American Bitcoin Shares Suffer 40% Drop Following Lockup Expiration

Shares of American Bitcoin, a mining and accumulation company co-founded by Eric Trump and Donald Trump Jr., experienced a significant decline on Tuesday after a portion of the company’s stock was released from its lockup period.

Key Takeaways:

American Bitcoin saw its share price plummet nearly 50% when newly unlocked stocks entered the market following the end of the lockup period.
Eric Trump reacted to the drop, stating that the selloff was anticipated and confirmed he has no intention of selling his personal shares.
Investor sentiment remains shaky, as ABTC is still down roughly 76% from its peak in September, despite reporting strong earnings.

According to data from Google Finance, ABTC shares fell close to 50% in the first hour of trading, dropping from a prior closing price of $3.58 to as low as $1.80.

Despite a slight recovery during the trading session, the stock closed down 38.83% at $2.19, underscoring the significant effect of the unlocked shares entering the market.

American Bitcoin Shares Suffer 40% Drop Following Lockup Expiration

Eric Trump Addresses ABTC Selloff Post-Lockup

In a post on social media platform X, Eric Trump indicated that the stock drop was anticipated due to the unlocking of pre-merger private placement shares. He reassured investors that the company’s operations remain robust and emphasized he has no plans to divest his personal holdings. American Bitcoin went public on Nasdaq in September following its merger with Gryphon Digital Mining.

This sudden downturn occurred even with strong financial outcomes from the previous quarter. In October, American Bitcoin reported a third-quarter revenue of $64.2 million, a substantial rise from $11.6 million the previous year, and recorded a net income of $3.5 million—a significant turnaround from a $0.6 million loss.

CEO Michael Ho noted that the company has more than doubled its mining capacity and has improved its profit margins, reflecting a seven-point increase from the previous quarter.

Furthermore, American Bitcoin has been growing its treasury. As of November 13, the firm reported holding approximately 4,090 BTC, including coins that are secured and those pledged for new mining equipment. The management has positioned this strategy as a means to enhance direct investment in Bitcoin while also increasing production volumes.

Nevertheless, the attempted recovery did not manage to counteract a broader decline in the stock value since its peak of $9.31 in September. The shares are now down around 76.5% from that high, illustrating investor skepticism about stock unlocks and market volatility as early investors exit their positions.

This selloff reflects a broader downturn in crypto-related stocks. For instance, shares of Coinbase have dropped by about 20% over the last month, while Circle, the issuer of USDC, has fallen by 39%. Additionally, exchange operator Gemini's shares have seen a 47% decrease during the same period.

Allegations Against the Trump Family Regarding Cryptocurrency

Reports indicate that Democrats on the House Judiciary Committee accused the Trump administration of exploiting its presidential authority to benefit the Trump family's cryptocurrency ventures. They claim that around $800 million was generated from token sales in early 2025.

The allegations suggest that former President Trump blurred the lines between public service and personal profit, with estimates indicating that the Trump family's crypto investments could be valued at $11.6 billion, although exact figures are challenging to confirm.

These findings raise alarms regarding potential foreign influence, particularly concerning investments in World Liberty Financial’s $WLFI token. Lawmakers have drawn attention to a reported $75 million investment from crypto figure Justin Sun during a time of regulatory scrutiny, as well as a separate $100 million investment by a group referred to as Aqua 1 Foundation, which reportedly has ambiguous corporate records.

The leadership of this fund is said to include individuals connected to various legal and geopolitical issues.