Shares of American Bitcoin, a cryptocurrency mining company linked to President Donald Trump’s sons, fell sharply on Tuesday, plunging more than 50% at one point before recovering slightly, even as bitcoin prices rebounded from a recent sell-off.
Key facts
American Bitcoin’s stock was down about 42% by midday after dropping as much as 51% within the first hour of trading. The company trades under the ticker ABTC.
Eric Trump is a co-founder and serves as the firm’s chief strategy officer, while Donald Trump Jr. is listed as an investor.
American Bitcoin began trading on the Nasdaq in September following a merger with another bitcoin mining company. Shares initially surged but have since fallen roughly 78% from their post-merger peak.
The company reported holding more than 3,000 bitcoin through mining operations and strategic market purchases. In its most recent quarterly results, American Bitcoin posted $64.2 million in revenue and $3.5 million in net income.
Bitcoin prices dropped about 6% on Monday but rebounded on Tuesday, climbing back above $92,000.
Background
Bitcoin reached a record high above $126,000 in October before entering a prolonged decline. Prices fell sharply after the Federal Reserve signaled in December that additional interest rate cuts were not guaranteed, dampening enthusiasm for risk assets such as cryptocurrencies.
Since its October peak, bitcoin has declined more than 30%, hitting a low of $85,468 on Monday before staging a modest recovery.
Valuation
Eric Trump is estimated to own about 7.5% of American Bitcoin. He briefly reached billionaire status in September when the company’s share price surged, but his net worth is now estimated at around $750 million following the stock’s decline.
Related developments
American Bitcoin’s sharp drop comes amid broader weakness across Trump-linked cryptocurrency ventures. World Liberty Financial’s primary token, WLFI, is trading near $0.25, down about 30% from its September high. Shares of ALT5 Sigma, a company that built a treasury position in WLFI tokens, have also tumbled, falling more than 80% over the past six months.
