American Bitcoin (ABTC), a cryptocurrency mining company with connections to President Donald Trump’s family, has expanded its Bitcoin reserve by acquiring an additional 139 BTC. This move brings the company’s total BTC holdings to an impressive $415 million. As of the time of publication, ABTC’s share price fluctuated between $4.08 and $4.65, ultimately settling at $4.64, reflecting a 2.20% increase.
The company revealed that its current Bitcoin holdings are the result of strategic at-market purchases and mining activities. ABTC clarified that its reserves also include Bitcoin that is held in custody or pledged under its agreement with BITMAIN for miner purchases. Additionally, ABTC committed to ongoing transparency by issuing periodic updates regarding its Satoshi Per Share (SPS) metric, which provides shareholders with insights into the Bitcoin they indirectly own through their equity stake.
Eric Trump, serving as the co-founder and chief strategy officer of ABTC, announced that the company is pursuing a dual strategy to rapidly expand its Bitcoin holdings. This plan combines scaled BTC mining operations with disciplined at-market acquisitions. He indicated that the company is focused on enhancing its momentum with a current BTC reserve of 4,004 BTC, with an SPS figure now at 432—demonstrating a 3.35% increase over the last 12 days. Notably, ABTC’s reserves have seen significant growth, rising from 3,865 BTC on October 24 to 3,960 BTC by November 3, before the latest increase.
In a recent filing with the U.S. Securities and Exchange Commission (SEC), ABTC disclosed that its Bitcoin purchases are primarily financed through proceeds from its at-the-market (ATM) equity offering program. The company has issued 11,017,341 shares of Class A common stock, raising approximately $90 million before incurring about $2 million in issuance costs between September 3 and September 30. Following this, another 5,523,058 shares were issued, valued at around $33.9 million, with minimal issuance costs of $0.1 million between October 1 and November 3.
The company reported that it mined 563 BTC and purchased 2,451 BTC during the three months ending September 30. Over the nine-month period leading up to the same date, ABTC mined 871 BTC and made the same purchase of 2,451 BTC. As of September 30, the Bitcoin holdings included 2,385 BTC that were pledged or collateralized and an additional 258 BTC bought between October 1 and November 3. By November 3, ABTC’s total Bitcoin in custody included 2,776 BTC that were also collateralized.
In light of the company’s share price fluctuations, analysts at Simply Wall St analyzed ABTC’s valuation amidst a recent pullback. They noted that ABTC’s stock price had dropped by 5% in the past five days, 12% over the week, and a staggering 33% over the month. Concerns have emerged among value-focused investors regarding this persistent decline in the market.
Furthermore, the analysts indicated that despite the recent drop in share price compounding existing challenges for ABTC, there had been previous momentum that seemed encouraging. They questioned whether the recent sell-off indicates that ABTC is trading at a bargain or if the market had already accounted for its future prospects. They also pondered whether the current situation presents a genuine buying opportunity or is simply reflective of fair market conditions.
