Shares of American Bitcoin Corporation, the Bitcoin mining company backed by Donald Trump Jr. and Eric Trump (sons of US President Donald Trump), have fallen sharply on the stock market, dropping more than 50% in the last month.
Due to this decline in stock prices, This occurred amidst a general decline in the Bitcoin (BTC) market.although the stock price has shown a slight recovery recently.
As seen in the chart below, American Bitcoin Corp’s stock price plummeted from $4.88 in early November to a low of $1.72, before recovering to $2.37 per unit today.
The crash coincided with a major correction in the price of Bitcoin (BTC), which has fallen 32% from its all-time high in early October. But now, the digital currency is showing signs of stabilizing, revaluing by 6% to $92,000 per unit.
Despite the current stock price weakness, the company reported a quarterly profit. According to its 10th quarterly report filed with the U.S. Securities and Exchange Commission (SEC) in mid-November, American Bitcoin Corp. Third quarter revenue increased to $64.2 millionThis was a significant increase compared to $11.6 million in the same period last year. The company also reported net income of $3.5 million in the same period.
American Bitcoin Corp went public in September after completing a reverse merger with Gryphon Digital Mining, a miner already listed on Nasdaq. In October, the company demonstrated its commitment to infrastructure expansion by investing $314 million to acquire 16,299 digital asset mining equipment from Chinese manufacturer Bitmain, CriptoNoticias reported.
Although the current decline in the stock market value of mining companies is serious, This is interpreted as reflecting the volatility of the digital asset market, which affects the entire ecosystem. This is not necessarily due to changes in the company’s management base.
(Tag Translation)Bitcoin (BTC)
