American Bitcoin Surges 85% on Nasdaq Debut Before Closing Up 16%

American Bitcoin Corp. began trading on Nasdaq Wednesday under ticker ABTC, with shares surging as much as 85% to $14 before closing at $8.04, up 16.5% on the day. The volatile debut prompted five trading halts as the Trump-backed Bitcoin mining company achieved a market capitalization exceeding $5 billion.

The company, co-founded by Eric Trump and Donald Trump Jr., went public through an all-stock merger with Gryphon Digital Mining that was disclosed in May. Trading was first halted at 3:09 UTC and resumed multiple times throughout the session as volatility triggered automatic circuit breakers.

American Bitcoin operates as a majority-owned subsidiary of Hut 8 Corp., combining Bitcoin mining operations with opportunistic market purchases in what executives describe as a "dual accumulation strategy" focused on maximizing Bitcoin per share. Under the deal structure, Hut 8 contributed most of its Bitcoin mining hardware in exchange for 80% ownership of American Bitcoin, while retaining focus on data center operations including AI infrastructure hosting.

American Bitcoin raised $220 million through private placement as part of the merger transaction, providing capital for near-term expansion plans. The company's dual strategy of mining and opportunistic Bitcoin purchases aims to capitalize on market volatility and structural mining advantages.

Business Model

Executive Chairman Asher Genoot, who also serves as CEO of parent company Hut 8, told Bloomberg TV the strategy leverages controlled energy costs and efficient capital access. "American Bitcoin's focus is on Bitcoin accumulation and increasing Bitcoin per share," Genoot said.

The company utilizes Hut 8's existing infrastructure platform and next-generation ASIC technology to mine Bitcoin without building proprietary data centers. This shared services approach is designed to deliver operational efficiency while allowing greater capital allocation toward scaling mining capacity and Bitcoin reserves.

Eric Trump positioned the company as a Bitcoin proxy for institutional investors. "Today, American Bitcoin becomes a premier public vehicle for investors seeking scalable, singular exposure to the defining asset class of our time," he said in a statement marking the Nasdaq debut.

Market Reception

The trading frenzy reflects growing institutional appetite for Bitcoin mining stocks as the cryptocurrency approaches six-figure valuations. Bitcoin currently trades around $111,000, near all-time highs reached earlier this year.

American Bitcoin's $5 billion valuation places it among the largest publicly traded Bitcoin mining companies, though the market cap fluctuated significantly during Wednesday's volatile session. Shares traded as low as $7.56 before recovering to close at $8.04, and is changing hands at $8.45 in after-hours trading.

The company announced plans to raise $2.1 billion through additional share offerings to acquire more Bitcoin, signaling aggressive expansion plans following the public debut.

Trump Crypto Empire

American Bitcoin represents one component of the Trump family's expanding cryptocurrency ventures. The family recently launched World Liberty Financial, whose associated token began trading Monday and reportedly added $5 billion to the Trumps' paper wealth.

Trump Media & Technology Group announced a $2 billion Bitcoin reserve strategy, while Crypto.com disclosed a $6.4 billion treasury deal with the media company. ALT5 Sigma, another public company connected to the family, plans to establish a $1.5 billion treasury for World Liberty Financial tokens.

The proliferation of Trump-linked crypto ventures has drawn criticism from ethics watchdogs and Democratic politicians who argue the businesses create potential conflicts of interest for the sitting president. Eric Trump has previously disputed such allegations and maintained he doesn't discuss business ventures with his father.