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Eric Trump-Backed American Bitcoin Stock Tumbles 3% Amid Expansion Plans and WLFI Token Crashes 21%
ByAinvest
Thursday, Sep 4, 2025 10:57 am ET1min read
American Bitcoin Corp (ABTC) stock fell 3% pre-market, following a 16.52% gain on its Nasdaq debut. The decline was attributed to capital spent to expand Bitcoin mining operations and a domino effect after World Liberty Financial (WLFI) token crashed 21%. Investors selling ABTC stock include Eric and Donald Trump Jr., who will control 98% of the company. Hut 8 stock was up 1% pre-market.
American Bitcoin Corp (ABTC) stock experienced a 3% decline pre-market on September 2, 2025, following a 16.52% gain on its Nasdaq debut. The drop was attributed to significant capital expenditures to expand Bitcoin mining operations and a domino effect from the crash of the World Liberty Financial (WLFI) token, which fell by 21% [1].The company, which merged with Gryphon Digital Mining to list on the Nasdaq, has been actively expanding its mining operations. The merger allowed American Bitcoin to scale its hashrate from 10 EH/s to 24 EH/s, leveraging Hut 8’s infrastructure to reduce costs and scale Bitcoin reserves efficiently [2]. The dual strategy of self-mining and market purchases aims to maximize Bitcoin per share, positioning the company as a leading institutional-grade Bitcoin exposure vehicle.
The pre-market decline in ABTC stock was also influenced by the recent crash of the WLFI token. The token, linked to the Trump family, experienced a significant drop in value, which may have prompted investors to sell their shares in American Bitcoin. Eric Trump and Donald Trump Jr., who control 98% of the company, sold shares as part of the decline, further impacting the stock price [1].
Hut 8 stock, which owns 80% of American Bitcoin, was up 1% pre-market, indicating a positive outlook on the company's future prospects. The listing of American Bitcoin on the Nasdaq has generated considerable market interest, with shares opening at $6.90 and surging as much as 90% during the first hour of trading [2].
American Bitcoin's strategic timing and high-profile backing have drawn attention to the company. The Trump brothers have completed two major crypto-related listings this week, following the debut of the WLFI token on Monday. The company's mission to position the United States as the undisputed leader in the global Bitcoin economy is a significant driver of its growth [2].
References:
[1] https://cointelegraph.com/news/trumps-american-bitcoin-choppy-nasdaq-debut-up-16-percent
[2] https://crypto.news/trump-american-bitcoin-stock-dumps-nasdaq-debut-2025/
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