American Bitcoin Corp. (ABTC), the U.S.-focused bitcoin mining and treasury company founded by Eric Trump and Donald Trump Jr., saw its shares plunge as much as 50% on Tuesday, despite bitcoin rallying above $91,000 and most crypto-related stocks gaining.
Trading volume spiked to 55 million shares, far exceeding the 3 million daily average, indicating heavy selling pressure. While bitcoin recovered from a recent dip to nearly $92,000, ABTC remained down 40%, pulling Hut 8 (HUT)—which owns 80% of ABTC—down 12%. HUT had nearly tripled over the past six months, benefiting from miners pivoting into AI infrastructure.
Speculation pointed to insider selling, but SEC filings show a 180-day lockup for most historical ABTC holders through March 3, 2026, with a 12-month Investor Rights Agreement enforcing a standstill through September 3, 2026, including Eric and Donald Trump Jr. Lockup details were highlighted on X by account RisenFit.
Responding to the sell-off on X, Eric Trump said:
“Pre-merger private placement shares unlocked today — early investors can cash in, causing volatility. Our fundamentals are strong: mining BTC at ~50% of spot with 56% gross margin in Q3. I’m holding all my ABTC shares — fully committed to leading the industry.”
ABTC went public via a reverse merger with Gryphon Digital in September 2025, trading near $14. After Tuesday’s drop, shares hover just above $2.
The decline adds to a string of Trump-linked crypto setbacks. WLFI token is down 70% from its peak, TRUMP and MELANIA meme coins have collapsed, and Trump Media (DJT)—which holds a substantial bitcoin treasury—has fallen roughly 75% year-to-date
