“Trump sons’ crypto company lost $1 billion in valueShares of American Bitcoin, a cryptocurrency mining company backed by Donald Trump Jr. and Eric Trump, fell by almost 40%, losing
about $1 billion in market capitalization. Eric Trump attributed the decline to investors’ ability to lock in profits after the
share lock-up period ended.
”, — write: unn.ua
DetailsIt is noted that American Bitcoin’s quotes closed down 38.8%, resulting in a loss of about $1 billion in market capitalization. Bloomberg data shows that the trading volume of the shares was almost 40 times higher than the daily average.
Eric Trump explained the decline by saying that investors who invested $215 million in private financing in June had their first opportunity to “lock in profits,” which caused a high level of volatility.
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For referenceAmerican Bitcoin is engaged in Bitcoin mining (creating new coins) and holds its own “strategic” reserve of cryptocurrency.
Eric Trump is the co-founder and chief strategic officer of the company, and Donald Trump Jr. is one of the early investors. American Bitcoin President Matt Prusak noted that the end of the share lock-up period “affects who can buy or sell, but does not affect the company’s assets and the team’s daily operations.”
American Bitcoin is one of several crypto companies supported by the Trump sons. In particular, Donald Trump Jr. and Eric Trump also co-founded World Liberty Financial, which has issued billions of its own tokens and lists Donald Trump as co-founder emeritus. The value of its WLF token has fallen by 86% over the year, according to CoinMarketCap.
Trump Media & Technology Group, which operates the Truth Social social network and is controlled by the president’s family, announced plans this year to raise $1.5 billion in new equity and another billion through convertible bonds to create a “bitcoin treasury.”
TMTG shares have fallen by almost 70% since the beginning of the year. Shares of other so-called “bitcoin reserve” companies have also sharply declined in recent months due to a massive sell-off of hundreds of digital assets.
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