American Bitcoin (ABTC) Nosedives 39%, Trump Blames 'Profit-Taking'

We recently published 10 Stocks Deep in the Red. American Bitcoin Corp. (NASDAQ:ABTC) is one of the worst performers on Tuesday.

American Bitcoin declined by 38.83 percent on Tuesday to close at $2.19 apiece as investors were said to have taken profits for the first time.

In a social media post, presidential son and American Bitcoin Corp. (NASDAQ:ABTC) co-founder Eric Trump said that the sell-off was due to investors exercising their options to “cash in on their profits for the first time, which is why we will see volatility.”

“I’m holding all my @ABTC shares—I’m 100 percent committed to leading the industry,” Trump added.

American Bitcoin Corp.’s (NASDAQ:ABTC) drop also spilled over to its parent firm, Hut 8 Corp., shedding 13.52 percent on the same day.

In other recent news, American Bitcoin Corp (NASDAQ:ABTC) swung to a net profit of $3.47 million from a $576 million net loss in the same period last year. Revenues soared by 453 percent to $64.22 million from only $11.61 million year-on-year.

“The third quarter validated the thesis behind American Bitcoin,” said American Bitcoin Corp (NASDAQ:ABTC) Chief Strategy Officer and co-founder Eric Trump.

“While others paid spot, we generated Bitcoin below market through scalable, asset-light mining operations. Coupled with disciplined at-market purchases, we added more than 3,000 Bitcoin to our reserve. This dual strategy is how we intend to compound value for our shareholders and solidify our position as a capital-efficient platform for long-term Bitcoin accumulation,” he noted.

While we acknowledge the potential of ABTC 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.