Bitcoin Miner American Bitcoin (ABTC) shares fell below their initial IPO price after falling 15% on Thursday, the day after its debut on Nasdaq.
ABTC was trading at $6.83 per share, starting from the IPO price of $6.90.
The company, which is owned by Donald Trump Jr. and Eric Trump, is 80% owned by Hut 8 and 20%, opened for trading Wednesday after completing a merger with Gryphon Digital Mining (GRYP). On the same day, the company plans to continue Bitcoin holding by filing for a rise in its market shares by up to $2.1 billion.
The stock rose to $14.65 in our morning before it fell sharply in the morning. Other miners, including Marathon Digital (Mara) and Riot Platforms (Riot), are also trading low on the day.
Similarly, Bitcoin BTC$108,783.53 Although it has slipped 2% over the past 24 hours and moved on to the broader crypto markets, US stock indices like the Nasdaq and the S&P 500 are trading higher.
American Bitcoin, which holds approximately $269 million of approximately $2,443 Bitcoin at its current price of $110,128, pairs it with a financial strategy focused on Bitcoin mining and asset holdings.
Bitcoin mining has become a brutally competitive industry where survival relies on thin razor margins and constant adaptation. Electricity costs eat up more than half of the revenue from each mined coin, and the unforgiving expansion of the network’s computing power increases the difficulty and further reduces profitability.
Hardware manufacturers like Bitmain continue to flood the market with new rigs, putting pressure on demand even as demand slows. As a result, miners need to ensure ultra-stable energy, maintain efficient operation, and become increasingly diverse in areas such as AI computing and data centers.
By stockpiling BTC in the open market, businesses can make profits when prices rise, creating financial cushions that help smooth out the sharp swing of revenue in mining alone.
Bitcoin Miner Marathon Digital (Mara) uses a similar strategy. The company’s shares have fallen 3% over the past 24 hours.