Eric Trump’s American Bitcoin Faces 40% Drop as Lockup Period Ends

The price of American Bitcoin Corp (ABTC), which is linked to Eric Trump, took a significant hit of roughly 40% following the expiration of a lockup period. This volatility has left traders intrigued as the stock experienced a dramatic fall before managing a slight recovery.

Key Takeaways

Price Drop: American Bitcoin's value plummeted by nearly 40% as locked-up shares from early investors became available for sale.
Market Volatility: After the steep decline on December 2, the stock price fluctuated but settled in a wider range shortly after.
Company Performance: Despite recent gains in revenue and income, ABTC’s stock has faced ongoing downward pressure.
Future Outlook: Analysts advise investors to monitor upcoming equity unlocks, as additional shares hitting the market may further impact stock prices.

American Bitcoin stock chart showing sharp post-lockup price plunge

American Bitcoin's Recent Performance

Over the last 24 hours, the price of American Bitcoin (ABTC) has shown signs of recovery following a volatile drop. After a steep decline, the stock has been trading in a wide range but is currently sitting at a mid-point following a wipeout caused by the expiration of share lockup.

On December 2, traders witnessed a drastic fall in American Bitcoin's price. The miner, backed by the Trump family, opened amidst intense selling as previously locked shares became available. The stock nearly lost half its value before closing approximately 40% lower for the day.

Despite this initial drop, by December 4, the stock was trading within the range of $2.25 to $2.77, indicating a strong two-way trading flow and a potential bounce back from the selling pressure observed the previous day.

Eric Trump’s Involvement

American Bitcoin Corp, traded on NASDAQ, saw its price dip from a previous close of $3.58 to an intraday low of $1.80 shortly after the market opened on December 2. The shares ended at $2.19, marking a substantial loss of 38.83%. This fall coincided with the release from lockup of pre-merger private placement shares, issued before American Bitcoin's merger with Gryphon Digital Mining, which took place in September.

Eric Trump, a co-founder of the company, noted on social media that the unlocking of these shares would likely lead to volatility rather than indicating a loss of investor confidence. He emphasized that the company’s fundamentals remain strong and he is committed to holding his shares in the company during this period of turbulence.

Strong Quarterly Results Amidst Difficulties

The recent sell-off is noteworthy, especially given that just weeks prior, American Bitcoin reported what it deemed strong financial results for the third quarter. The revenue surged to $64.2 million from $11.6 million the year before, with net income reaching $3.5 million, a notable improvement from the $0.6 million loss in the same quarter the previous year. CEO Michael Ho highlighted the company’s rapid growth, mentioning that they have more than doubled their mining capacity, revenue, and gross margin quarter-over-quarter.

Additionally, the company has been actively building its own bitcoin reserve. As of November 13, American Bitcoin reported holding approximately 4,090 BTC in its treasury, which includes coins in custody and those earmarked for miner purchases. This positions shareholders favorably by providing them exposure to both the asset and the mining operations.

Increased Pressure on Shares and Market Conditions

Despite the positive operational metrics, ABTC’s stock has witnessed a steady decline over recent months. Since reaching its peak of $9.31 in September, the share price has fallen by about 76.5%, marking it as one of the more volatile stocks associated with bitcoin. The latest drop has intensified this trend, rapidly compressing a gradual revaluation into a single trading session.

The broader market conditions for cryptocurrency-linked equities haven't provided much support. Notably, Coinbase's shares have decreased by 20% in one month, while Circle, the issuer of USDC, has dropped 39%, and Gemini has seen a decline of 47%. This reflects an overall downturn in the digital asset market. Looking ahead, analyst Brian Dobson from Clear Street indicated to Bloomberg that more equity unlocks for ABTC are anticipated in 2026. He warned investors to keep a close eye on these expirations, suggesting that additional supply could exert further pressure on the already struggling stock.