New York, Sept. 6, 2025 — American Bitcoin (NASDAQ: ABTC), the miner partially owned by Donald Trump Jr. and Eric Trump, has suffered a bruising debut on Wall Street. Just one day after its IPO, the stock plunged 15% to $6.83 — slipping under its $6.90 listing price and casting doubts on whether hype can outpace the harsh realities of bitcoin mining.

Key Points at a Glance

ABTC tumbles below IPO: Shares fell 15% to $6.83, undercutting its $6.90 offering price.

Volatile debut: The stock spiked as high as $14.65 in early trading before collapsing in the afternoon.

Trump family stake: 20% owned by Donald Trump Jr. and Eric Trump, with Canadian mining giant Hut 8 holding 80%.

War chest strategy: ABTC controls 2,443 BTC worth ~$269M and filed for a massive $2.1B equity raise to fund growth.

Industry headwinds: Rising energy costs, fierce competition, and oversupply of mining rigs are crushing profitability across the sector.

A Rollercoaster Debut

After its Nasdaq debut on Wednesday, ABTC briefly soared to $14.65 in morning hours — more than double its IPO price — before sellers took control, slashing the stock nearly in half by the closing bell. By Thursday, the selloff deepened, pushing shares below the symbolic $6.90 line.

The volatility underscores investor anxiety over crypto miners, which face razor-thin margins in a sector where power bills can eat up 50% or more of revenue.

A Hybrid Bet on Bitcoin

ABTC isn’t just a miner. It’s pursuing a hybrid model, combining traditional mining operations with a long-term strategy of hoarding bitcoin as a treasury asset. That stockpile — worth nearly $270 million — gives the firm exposure to BTC’s upside but also ties its fate closely to the coin’s brutal swings.

Marathon Digital (MARA) and Riot Platforms (RIOT), two rivals following similar strategies, also traded lower on Thursday, showing the weakness isn’t isolated. Bitcoin itself slipped about 2% to $110,790 over the past 24 hours, moving opposite to U.S. stock indexes like the Nasdaq and S&P 500, which both rose.

Expansion Amid Pressure

Despite the rough start, ABTC’s ambitions are anything but small. The company has filed for an at-the-market equity raise of up to $2.1 billion — an aggressive move signalling that it plans to keep buying bitcoin and expanding its operations even as the sector comes under mounting stress.

The Bigger Picture

The plunge in ABTC stock is a reality check: crypto miners aren’t just chasing digital gold — they’re fighting a war of efficiency. With new rigs flooding the market from manufacturers like Bitmain, competition is relentless. To survive, miners must secure dirt-cheap power, streamline operations, and increasingly diversify into AI computing or data centers.

For ABTC, the Trump name brings political heat and media spotlight — but survival will come down to execution in an unforgiving business. Investors have already cast their first verdict: hype can only carry a stock so far.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.