A cryptocurrency mining company associated with the Trump family experienced a dramatic sell-off on Tuesday, with its stock price plummeting nearly 40% in a single trading session. The sharp decline reflects a broader downturn currently gripping the digital asset sector.
The company, American Bitcoin Corp., saw its share price fall from $2.39 to $1.90, erasing approximately $1 billion in market value. Trading activity surged to nearly forty times its daily average, triggering multiple automatic trading halts due to extreme volatility. The stock has now fallen roughly 78% from its peak value in early September.
This steep drop coincides with a significant correction across cryptocurrency markets. The price of Bitcoin, the leading digital currency, has fallen over 30% from a recent high in early October. Analysts note that the global crypto market has lost about $1 trillion in value during this period, a phase some industry observers are labeling a renewed “crypto winter.”
A representative for the company attributed the stock’s volatility to early investors choosing to liquidate portions of their holdings for the first time. In a public statement, he expressed continued confidence in the firm’s long-term prospects, stating he was retaining his personal stake and remained “100% committed to leading the industry.” He previously claimed the Texas-based operation handles 2% of the global Bitcoin network’s mining activity.
The mining venture is part of a larger portfolio of digital asset businesses launched by the Trump family since 2022. Other affiliated crypto projects have also seen substantial declines in value recently.
Despite the market downturn, the principal behind the mining firm struck an optimistic tone in recent remarks, suggesting the lower prices present a strategic buying opportunity. “People who buy dips and embrace volatility will be the ultimate winners,” he stated, adding he had “never been more bullish” on cryptocurrency’s future.
The company, formed earlier this year, recently reported a net profit for its third quarter. The broader Trump business empire has been actively involved in the digital asset space, with ventures including a namesake cryptocurrency and a financial technology firm. The family’s overall net worth, significantly bolstered by these crypto investments, is estimated to have decreased by $1 billion since September due to the market decline.
The current administration has taken steps to foster the digital asset industry, issuing an executive order to support its growth and establish a regulatory framework. This marks a notable shift from earlier skepticism expressed about the asset class.