American Bitcoin (ABTC) Nosedives 39%, Trump Blames ‘Profit-Taking’

Core Insights - American Bitcoin Corp. (NASDAQ:ABTC) experienced a significant decline of 38.83% on Tuesday, closing at $2.19, attributed to investors taking profits for the first time [1][2] - The company's recent financial performance showed a net profit of $3.47 million, a turnaround from a $576 million net loss in the same period last year, with revenues increasing by 453% to $64.22 million [3] Group 1: Stock Performance - American Bitcoin Corp. saw a drastic drop in stock price, leading to a spillover effect on its parent company, Hut 8 Corp., which fell by 13.52% on the same day [3] - Eric Trump, co-founder of American Bitcoin Corp., indicated that the sell-off was a result of investors cashing in on profits, suggesting potential volatility in the stock [2] Group 2: Financial Results - The company reported a remarkable increase in revenues, soaring by 453% year-on-year from $11.61 million to $64.22 million [3] - The net profit of $3.47 million marks a significant recovery compared to the previous year's substantial loss [3] Group 3: Strategic Positioning - Eric Trump emphasized the company's strategy of generating Bitcoin below market rates through scalable, asset-light mining operations, which is aimed at compounding value for shareholders [5] - The company added over 3,000 Bitcoin to its reserves, showcasing its commitment to long-term Bitcoin accumulation [5]