American Bitcoin (ABTC), the mining firm tied to Eric Trump and backed by Hut 8, is drawing headlines again – this time for all the wrong reasons.
CNBC’s Jim Cramer has put the stock under the spotlight, warning retail investors not to expect smooth sailing. What’s the reason for worry now? Let’s dive in.
Cramer Calls ABTC Pure Speculation
On his Mad Money Lightning Round, Cramer was blunt.
“It’s a spec. It’s your one spec, as I say, in how to make money… But that could lose everything. Just so long as you know that, that’s fine,” he told viewers.
The comments came as ABTC shares slipped 4.29% on Thursday, closing at $6.69, in line with a broader pullback across crypto markets.
From Nasdaq Debut to Trump’s Mining Vision
American Bitcoin only began trading on Nasdaq in early September after its merger with Gryphon Digital Mining. The company is majority-owned by Hut 8, one of the largest corporate holders of Bitcoin, and is branding itself as the backbone of America’s Bitcoin mining infrastructure.
The political link is hard to miss.
Eric Trump has been championing a strategy of mining Bitcoin below market cost and holding it in reserves, pitching ABTC as an alternative way to gain exposure to Bitcoin’s growth. This vision ties directly into Donald Trump’s broader push to make the U.S. a leader in crypto mining, which is a stark shift from when he once dismissed Bitcoin as a scam.
Green Mining in a Tough Market
Bitcoin mining has always been unforgiving. Energy bills alone can swallow 70–80% of costs, and difficulty levels keep rising every two weeks. Halving events only squeeze margins further.
ABTC’s merger with Gryphon could soften the blow. Gryphon is known for renewable energy strategies, using solar, wind, and hydro to cut costs. If successful, that could give American Bitcoin an edge in a sector where competition from Texas to Kazakhstan is fierce.
Sky-High Valuation, Mixed Returns
Despite its short trading history, the stock already carries a heavy premium. ABTC trades at a P/E ratio of 39.8x, higher than the U.S. software industry average of 35.4x and far above peers at 11x.
But the fundamentals aren’t keeping pace. Earnings growth has recently turned negative, and profit margins have slipped compared to last year. The stock’s performance has also been choppy, erasing earlier gains and leaving investors questioning whether the optimism is justified.
The Bigger Picture
Cramer’s warning may sound harsh, but it highlights the crossroads ABTC finds itself at. On one side, there’s the Trump-backed ambition to build America’s Bitcoin backbone with green mining and long-term reserves. On the other, there’s the brutal reality of mining economics, volatile markets, and a stock price that demands a lot from the future.
For now, American Bitcoin remains a high-risk, high-reward bet and one the market will be watching closely.
