In brief
- The Trump family-backed Bitcoin miner American Bitcoin has posted its quarterly results showing a revenue increase.
- American Bitcoin’s Nasdaq-listed stock dropped, then popped on the news.
- Bitcoin is down along with other crypto-based stocks.
Publicly traded Bitcoin treasury and mining company American Bitcoin’s stock is on the rise Friday—despite other major miners taking a hit.
The Nasdaq-listed firm, which trades under the ABTC ticker and is fronted by President Donald Trump’s sons, dropped Friday morning New York time to as low as $4.50 before shooting upwards to its most recent level of $4.83. That’s a roughly 2% rise over the past day, according to Yahoo Finance data. Over the last five days, ABTC is up about 4%.
American Bitcoin on Friday posted third-quarter profits and said revenue more than doubled from the year-earlier period in its first financial results since it went public in September.
“It’s an incredibly exciting asset class, and I believe in Bitcoin with every aspect of my heart and soul,” Eric Trump said in a Friday interview with Yahoo Finance. Eric Trump is the firm’s co-founder and chief strategy officer, while Donald Trump Jr. is a stockholder in the company.
The firm aims to be the best and “most efficient” Bitcoin miner in the U.S., according to Eric Trump.
Bitcoin mining stocks are experiencing increased volatility as the price of the leading digital coin has taken a hit. Bitcoin dropped Friday to below $95,000 per coin—hitting a six-month low—and was recently trading for $95,154, CoinGecko data shows, a 3.5% dip on the day.
Investors have typically bought mining stocks to get exposure to the crypto space but now, with more mining operations pivoting to the high-powered computing space, they are becoming a more attractive option for a broader swath of tech investors.
American Bitcoin is not one of those miners—yet—but it has become a Bitcoin treasury. The firm now holds over 4,000 Bitcoin, valued around $381 million; investors can buy shares of its stock to get exposure to the asset.
American Bitcoin formed when the Trump brothers merged their own business entity earlier this year with Hut 8, a Canada-headquartered miner. The joint venture then went on to combine with Gryphon Digital Mining via a stock-for-stock merger. Gryphon was already publicly traded.
The firm is one of more than 200 publicly traded companies—many outside the crypto industry—following the approach of Nasdaq-listed Strategy, which has accumulated the world’s largest crypto treasury valued at more than $62 billion.
Strategy—formerly MicroStrategy—pivoted from software development to buying Bitcoin in August 2020 to generate better returns for its shareholders as its stock price floundered.
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Source: https://decrypt.co/348746/trump-bros-american-bitcoin-stock-rises-q3-revenue-spike
