American Bitcoin (ABTC) shares fell sharply the day after listing on Nasdaq, dipping below their $6.90 IPO price after a 15% slide that left the stock trading near $6.83.
The company, which is 80% owned by Hut 8 and 20% held by Donald Trump Jr. and Eric Trump, began trading following its merger with Gryphon Digital Mining (GRYP). On the same day as the debut, American Bitcoin filed for an at-the-market (ATM) equity raise of up to $2.1 billion to expand its bitcoin treasury and keep building its holdings.
Shares briefly rallied to an intraday high near $14.65 before reversing course in afternoon trade. Other public miners, including Marathon Digital (MARA) and Riot Platforms (RIOT), also traded lower on the day, tracking weakness in crypto markets while major U.S. stock indices were firmer.
American Bitcoin reported it holds about 2,443 bitcoin (≈ $269 million) at current prices, pairing mining operations with a corporate treasury strategy that favors holding BTC. That approach can smooth revenue swings from mining but also concentrates balance-sheet exposure to bitcoin price volatility.
Industry headwinds remain acute: mining margins are squeezed by rising network difficulty and a constant influx of new hardware, while power costs account for a large share of operating expenses. Many miners now seek ultra-cheap energy or diversify into areas like AI compute and data centers to protect margins.
Why this matters: the ATM filing raises capital and growth options but introduces dilution risk for current holders. Short-term share swings after an IPO or merger are common — investors should weigh operational risks, energy exposure and bitcoin price volatility before making decisions.
Source: CoinDesk. Read the original coverage for full details.