American Bitcoin Shares Drop Below IPO Price After Sharp Selloff

American Bitcoin (ABTC), the Trump-linked bitcoin miner, fell below its $6.90 IPO price on Thursday, closing its second day of Nasdaq trading with a 15% loss. Shares ended at $6.83 after an early surge to $14.65 quickly reversed in heavy afternoon selling.

The company is 80% owned by Hut 8 and 20% by Donald Trump Jr. and Eric Trump. It began trading Wednesday following a merger with Gryphon Digital Mining (GRYP) and simultaneously filed for an at-the-market equity raise of up to $2.1 billion to expand its bitcoin holdings.

American Bitcoin currently holds about 2,443 BTC valued at roughly $269 million. The firm’s model combines mining operations with a treasury strategy built around accumulating bitcoin, echoing the approach of other miners such as Marathon Digital (MARA), whose stock slipped 3% Thursday. Riot Platforms (RIOT) also traded lower.

Bitcoin itself declined 2% over the past 24 hours to $110,726, moving in step with the broader crypto market. In contrast, U.S. equities advanced, with both the Nasdaq and S&P 500 closing higher.

The selloff highlights the challenges facing miners as competition intensifies. Rising energy costs and relentless growth in network difficulty have squeezed margins, while hardware producers such as Bitmain continue to flood the market with more efficient rigs. To stay competitive, miners are increasingly diversifying into areas like AI computing and data centers, while relying on BTC reserves as a financial buffer against revenue volatility.