Trump-Backed American Bitcoin Stock Tanks 9% Despite New Bitcoin Buy
Highlights
- American Bitcoin stock plunged around 9% as the firm reported weak quarterly earnings.
- Ranked 15th among the top public Bitcoin treasury firms, ABTC holds 7,500 BTC in its strategic reserves.
- Co-founder Eric Trump praised the firm’s mining operations and its improved position.
The Trump family-backed American Bitcoin stock (ABTC) dropped over 9% as the company released its earnings report. The firm reported a huge net loss of approximately $82 million for the quarter. Investors didn’t react positively, even after the firm boosted its Bitcoin holdings by roughly 1,600 BTC during the same quarter.
American Bitcoin Stock Plunges 9% Despite Boosting BTC Holdings
American Bitcoin Corp. (ABTC), the famous Trump Family-backed Bitcoin Treasury, has boosted its holdings to 7,500 BTC. The company’s co-founder and Chief Strategy Officer, Eric Trump, shared this news on X as a proud achievement.
He praised the firm for climbing another spot and claiming the 15th rank among the largest public Bitcoin treasury firms in the world. For context, Bitcoin Treasuries data shows that the Trump-backed Bitcoin treasury firm added 200 BTC to its overall holdings. This massive accumulation shows a threefold increase in the company’s strategic BTC reserve since its Nasdaq debut.
Even though the firm boosted its BTC holdings, its stock plunged nearly 9% following the latest earnings report. That reflected weak investor sentiment.
The American Bitcoin stock price declined despite the company adding approximately 1,600 BTC in a single quarter. Moreover, the market reaction suggested that investors focused more on financial performance than the company’s growing Bitcoin reserves.
At closing, the ABTC stock was down 7.21% to $1.03 on Monday, May 18. Further, the negative sentiment relieved a bit as the American Bitcoin share price gained 1.93% in the after hours trading.
Trump Praised The Company’s Mining Operations
While praising ABTC’s improved position as a public Bitcoin treasury, Eric Trump also bragged about the firm’s Bitcoin mining efficiency. He stated that the firm now operates nearly 90,000 Bitcoin mining machines.
He also reported that the company’s Bitcoin-backed value per share surpassed 700 satoshis. That essentially more than doubled since American Bitcoin Corp’s Nasdaq debut.
He even wrote that the company achieved those milestones within just eight months of operations. It highlighted the firm’s aggressive expansion strategy in the BTC mining sector.
Eric Trump claimed that no other company is moving faster than American Bitcoin. Following its latest achievement, the firm is targeting the 14th position in the public treasury rankings, currently held by Block, Inc.
On the other hand, Trump-linked World Liberty Financial is facing the heat owing to massive WLFI sales.
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