Roth Capital’s analyst, Darren Aftahi, believes American Bitcoin has an advantage over other crypto companies.
Eric Trump-backed American Bitcoin has added to its BTC reserve, bringing its total BTC holdings to 5,098 BTC and yield to 96.5% since its debut in September. The company has purchased approximately 1,138 BTC since November 1 through December 14, representing a 172.25% increase compared to its BTC purchases in October.
The miner-turned-BTC treasury has been on a continuous BTC buying spree, acquiring an additional 416 BTC worth roughly $38.3 million as of December 2. It had bought 363 BTC the previous week, cementing it within the top 20 publicly traded Bitcoin treasuries. The company previously flipped Anthony Pompliano’s ProCap Financial to settle at the 21st position before jumping to the top 20, according to Bitcoin Treasuries.
American Bitcoin’s Satoshi per share also grew more than 24% MoM to 533. The metric shows traders how much BTC is attributable to each outstanding share of common stock. According to the firm, it offers them a clearer picture of indirect BTC ownership through equity.
American Bitcoin’s co-founder and CSO (Chief Strategy Officer) Eric Trump stated on November 15 that the company had experienced tremendous growth despite declining stock prices.
He claimed that the firm has surged past dozens of companies in just over three months since its initial public offering (IPO) on the Nasdaq. The company previously stated that it will continue to provide updates on its BTC holdings, SPS metrics, BTC yield, and other performance-related metrics on its website and social media platforms.
However, ABTC previously closed at $1.78 before opening at $1.77 today and later dropping 7.3% to $1.65 as of publication. The stock has an intra-day high of $1.79, an intra-day low of $1.64, and a 24-hour trading volume of $12.58 million.
Meanwhile, Eric Trump has previously emphasized that crypto is the future and that the U.S. must lead the way, as American Bitcoin sets the standards. The company aspires to become a category leader in the Bitcoin ecosystem as it increases its role in building America’s Bitcoin infrastructure backbone.
The BTC treasury also seeks to build America’s Bitcoin infrastructure by vertically integrating historically segmented aspects of the BTC value chain. It plans to access strategic capital for growth by utilizing public markets and funding options to accelerate BTC accumulation beyond its mining output.
Roth Capital’s analyst, Darren Aftahi, reportedly believes American Bitcoin has an advantage over other crypto companies and has granted it a buy rating. Aftahi has remained bullish on the sinking crypto stock despite a drop of over 70% in share prices since the company’s debut on Nasdaq in November and increasing pressure to stop the decline. The company’s stock plunged 39% on December 2 when major shareholders rushed to offload their long-held shares after the lock-up period.
Meanwhile, the analyst finds American Bitcoin’s business model sound enough, and Roth Capital has set the stock price target to $4. The target is more than double its current price of $1.65. It also represents more than double the stock’s current level, which implies an upside of about 140% if Aftahi’s projections play out.
The company has also announced its intention to create lasting value across all aspects of the Bitcoin ecosystem. However, a BOFA survey that polled 211 managers overseeing $504 billion in assets suggested that crypto allocations remain more symbolic than strategic. Nearly 97% of institutional fund managers have zero exposure to crypto in their portfolios.
Roth Capital has previously offered investment banking services to Hut 8 and American Bitcoin, and it has also worked with other Trump-linked ventures in different capacities. On the other hand, Hut 8 provides American Bitcoin with access to data centers, power, and mining proficiency.
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