Trump-backed crypto stock stumbles despite beating GameStop

Core Insights - American Bitcoin Corp. has become the 22nd largest Bitcoin treasury company, surpassing GameStop in BTC holdings, but the market reaction has been negative with a stock decline of 4.39% [1][4] Company Developments - The firm purchased 416 Bitcoin for $38 million on December 10, increasing its total holdings to 4,783 BTC, which is a narrow lead of 73 BTC over GameStop's 4,710 BTC [2] - Eric Trump, co-founder and chief strategy officer, emphasized that the recent acquisition is part of a rapid expansion strategy, claiming the company is one of the largest and fastest-growing BTC accumulators since its Nasdaq debut [3] Financial Performance - The Satoshis Per Share (SPS) increased by more than 17% in just over a month, indicating successful execution of the firm's scaling plan [3] - Despite the milestone in Bitcoin holdings, ABTC's stock price fell to $1.96, reflecting market skepticism [4] Industry Context - GameStop reported a loss of $9.2 million on its Bitcoin holdings, which were valued at approximately $519.4 million as of November 1, indicating challenges in its digital asset strategy [5] - GameStop's decision to add Bitcoin to its balance sheet in March marked a significant strategic shift for the company [6] Market Volatility - American Bitcoin's shares experienced significant volatility, with a drop of over 50% in early December amid a broader sell-off in Bitcoin, attributed initially to insider selling, although most shareholders are under a lockup period until March 2026 [7]