ABTC Raises BTC Reserves to 4,004 Amid Share Slump
ABTC, a US-based Bitcoin mining firm backed by Donald Trump’s sons, has boosted its Bitcoin reserves to 4,004 BTC (approx. $415 M) from 3,865 BTC. The company uses a dual strategy of active mining and cost-effective market purchases. It has also pledged some BTC as collateral to Bitmain to acquire mining rigs.
To improve transparency, ABTC will start regular disclosures of Satoshi per Share (SPS) data. Despite its growing Bitcoin reserves, ABTC’s shares have slumped 33% over the past month and 12% last week. The sharp share volatility has sparked debate over potential undervaluation among traders.
This development aligns with broader institutional accumulation trends, exemplified by MicroStrategy’s recent purchase of 1,420 BTC. Institutional Bitcoin demand is rising. While this trend is bullish for Bitcoin’s long-term outlook, traders should watch short-term volatility in ABTC stock and overall market sentiment.
Bullish
This institutional accumulation of Bitcoin by ABTC reduces available supply and signals strong confidence from major stakeholders, which is typically bullish for Bitcoin’s price. Although ABTC shares have experienced significant volatility, the increased Bitcoin reserves and transparency measures are likely to boost market sentiment in the long term. Traders may see this as an opportunity to accumulate Bitcoin amid growing institutional demand, despite short-term fluctuations in ABTC stock.