American Bitcoin Shares Rise 1% Premarket After BTIG Initiates Coverage With Buy Rating

American Bitcoin (NASDAQ:ABTC) shares gained approximately 1% in premarket trading on Wednesday after BTIG initiated coverage of the company with a Buy rating and a $15 price target.

The brokerage issued its assessment the previous evening. Its target represents approximately 88% potential upside from the stock's previous closing price, based on the figures provided.

The rating reflects BTIG's assessment of American Bitcoin's mining operations, Bitcoin holdings and relationship with Hut 8.

BTIG Highlights Mining and Bitcoin Accumulation Strategy

BTIG's investment thesis focuses on two components of American Bitcoin's business: its Bitcoin mining operations and its programme of acquiring Bitcoin on the open market.

According to the brokerage, the company operates at approximately 28 exahashes per second, representing around 3% of the global Bitcoin network's hash rate.

The firm also highlighted American Bitcoin's holdings of approximately 8,000 BTC, which it said place the company among the 15 largest publicly listed Bitcoin holders in the United States.

These holdings expose the company's treasury value to movements in the price of Bitcoin.

BTIG identified American Bitcoin's operational partnership with Hut 8 as another factor in its assessment. The arrangement provides access to infrastructure and shared services.