American Bitcoin Corp (ABTC) (NASDAQ: ABTC) has taken an absolute beating on the stock front, shedding more than 85% from the peak it reached shortly after splitting off from Hut 8 (NASDAQ: HUT). Shares that were flying high above $14 are now barely holding above $1.80 here in mid-December 2025. All that initial buzz around the company’s connections to Donald Trump and his family couldn’t shield it from the harsh combo of a sinking BTC price and a mining industry that’s getting hammered left and right.
The spinoff happened back in late September, and at first, the timing seemed spot-on. Trump was out there promoting pro-crypto talk during the campaign, pushing ideas like U.S.-produced BTC and a national reserve. ABTC ended up with a solid slice of Hut 8’s Texas operations—thousands of Antminer machines, decent power access, the works. Retail traders jumped in hard. The narrative was straightforward: this was the “Trump-aligned miner,” set up to capitalize on incoming favorable rules and possibly even receive some preferential treatment.
It played out nicely for a bit. The stock shot up immediately, riding a wave of excitement from small investors and media stories that heavily leaned into the political hook. Folks treated ABTC like a leveraged play on a crypto-boosting administration. Capital was raised fast, and the team talked boldly about ramping up the hashrate and never selling the BTC they mined.
Then the overall market flipped. BTC had surged beyond $126,000 in October, but concerns about persistent interest rates and cash flowing into AI plays triggered a sharp pullback. By early December, it dipped below $90,000. Miners always feel those drops amplified—their income comes straight from BTC price plus network fees, which vanish when trading volume cools off.
ABTC caught it from every angle. They’ve got a treasury stuffed with self-mined BTC they’re holding onto, so each big price dip erases serious value on paper. On top of that, hashprice—the daily revenue per unit of hashrate—tumbled to roughly $35 per PH/s. That’s a steep fall from summertime highs, and for many setups, it’s hovering right around or below the actual cost of staying online.
The knockout blow arrived when a massive tranche of locked shares unlocked in early December. Millions hit the open market exactly when sentiment was at its lowest. Trading volume spiked through the roof, but it was almost entirely sellers unloading. Early holders from the spinoff or private rounds finally received liquidity and took it, while short sellers piled on, convinced that the downside wasn’t over.
What once looked like a golden Trump connection is starting to feel more like a mixed bag. Sure, there are advisory links and some public shoutouts, but real policy shifts don’t happen overnight, and nothing targeted at miners has materialized yet. In the meantime, certain states keep eyeing curbs on power-hungry operations, and the overt political branding paints a target on ABTC’s back for anyone skeptical about blending crypto with big-name politics.
The rest of the mining pack isn’t exactly thriving, but companies with side businesses—like leasing data center space for AI training—are weathering the storm a bit better. Straight-up BTC miners like ABTC have nowhere to pivot when prices tank.
Leadership insists the strategy is intact. They highlight substantial day-to-day numbers, favorable Texas power contracts, and a firm commitment to stacking BTC long-term. The cash runway is getting attention, though—if BTC doesn’t turn around soon, they might have to slow down growth or start trimming expenses.
Currently, the share price suggests uncertainty. That premium everyone paid for the glamorous story has evaporated completely, leaving behind a plain old miner grappling with the same brutal conditions as its peers—perhaps carrying a little extra weight from all the overhyped expectations.
Early buyers who chased the narrative are nursing heavy losses. A few are holding tight, figuring a solid BTC recovery or fresh policy wins could spark a massive rebound. Plenty of others have already bailed, deciding the political tie-in was mostly hype over substance.
When you strip it down, mining still boils down to cheap electricity, efficient hardware, and a strong BTC price. Relationships and branding might help with fundraising and deal-making, but they don’t pay the electric bill when profitability vanishes.
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Source: https://coingeek.com/abtc-shares-plunge-over-85-percent-since-spinoff/
