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Shares of American Bitcoin, the mining and accumulation company co-founded by Eric Trump and Donald Trump Jr., experienced a significant decline on Tuesday following the release of a portion of the company’s stock from its lockup period.
Key Takeaways:
- American Bitcoin shares fell nearly 50% after newly released stock entered the market post-lockup expiration.
- Eric Trump characterized the selloff as anticipated and stated he has no intention of selling his personal stake.
- Investor anxiety persists as ABTC remains approximately 76% lower than its peak in September, despite robust earnings growth.
Data from Google Finance indicated that ABTC dropped nearly 50% within the first hour of trading, reaching a low of $1.80 from a previous close of $3.58.
The stock saw a slight recovery throughout the session but ultimately closed the day down 38.83% at $2.19, underscoring the effect of newly unlocked shares entering the market.
Eric Trump Dismisses ABTC Selloff After Lockup Concludes
In a message on X, Eric Trump remarked that the selloff was anticipated, pointing out that pre-merger private placement shares had just become available.
He emphasized that the company’s operations remain robust and that he has no plans to divest his own holdings. American Bitcoin went public on Nasdaq in September after finalizing its merger with Gryphon Digital Mining.
The steep decline occurred despite strong financial results from the previous quarter. In October, the company announced third-quarter revenue of $64.2 million, an increase from $11.6 million a year prior, while net income shifted to a $3.5 million profit from a $0.6 million loss.
Chief executive Michael Ho noted at that time that the firm had more than doubled its mining capacity and enhanced margins, citing a seven-point increase quarter over quarter.
Thanks @Coachjv_. Today our pre-merger private placement shares unlocked — these early investors are freely available to cash in on their profits for the first time which is why we will see volatility.
Our fundamentals are virtually unmatched and our differentiator: mining BTC… https://t.co/7h1Aqjt8iE— Eric Trump (@EricTrump) December 2, 2025
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American Bitcoin has also been expanding its treasury. As of Nov. 13, the company reported holding approximately 4,090 BTC, including coins stored in custody or allocated for new mining equipment.
Management has positioned this strategy as an effort to enhance direct exposure to Bitcoin while simultaneously increasing production volume.
Nonetheless, the recovery effort did not succeed in reversing a broader decline in the stock since its September peak of $9.31.
Shares are now down roughly 76.5% from that high, reflecting investor caution regarding supply unlocks and volatility associated with early investors exiting their positions.
The selloff parallels a wider downturn in crypto-related equities. Shares of Coinbase have decreased by about 20% over the past month, while USDC issuer Circle has dropped 39%. Exchange operator Gemini has seen a 47% decline during the same timeframe.
Democrats Accuse Trump of Utilizing Presidency to Enrich Family
As reported, Democrats on the House Judiciary Committee published a report alleging that the Trump administration leveraged presidential authority to benefit the Trump family’s crypto enterprises, claiming approximately $800 million was generated from token sales in early 2025.
The report asserts that the president blurred the distinction between public service and private gain, estimating that Trump family crypto holdings could amount to $11.6 billion, although precise figures are challenging to verify.
The findings raise concerns regarding foreign influence, particularly focusing on investments in World Liberty Financial’s $WLFI token.
Lawmakers emphasize a reported $75 million investment by crypto figure Justin Sun while he was under regulatory scrutiny, along with a separate $100 million acquisition by an entity known as Aqua 1 Foundation, which investigators claim lacks clear corporate documentation.
The fund’s leadership is also alleged to include individuals associated with legal and geopolitical controversies.
The post Eric Trump-Linked American Bitcoin Stock Crashes 40% as Lockup Ends appeared first on Cryptonews.
