Shares of American Bitcoin Corp (ABTC) faced a drastic decline, falling over 50% in early trading on Tuesday as market pressures affected crypto-related stocks.
ABTC, which went public on Nasdaq earlier in September after a reverse merger with Gryphon Digital Mining, saw its stock tumble to a low of $1.75—a 51% decrease for the day, per Yahoo Finance data.
ABTC stock faced a steep decline on Tuesday. Source: Yahoo Finance
Currently, the stock is about 78% below its peak of $9.31 from September 9, highlighting a significant unwinding across the digital asset landscape.
There was no identifiable driver for the sell-off; however, crypto stocks have been experiencing heightened fluctuations amid a market retreat, leading to profit-taking in tech shares.
The performance of American Bitcoin is closely linked to Bitcoin (BTC), which has recently seen one of its most notable dips, dropping from around $126,000 to below $80,000 in November.
The Impact of Crypto Market Decline
The ongoing downturn in the crypto market has led to a comprehensive reassessment of stocks connected to cryptocurrencies, especially among miners and firms that hold substantial Bitcoin assets.
Despite these challenges, American Bitcoin reported a turnaround to profitability in the third quarter, achieving $3.47 million in net income and $64.2 million in revenue. They also acquired 3,000 BTC in the same quarter, increasing their total reserves to over 4,000 BTC.
American Bitcoin is not alone in facing selling pressure due to Bitcoin’s descent. Shares of Strategy (MSTR), managed by Michael Saylor, plummeted by more than 50%, assigning its market value below that of its Bitcoin holdings.
Eric Trump remained undeterred by the fluctuations, expressing that they represent an opportunity for investors looking to accumulate at better prices.
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