TLDR
- American Bitcoin (ABTC) stock crashed 43% to $2.05 on Tuesday with trading volume 10 times higher than normal, dropping the company’s market cap from over $7 billion in September to $1.85 billion.
- The miner holds 3,418 Bitcoin worth approximately $310 million but trades at a market cap of $1.85 billion after the selloff.
- Trump Media & Technology Group hit record lows with Donald Trump’s stake losing around $800 million since September as Bitcoin dropped 30% from its October high of $126,272.76.
- World Liberty Financial’s WLFI token fell over 30% from September while ALT5 Sigma, which holds WLFI, plunged over 80% from its peak.
- Trump Media spent roughly $2 billion on 11,500 Bitcoins at around $115,000 each and holds $147 million in CRO tokens, both positions now showing losses.
American Bitcoin stock suffered a brutal Tuesday as shares plunged 43% to $2.05, wiping out billions in market value. The crypto miner, co-founded by Eric Trump and Donald Trump Jr., saw 48 million shares trade hands in the first two hours of trading alone. That’s 10 times the daily average.
The company went public in September with a straightforward strategy: mine Bitcoin and hold it. Executive Chairman Asher Genoot pitched investors on the idea that American Bitcoin could accumulate tokens at a discount compared to buying on the open market.
For a while, it worked. The stock soared to a market cap exceeding $7 billion in mid-September. At that point, American Bitcoin held just $285 million worth of crypto. By Tuesday, the company’s market cap had crashed to $1.85 billion.
The miner reported holding 3,418 Bitcoin at the end of September. Those tokens are now worth around $310 million. The gap between market cap and crypto holdings has narrowed, but American Bitcoin is still trading at a premium to its reserves.
What triggered the selloff remains unclear. The collapse came on a day when most crypto prices actually moved higher. Bitcoin, Ethereum, and Ripple all posted gains Tuesday.
Bitcoin itself has dropped 30% from its October peak of $126,272.76. That decline has crushed the valuations of so-called Bitcoin treasury companies. Strategy, the most prominent player in this space, has also seen its premium to crypto holdings shrink in recent weeks.
Trump Family Crypto Holdings Take Beating
The Trump family’s crypto exposure extends far beyond American Bitcoin. Donald Trump Jr. holds shares in the miner and has watched those positions bleed value since September.
World Liberty Financial, a Trump-backed DeFi platform, launched its WLFI token earlier this year. That token has fallen more than 30% from its September levels. ALT5 Sigma, which holds WLFI, dropped over 80% from its high.
Eric Trump brushed off the losses in comments to Bloomberg News. “What a great buying opportunity,” he said. “People who buy dips and embrace volatility will be the ultimate winners.”
Trump Media Bleeds Value on Bitcoin Bets
Trump Media & Technology Group, the company behind Truth Social, hit a record low on Wednesday. The timing aligns with the company’s growing crypto exposure.
Donald Trump holds the largest stake in Trump Media through a trust overseen by Donald Jr. That stake has lost approximately $800 million in value since September.
The company spent roughly $2 billion buying Bitcoin and related assets, according to a July filing. Trump Media purchased 11,500 Bitcoins at around $115,000 each. With Bitcoin prices down, those holdings now sit on a 25% paper loss.
Trump Media also bought CRO tokens from Crypto.com. The position was worth about $147 million at the end of September. CRO has since dropped roughly 50%.
Crypto.com is now working with Trump Media to build Truth Predict, a platform for betting on sports and political events. The project remains in development.
Nick Forster, founder of crypto options platform Derive.xyz, wrote in a Tuesday note that he expects more downside. “I don’t believe the bottom is in,” he said. “The market expects outsized swings as we head into the new year.”
American Bitcoin reported net income of $3.5 million and $64.2 million in revenue for the third quarter in November. The company has now lost over 78% of its value since its September peak.
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