American Bitcoin Corp. (NASDAQ:ABTC) is set to report its second-quarter earnings before the opening bell on Monday. Here’s what’s happening with the company and its stock.
A Look at Earnings, Revenue Forecast
Analysts expect the company to post earnings per share of $0.15, with quarterly revenue projected at $73.80 million, up about 19% from the prior quarter.
As of this writing, the ABTC stock has a consensus price target of $8 based on the ratings of three analysts, with the highest estimate of $15 issued by Maxim Group last month.
Interestingly, all three analysts, Roth Capital, H.C. Wainwright & Co. and Maxim Group, initiated coverage of the ABTC stock with a "Buy" rating.
Rising Short Interest: Cause for alarm?
Meanwhile, short interest in the stock climbed from 2.3% to 3.2% of the company’s publicly available float. A rising short interest is typically interpreted as a bearish signal.
The Moving Average Convergence Divergence indicator, which compares two exponential moving averages of an asset’s price, flashed a “Buy” signal for ABTC, according to TradingView.
The Bull Bear Power indicator, which measures the strength of buyers and sellers, remained "Neutral," and so did the Relative Strength Index.
Will ABTC Stock Bounce Back?
American Bitcoin started trading on the Nasdaq Exchange in September of last year. The company is building its own strategic Bitcoin reserve and currently holds 8,000 BTC, worth $500 million, making it the 16th-largest corporate BTC holder.
However, the company’s journey since launch has been anything but smooth. The stock has tumbled 95% since going public.
American Bitcoin reportedly burned $500 million in shareholder value since going public, while the personal wealth of Eric Trump, its co-founder, jumped from $190 million to $280 million.
The report mentioned that the firm’s all-in costs to mine Bitcoin—including machines, marketing and capital—surged sharply, leaving thin margins that vanished as BTC prices dropped in the bear market. Trump dismissed the report, alleging political bias.
Price Action: At the time of writing, BTC was exchanging hands at $62,579.53, down 1.31% in the last 24 hours, according to data from Benzinga Pro.
American Bitcoin shares were up 1.08% in pre-market trading after closing 6.44% lower at $5.52 during Friday’s regular trading session.
Benzinga’s Edge Stock Rankings show the ABTC stock is trending weakly across short-, medium- and long-term horizons.
Photo courtesy: Maxim Elramsisy / Shutterstock
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