Trump-Linked American Bitcoin Shares Fall 15% Below IPO

Shares of American Bitcoin (ABTC), a bitcoin mining company 80% owned by Hut 8 and 20% by Donald Trump Jr. and Eric Trump, fell approximately 15% below its IPO price shortly after debuting on the Nasdaq. The stock initially surged to a high near $14.65 but declined sharply to $6.83 amid a broader crypto market downturn. ABTC filed for an at-the-market equity raise of up to $2.1 billion to expand its bitcoin holdings and recently nearly doubled its mining capacity to 24 exahash-per-second. The company employs a strategy combining bitcoin mining with stockpiling bitcoin as a treasury asset to buffer revenue volatility. The Trump family’s involvement in ABTC has attracted criticism from Democratic lawmakers and ethics watchdogs, which Eric Trump dismissed as "insane." The bitcoin mining sector remains highly competitive with tight margins, as companies must optimize energy costs and diversify operations to stay profitable.