American Bitcoin (ABTC), the treasury and mining firm backed by Eric Trump and Donald Trump Jr., announced a significant purchase this Monday. The firm added 1,414 Bitcoin to its reserves. This operation is currently valued at $163 million. The American Bitcoin mining strategy is driving its aggressive accumulation.
With this latest acquisition, American Bitcoin’s total holdings rise to 3,865 BTC. The value of this treasury now exceeds $446 million. Bitcoin’s price was above $115,200 during the announcement. The company, a subsidiary of Hut 8 Corp., explained how it obtained the assets. The new Bitcoin comes from strategic purchases and its own mining operations. This duality is key to its business model.
ABTC maintains its aggressive treasury approach. It does so despite recent market volatility. Bitcoin is trading below its all-time high of $125,000 reached in August. Asher Genoot, Executive Chairman, highlighted the advantage of mining. “By producing Bitcoin directly, we can reduce our average cost per Bitcoin,” Genoot stated. This, he claims, offers an advantage over vehicles that only buy on the open market.
Will this strategy differentiate ABTC from its competitors?
The news generated an immediate positive reaction in the stock market. ABTC shares rose more than 11% following the announcement. They surpassed $6.20 per share, a level not seen in two weeks. This move contrasts with the recent general crypto market downturn. Furthermore, the company will introduce a new metric for investors. They will periodically report “Satoshis per share” (SPS), directly linking the stock’s value to BTC reserves.
American Bitcoin is consolidating its position in a growing sector. More than 200 public companies have built Bitcoin treasuries, according to data from bitcointreasuries.net. They follow the model of Strategy (formerly MicroStrategy), which holds over $73 billion in BTC. The American Bitcoin mining strategy seeks to optimize costs as the sector matures. Investors will be watching whether this hybrid model offers better long-term sustainability.
