American Bitcoin's Valuation Amidst a Bitcoin Treasury Expansion and Profit Turnaround

American Bitcoin (ABTC) has acquired over 1,000 Bitcoins, increasing its reserve to 5,427 BTC and contributing to a sharp rally in the stock. The December Bitcoin purchase and recent profit turnaround have come after a tough stretch for shareholders. The stock is trading at $1.91 with a P/E of 10.6x, which is inexpensive compared to peers and the wider US Software industry. Our DCF model suggests the stock is trading at a 35.9% discount to our fair value estimate of $2.98.