American Bitcoin Corp. (NASDAQ: ABTC), a Bitcoin (BTC) mining firm co-founded by Eric Trump, experienced a significant drop in its share price, crashing more than 50% in less than 30 minutes on December 2. This sharp decline led to multiple trading halts for the company's stock.
At the time of reporting, ABTC was trading down by nearly 40%, with its shares valued at $2.2050.
In contrast, Bitcoin itself was showing signs of recovery, trading at $91,653.98 after an increase of 7.8% over the preceding 24 hours.
Market Context and Company Performance
The dramatic fall in American Bitcoin's stock price occurs against the backdrop of Bitcoin's broader market performance. Bitcoin has seen a 30% slide since early October, a trend attributed to a cooling risk appetite among investors amid global macroeconomic uncertainty.
Once considered a promising spinout from Hut 8 Corp., American Bitcoin's stock has now depreciated by approximately 60% over the past six months.
Despite the recent stock performance, the company reported positive financial results for the third quarter. American Bitcoin recorded a net income of $3.5 million and generated revenue of $64.2 million for the quarter. This revenue figure represents more than double the amount reported in the previous quarter.