BTIG initiates American Bitcoin stock coverage with buy rating

BTIG, a firm specializing in investment research, has taken note of American Bitcoin Corp (ABTC) and has decided to include the company in its portfolio of covered stocks, assigning it a positive "Buy" rating. This decision comes with a price target of $15.00, which is significantly higher than the current trading price of $7.99, indicating an 88% potential increase.

This rating is based on several factors, including American Bitcoin's dual strategy of Bitcoin mining and purchases on the open market. The company operates a network of approximately 28 exahash, which accounts for around 3% of the global hash rate, and currently holds around 8,000 Bitcoin, positioning it as one of the largest Bitcoin holders among U.S. public companies.

American Bitcoin's strategy in mining is supported by its partnership with Hut 8, a leading Bitcoin mining company, which provides the company with cost-effective power through an asset-light power infrastructure model. Despite the company's impressive revenue growth of 289% over the past year, it remains unprofitable and has negative cash flow.

Analysts predict that American Bitcoin will become profitable this year, which bolsters BTIG's positive outlook for the stock. Hut 8 is the largest shareholder of American Bitcoin, holding approximately 54% of the company's equity, a decrease from the 80% held at the time of the spinoff in the third quarter of 2025. Since the spinoff, Hut 8 has not sold any shares of American Bitcoin.

BTIG believes that American Bitcoin's mining model, which is cost-efficient, provides a competitive edge over other companies in the market. The stock is currently considered undervalued according to InvestingPro data, with analysts highlighting the potential for high price volatility and cash burn rate as factors to consider. The firm anticipates that Bitcoin's price will continue to be volatile but will likely trend upward due to increasing adoption and its finite supply.

Nevertheless, American Bitcoin reported a revenue shortfall in its second-quarter earnings, falling short of Wall Street expectations. However, the company did achieve record Bitcoin production, mining 932 Bitcoin, a 14% increase from the previous quarter. The company's Bitcoin reserves also reached 8,002 Bitcoin by the end of the quarter.

These positive operational metrics were noted amidst a period of weaker cryptocurrency prices. Despite the revenue miss, the company maintained steady margins. This mixed performance from American Bitcoin reflects the broader uncertainties within the cryptocurrency market. Other U.S.-listed cryptocurrency stocks have also experienced a surge, as Bitcoin reached its highest level in three months, increasing by 4.8% to $81,105.73.

This provides insight into the current market conditions for American Bitcoin and the wider cryptocurrency sector.