A cryptocurrency miner co-founded by Eric Trump received its first analyst coverage on Wednesday.
Roth Capital Partners analyst Darren Aftahi initiated coverage of American Bitcoin Corp. (NASDAQ: ABTC) with a "Buy" rating and a $4 price target.
The call represents a potential 106% gain from Wednesday's closing price of $1.94.
The bullish stance comes despite American Bitcoin's stock tumbling more than 60% over the past month.
The analyst rating emerged less than two weeks after the company's lock-up period expired.
Roth Capital serves as underwriter for Colombier Acquisition Corp. III, a special-purpose acquisition company listing Donald Trump Jr. as a director.
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What Happened
American Bitcoin's shares plunged 38% on Dec. 2 when early investors gained the ability to sell their holdings.
The stock crashed from $3.58 to below $1.50 in less than 30 minutes.
Eric Trump, who serves as co-founder and chief strategy officer, posted on social media that he remains "100% committed" and won't sell his stake.
Hut 8 Corp. (NASDAQ: HUT) owns a majority stake in American Bitcoin.
The company went public through a merger with Gryphon Digital Mining Inc. in early September.
American Bitcoin operates as both a Bitcoin miner and accumulation platform.
The company holds 4,783 Bitcoin, valued at approximately $432 million at current cryptocurrency prices.
Why It Matters
The analyst coverage arrives as American Bitcoin faces mounting pressure from Bitcoin's broader market decline.
Bitcoin has fallen more than 25% from its October peak above $126,000.
Multiple lock-up periods remain scheduled for 2026, which could trigger additional selling waves.
American Bitcoin completed a $220 million equity raise in September to fund Bitcoin acquisitions and mining equipment purchases.
The company recently added 416 Bitcoin to its treasury, pushing total holdings past GameStop Corp.
Price Action: Bitcoin traded at $90,283 at publication time, down 2.5% in 24 hours.
American Bitcoin shares closed at $1.94 on Wednesday, down 5.4% for the session.
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