Hut 8 (HUT) Tumbles 7.4% as Subsidiary Fall Suggests Optimism Now Over

We recently published 10 Major Stocks Collapse. Hut 8 Corp. (NASDAQ:HUT) is one of the worst performers on Thursday.

Hut 8 snapped an eight-day winning streak on Thursday, shedding 7.44 percent to finish at $25.61 apiece, dragged by the drop in share prices of its subsidiary, American Bitcoin, during its debut on the stock market.

In its first day as a listed firm on Wednesday, American Bitcoin Corp. (NASDAQ:ABTC) fell by 12.8 percent toward the close after opening at $9.22 and jumping to a high of $14.52. The drop continued over to Thursday, shedding another 20.27 percent to end at $6.41 apiece, suggesting that investors may have already priced in the news.

Hut 8 Corp. (NASDAQ:HUT) majority owns American Bitcoin Corp. (NASDAQ:ABTC), while the remaining stake is owned by Eric and Donald Trump Jr., sons of the US president.

Hut 8 Corp. (NASDAQ:HUT) and the Trump brothers established American Bitcoin Corp. (NASDAQ:ABTC) to serve as a Bitcoin treasury company. On the other hand, the former is a Bitcoin miner providing mining backbone while also being an equity provider to the newly listed firm.

Further dragging investor sentiment during the day was the drop in Bitcoin prices. As of writing, the price of the cryptocurrency was down by 1.23 percent at $110,339 apiece.

While we acknowledge the potential of HUT  as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.