Crypto Firm Linked to Trumps Sees Share Price Plummet

Watch Crypto Firm Linked to Trumps Sees Share Price Plummet - Bloomberg on Dailymotion

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00:00You can see shares of strategy popping a bit, up nearly 7%.

00:03I can't say the same for American Bitcoin Corp.

00:07The ticker there is ABTC.

00:09That, of course, was founded by Eric Trump.

00:11You had a story out today about the share move, and it is staggering.

00:15Shares down about 39% at the moment.

00:19What's going on there?

00:20Yes, so American Bitcoin, they're a Bitcoin miner that spun out of Hut 8 Corp.

00:26And this was co-founded, like you mentioned, by Eric Trump.

00:28Donald Trump Jr. is also a shareholder.

00:31And their main focus is just mining Bitcoin.

00:33But the problem is, like I mentioned, that Bitcoin prices have really declined this year.

00:38So for a company where you're getting most of your revenue from either holding Bitcoin or from selling Bitcoin,

00:45when the prices go down, that's going to have a big impact.

00:48And we've seen that American Bitcoin has underperformed Bitcoin over the past few months.

00:52And that's what's really weighing on shares.

00:54And they're also a stock that has a large retail investment base as well.

00:58Which can cause some more of that volatility too.