Bitcoin's American debut on Nasdaq results in a staggering 85% surge, followed by a closing increase of 16%
American Bitcoin, a new player in the cryptocurrency market, made a significant impact on its first day of trading on Nasdaq. The company, which was formed through a merger with Gryphon Digital Mining, began trading under the ticker ABTC and quickly achieved a market capitalization exceeding $5 billion.
The merger, announced in May, involved a corporate reorganization and a name change, as well as a new multi-class stock structure. As a result of the merger, American Bitcoin operates as a majority-owned subsidiary of Hut 8 Corp.
American Bitcoin's strategy is focused on Bitcoin accumulation and increasing Bitcoin per share. The company utilizes Hut 8's existing infrastructure platform and next-generation ASIC technology to mine Bitcoin without building proprietary data centers. This approach allows American Bitcoin to leverage Hut 8's established capabilities in the cryptocurrency mining industry.
Shares of American Bitcoin surged as much as 85% to $14 on its first day of trading, closing at $8.04, up 16.5%. The trading price has since risen to $8.45 in after-hours trading.
In addition to its initial public offering, American Bitcoin plans to raise an additional $2.1 billion through share offerings to acquire more Bitcoin. This aggressive strategy reflects the company's commitment to growing its Bitcoin holdings and strengthening its position in the market.
The proliferation of Trump-linked crypto ventures, including American Bitcoin and Trump Media & Technology Group's $2 billion Bitcoin reserve strategy, has drawn criticism from ethics watchdogs and Democratic politicians. Eric Trump, the executive chairman of American Bitcoin, has previously disputed allegations of potential conflicts of interest regarding the family's crypto ventures.
It's worth noting that World Liberty Financial, a recent launch by the Trump family, added $5 billion to the Trumps' paper wealth. ALT5 Sigma plans to establish a $1.5 billion treasury for World Liberty Financial tokens. Crypto.com has also disclosed a $6.4 billion treasury deal with Trump Media & Technology Group.
The trading of American Bitcoin was halted five times due to volatility on its first day of trading. Despite this, the company's strong performance and ambitious plans for growth have caught the attention of investors and industry observers alike. Only time will tell if American Bitcoin can maintain its momentum and solidify its place in the cryptocurrency market.
