Eric Trump-Backed American Bitcoin Plummets Over 60% in a Month, But Analyst Issues 'Buy' Rating for ABTC Stock

Analyst Rating and Price Target: Roth Capital analyst Darren Aftahi initiated coverage of American Bitcoin Corp. (ABTC) with a "Buy" rating and a price target of $4, indicating a potential upside of 106% despite recent sell-offs.

Stock Performance and Decline: ABTC's stock has experienced a significant decline of over 60% in the past month, largely due to the expiration of a lock-up period for early investors, including co-founder Eric Trump, which allowed them to sell shares.

Company Background: American Bitcoin is a majority-owned subsidiary of Hut 8 Corp. and has recently completed an all-stock merger, beginning trading on Nasdaq in early September, while currently holding a strategic Bitcoin reserve of 4,783 BTC valued at approximately $432 million.

Market Activity: As of the latest data, Bitcoin's price is $90,056.83, down 2.80% in the last 24 hours, while ABTC shares rose 1.55% in pre-market trading after a 5.37% decline during the regular session.