The stock of American Bitcoin (ABTC) has fallen below its initial public offering (IPO) price a day after it began trading on the Nasdaq exchange.
Shares of the Bitcoin (BTC) mining company closed at $6.83 U.S. a share on Sept. 4, down from its IPO price of $6.90 U.S.
American Bitcoin, which is 80% owned by crypto miner Hut 8 (HUT) and 20% owned by U.S. President Trump’s family, went public via a special purpose acquisition company (SPAC) deal, merging with Gryphon Digital Mining (GRYP).
Part of the reason for the share price decline might be that American Bitcoin immediately announced plans for an at-the-market equity raise of up to $2.1 billion U.S.
The company said it plans to use the funds from the equity raise, which dilutes existing shareholders, to continue buying Bitcoin and add the cryptocurrency to its balance sheet.
American Bitcoin currently holds 2,443 Bitcoin worth nearly $300 million U.S. The company pairs Bitcoin mining with a treasury strategy focused on holding the digital asset.
Shares of American Bitcoin had traded as high as $14.65 U.S. during the market debut before quickly retreating.
The decline in ABTC stock coincides with a selloff in crypto, as the price of Bitcoin fell 2% on Sept. 4 as investors appear to be growing more cautious when it comes to digital assets.
Bitcoin is currently trading at $112,400 U.S.
