollars.
Founded in March this year, American Bitcoin was co-founded by Eric Trump and supported by Donald Trump Jr. (the eldest son). It is a cryptocurrency mining and holdings company. In June, American Bitcoin raised $220 million through a private placement of 11 million new shares. Hut 8 holds 80% of its shares, while the remaining 20% is controlled by American Data Centers, supported by the Trump brothers. Eric Trump serves as the company's Chief Strategy Officer.
After ABTC went public through a reverse merger, its stock price experienced a typical price discovery process. Historical data shows that newly listed companies often experience significant fluctuations: for example, Circle initially soared from $64 to $300 upon listing, and then gradually fell back to the $100 support level; Bullish surged to $117 after its IPO last August, but has now dropped below $50. The short-term fluctuations of ABTC align with the norms of newly listed stocks, but there are deeper risks behind it.
Bitcoin Holdings Stuck in Bear Market: High Premium and Industry Saturation as Main Reasons
Bitcoin Holdings zone is currently experiencing a systemic sell-off. Strategy (MSTR) has fallen over 30% from its year-to-date high; Japan's "MicroStrategy" Metaplanet has plummeted 61% from its year-to-date high. The core issue is:
The uniqueness of ABTC lies in obtaining Bitcoin through mining rather than market purchases, which reduces holdings costs, but has not offset the overall downturn in the zone.
Trump-related stocks dragged down: Associated assets fell 90%, becoming a hidden concern
Trump-related assets continue to weaken, increasing selling pressure:
ABTC is not directly related to Trump, but market sentiment transmission has led to cautious investors.
ABTC Recovery Prospects: Valuation Controversies and Industry Headwinds Coexisting
ABTC market capitalization of 6.2 billion USD has a huge gap with its 267 million USD Bitcoin holdings value, raising questions about its valuation rationality. Although its mining model for acquiring Bitcoin has cost advantages, it must face the following in the short term:
Historical data shows that similar to IPOs, most experience a continuous pullback, and the short-term recovery probability of ABTC is relatively low.
Conclusion
The sharp decline in ABTC stock price is the result of a triple effect of new stock fluctuations, a cooling zone, and market sentiment. Its valuation premium and industry saturation issues are difficult to resolve in the short term. Investors need to pay attention to Bitcoin price trends, institutional fund movements, and the progress of the company's mining efficiency improvements. During the overall bottom-seeking process of Bitcoin holdings stocks, ABTC may face further adjustment pressure.