American Bitcoin (ABTC), backed by President Donald Trump’s sons, has added 139 BTC, raising the value of its total BTC reserve to $415 million. ABTC price seesawed between $4.08 and $4.65, recording a 2.20% gain to settle at $4.64 as of publication.
The Bitcoin miner announced that its current BTC holdings were acquired through its strategic at-market purchases and mining activities. It explained that the Bitcoin held in its reserve includes BTC held in custody or pledged for miner purchases under the BITMAIN agreement.
The company also emphasized that it will continue to provide periodic SPS (Satoshi Per Share) updates as part of its commitment to transparency. The SPS metric provides investors with visibility into the BTC they own indirectly through their equity in the company.
Eric Trump claims that ABTC uses a dual strategy
Eric Trump, co-founder and chief strategy officer of American Bitcoin, disclosed that the company will continue to rapidly and cost-effectively expand its BTC holdings through a dual strategy. He explained that the strategy will integrate scaled BTC mining operations with disciplined at-market BTC purchases.
The president’s son also emphasized that his company is committed to building momentum with its BTC reserve, which currently stands at 4,004 BTC. He also pointed out that the company’s SPS is at 432, representing a 3.35% surge in just 12 days. ABTC’s BTC reserve grew from 3,865 BTC on October 24 to 3,960 BTC on November 3, before adding another 44 BTC to reach its current total.
The company explained in a recent U.S. SEC filing that all its BTC purchases are primarily funded through proceeds generated under the American Bitcoin at-the-market (ATM) equity offering program. Pursuant to this arrangement, ABTC issued 11,017,341 shares of Class A common stock for gross proceeds of about $90 million. For this, it incurred issuance costs of roughly $2 million between September 3 and September 30. The company further issued 5,523,058 shares of Class A common stock, valued at approximately $33.9 million, with an issuance cost of $0.1 million, between October 1 and November 3.
ABTC also disclosed that it mined 563 BTC and bought 2,451 BTC during the three months ended September 30. It also mined 871 BTC and purchased 2,451 BTC during the nine months ended September 30. As of September 30, Bitcoin holdings included 2,385 BTC pledged or otherwise collateralized and 258 BTC purchased by ABTC between October 1 and November 3. Meanwhile, as of November 3, BTC held includes 2,776 BTC pledged or otherwise collateralized.
Simply Wall St analysts assess ABTC’s valuation
Simply Wall St analysts assessed ABTC’s valuation following the recent share price pullback. They found that the company’s stock had fallen by 5% over the past five days, 12% in the past week, and 33% over the past month. Value-focused investors have expressed concern about the persistent decline in the market.
The analysts also claim that ABTC’s share price has declined significantly over the year, with recent pullbacks worsening the company’s existing challenges. They added that the ongoing volatility is pushing many of the cautious investors to the sidelines. However, they noted that ABTC’s share price momentum appeared more promising earlier.
Meanwhile, the analysts questioned whether the recent sell-off means ABTC is trading at a bargain or if the market has already priced in future prospects. They also wondered if this could be a genuine buying opportunity or simply a case of fair value at work.
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