Shares of American Bitcoin (NASDAQ: ABTC) surged after filings revealed that board member Justin Mateen spent approximately $1.9 million to buy company stock.
Despite being down more than 95% from its high, American Bitcoin shares rallied 10% over 24 hours.
What is American Bitcoin trading at now?
Following Justin Mateen's buy of American Bitcoin shares, ABTC stock rose as much as 10% in today's trading session, moving from a Friday closing price of $6.47 to a current price of $7.11.
Mateen, a co-founder of the dating app Tinder and an American Bitcoin board member since March 2025, made these purchases over two consecutive trading sessions. According to regulatory filings, on August 5, he bought around 144,500 shares at an average price of $6.40 each, totaling roughly $925,000, and then added another 162,438 shares the next day at $6.19 each, for about $1 million.
In total, this amounted to 306,981 shares worth approximately $1.93 million. Adjusted for the company's recent reverse stock split, Mateen now owns 492,297 Class A shares.
Notably, insiders own about 7.1% of the company, equating to roughly $34 million. Mateen's purchase came just days after the company released its Q2 results and is reportedly the largest buy made by an American Bitcoin insider in the past 12 months.
According to MarketBeat, one of three analysts recommends 'Buy,' one suggests 'Hold,' and another advises 'Sell.' This results in a consensus forecast of 'Hold' for the stock. The average price target is $45.
However, Wall Street Zen downgraded its rating to 'Sell' over the weekend. Weiss Ratings also assigned the stock a 'Sell' rating. On the other hand, Maxim Group set a 'Buy' price target of $15 on July 21, and Zacks upgraded the stock to 'Hold' in April.
Why did ABTC stock fall 95%?
American Bitcoin went public in September 2025 via a reverse merger with Gryphon Digital Mining and hit a post-IPO high of $14.65. Since then, the stock has plunged over 95%.
Cryptopolitan reported that the company effected a 1-for-15 reverse stock split effective July 2, pushing the per-share price back above the Nasdaq's $1 minimum bid requirement and reducing the share count from about 1.09 billion to around 73 million to maintain its listing.
Previously, Cryptopolitan covered analyst Satish Patel of CoinShares' opinion that companies executing reverse stock splits show negative returns six to twelve months later, as firms undertaking such splits are typically in financial distress.
The company reported a net loss of $57.2 million for the three months ended June 30, an improvement from the approximately $82 million loss recorded in Q1, with mining revenue of $67.0 million.
CEO Mike Ho attributed a large part of the damage to the falling price of Bitcoin, which declined around 11% over the quarter, leading to $71.1 million in digital asset impairments. He stated the company mined 932 $BTC, its highest quarterly production ever, and increased its treasury holdings to over 8,000 coins.
According to BitcoinTreasuries.net, as of August 3, the asset total was 8,300 $BTC, placing American Bitcoin as the 16th largest public corporate holder.
