American Bitcoin (ABTC) Stock Crashes 50% as Early Investors Dump Shares After Lockup Ends

TLDR

Table of Contents

American Bitcoin (ABTC) shares crashed 50% to $1.75 as pre-merger investors sold after lockup expiration
Trading volume surged to 55 million shares versus 3 million average, marking heaviest selling since public debut
Eric Trump said early investors cashed out profits, but he’s keeping all shares and cited 56% gross margins
Stock has lost 78% since September peak of $9.31, now trading barely above $2 per share
Hut 8 (HUT), which owns 80% of ABTC, fell 12% while Bitcoin rallied above $91,000

American Bitcoin Corp experienced a brutal trading session on Tuesday. Shares plummeted more than 50% to $1.75 despite Bitcoin rallying above $91,000. The mining company led by Eric Trump saw its worst day since going public.

American Bitcoin Corp, ABTC

Trading volume exploded to 55 million shares. That’s roughly 18 times the normal daily average of 3 million shares. The surge in activity signaled a rush for the exits among shareholders who gained the ability to sell for the first time.

The stock debuted on Nasdaq in September through a reverse merger with Gryphon Digital Mining. Shares peaked at $9.31 shortly after listing. Tuesday’s close marked a 78% decline from that high. The company traded as high as $14 during the merger process.

Lockup Expiration Triggers Selling Wave

Eric Trump addressed the crash directly on social media. He explained that pre-merger private placement shares unlocked on Tuesday. These early backers could finally take profits after months of restrictions.

“Today our pre-merger private placement shares unlocked,” Trump wrote. “These early investors are freely available to cash in on their profits for the first time which is why we will see volatility.”

Most major shareholders remain locked up, according to SEC filings. A 180-day restriction prevents historical ABTC holders from selling until March 3, 2026. A separate 12-month Investors Rights Agreement extends through September 3, 2026 for some holders. This includes Eric Trump and Donald Trump Jr.

The timing of the collapse stood out. Bitcoin recovered from a dip below $90,000 to trade back near $92,000. Most crypto-related stocks posted gains. ABTC moved in the opposite direction.

Hut 8 Dragged Lower

The selloff spread to Hut 8, which owns 80% of American Bitcoin Corp. HUT shares dropped 12% on Tuesday. This broke a strong rally that had tripled the stock price over six months.

Hut 8 had benefited from shifting its business toward AI infrastructure. The connection to ABTC proved costly on Tuesday.

Trump defended the company’s fundamentals in his statement. He pointed to mining costs at roughly 50% of Bitcoin’s spot price. The company posted a 56% gross margin in the third quarter. “I’m holding all my ABTC shares,” Trump said. “I’m 100% committed to leading the industry.”

Company Reports Profitability

American Bitcoin swung to profitability in Q3. Net income hit $3.47 million while revenue reached $64.2 million. The company added 3,000 Bitcoin to its treasury during the quarter. Total holdings now exceed 4,000 BTC.

The stock joins other struggling Trump family crypto ventures. World Liberty Financial’s WLFI token has dropped 70% from its peak. TRUMP and MELANIA meme coins have also declined sharply. Trump Media, which holds Bitcoin, has fallen about 75% year to date.

ABTC closed Tuesday barely above $2 per share on the heaviest trading volume since its public listing.

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