American Bitcoin Corp. (NASDAQ:ABTC) may have been encountering heavy sell-offs lately, but a Roth Capital analyst painted a more than 100% upside for the stock on Wednesday.
‘Buy’ Rating For American Bitcoin
Roth Capital analyst Darren Aftahi initiated coverage of ABTC with a “Buy” rating and announced a price target of $4, according to Benzinga, representing a 106% upside from Wednesday’s closing price.
Aftahi is found to be correct 47% of the time.
Interestingly, Roth Capital is the underwriter for a special-purpose acquisition company called Colombier Acquisition Corp. III, which lists Donald Trump Jr. as a director, per a Reuters report.
See Also: Forget MSTR— This Bitcoin Mining Stock Is Ready For A Breakout As Momentum Score Spikes
What Lies Ahead For ABTC After Lock-Up Expiration?
The bullish analysis came despite the stock’s ongoing troubles, with its price tumbling more than 60% over the last month, and nearly 20% over the week.
The decline was triggered by the expiration of ABTC’s lock-up period for early investors, including co-founder Eric Trump, allowing them to sell their shares and realize profits.
While Trump said he is “100% committed" and won’t be selling his stake, the stock plunged 38% in the immediate aftermath.
American Bitcoin, a majority-owned subsidiary of Hut 8 Corp. (NASDAQ:HUT), completed its all-stock merger and began trading on Nasdaq in early September.
The company is building its own strategic Bitcoin reserve and currently holds 4,783 BTC, worth $432 million, according to Bitcointreasuries.net.
Price Action: At the time of writing, BTC was exchanging hands at $90,056.83, down 2.80% in the last 24 hours, according to data from Benzinga Pro.
American Bitcoin shares rose 1.55% in pre-market trading after closing 5.37% lower at $1.940 during Wednesday’s regular trading session.
Benzinga's Edge Stock Rankings showed that the stock had a weaker price trend in the short, medium and long terms. How does it compare with Strategy Inc. (NASDAQ:MSTR) and other Bitcoin treasury stocks? Find out here.
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