Trump Bros’ American Bitcoin Stock Rises After Q3 Revenue S…

American Bitcoin, a Bitcoin mining and treasury firm backed by the Trump family, saw its Nasdaq-listed stock rise Friday despite broader declines in the cryptocurrency market. The firm, trading under the ticker ABTC, dipped to $4.50 before climbing to $4.83, a roughly 2% increase over the past day and a 4% rise over the last five days, according to Yahoo Finance data.

The company reported third-quarter profits and more than doubled revenue compared to the year-earlier period in its first financial results since going public in September. Eric Trump, co-founder and chief strategy officer, stated, “It’s an incredibly exciting asset class, and I believe in Bitcoin with every aspect of my heart and soul.” Donald Trump Jr. is also a stockholder in the company.

American Bitcoin aims to become the “most efficient” Bitcoin miner in the U.S. The company’s rise comes amidst volatility for Bitcoin mining stocks, influenced by Bitcoin’s price fluctuations.

Bitcoin currently trades at $95,154, marking a six-month low and a 3.5% daily decrease, CoinGecko data shows. Mining stocks have traditionally offered investors exposure to the cryptocurrency space, but are increasingly attracting wider tech investment due to operational shifts.

American Bitcoin has adopted a different approach, functioning as a Bitcoin treasury, holding over 4,000 Bitcoin valued at approximately $381 million. Investors can now gain exposure to Bitcoin through shares of ABTC stock.

The company formed through a merger of the Trump brothers’ business entity and Hut 8, followed by a stock-for-stock merger with Gryphon Digital Mining, which was already publicly traded.

American Bitcoin is one of over 200 publicly traded companies, emulating the strategy initially pioneered by Nasdaq-listed Strategy (formerly MicroStrategy), which accumulated a crypto treasury valued at more than $62 billion.

Strategy’s shift to Bitcoin in August 2020 was intended to generate better returns for shareholders amid a stagnant stock price.

Source: decrypt.co

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.