Shares of American Bitcoin (ABTC), the mining company co-founded by Eric and Donald Trump Jr., plunged nearly 50% in the first hour of trading on December 2, hitting a low of $1.80 from the previous closing price of $3.58.
ABTC eventually Closed The day fell 38.83% to $2.19, although it recovered slightly – up 10.96% – in after-hours trading on December 3.
US Bitcoin Crashing – But Why?
This dramatic crash was not caused by market rumors, but by the expiration of a stock freeze period, which brought a huge stock of previously restricted shares onto the market.
These lock-up agreements, which are standard following a company’s stock market listing following its merger with Gryphon Digital Mining, temporarily prevent insiders and pre-merger private placement shareholders from selling their shares.
However, the moment this restriction was lifted, a huge supply of previously restricted shares entered the market.
This increase in the number of shares available led to a dramatic decline in the stock, with it falling almost 50% in the first hour of trading.
Eric Trump defends the sell-off
Eric Trump confirmed this technical statement about
Source: Eric Trump/X
Crucially, he reaffirmed his long-term commitment, noting that he has no plans to sell his personal assets, but that the short-term supply shock was overwhelming.
The severity of the market reaction is in stark contrast to the robust underlying financial and operational health of US Bitcoin.
Trump-backed corporate Bitcoin holdings and more
The company reported impressive third-quarter results in October. Revenue was $64.2 million, a significant increase from $11.6 million a year earlier. Additionally, the company achieved a positive turnaround in net income, posting a profit of $3.5 million.
In addition to mining, the company has been actively building its treasury. It owns approximately 4,090 BTC as of mid-November, which aligns with management’s stated goal of increasing direct exposure to Bitcoin. [BTC] while production is scaled up.
But the selloff also reflected the stock’s shaky history and broader weakness in crypto stocks.
US Bitcoin has been highly volatile since its debut on the Nasdaq. In fact, the stock rose to $9.31 in early September after a $170 million investment before entering a steady decline.
Even before the lockup expired, the stock lost momentum, and the latest decline pushed it nearly 76.5% below its peak.
The Trump-backed US Bitcoin had also seen a rise
This followed the recent surge in US Bitcoin, fueled by Dominari Holdings’ significant investments and merger-driven entry into the public markets, documenting how aggressively the Trump family is expanding its footprint in the crypto ecosystem.
In addition to their stake in ABTC, the Trumps now also control touchpoints in mining, stablecoins, memecoins, token launches and even crypto ETF applications through World Liberty Financial. [WLFI] and related companies.
Final thoughts
- Despite strong revenue growth, rising profitability and expanded mining capacity, ABTC was unable to withstand the supply shock.
- Dominari’s investment and merger with Gryphon gave ABTC a boost, but also exposed it to the pressures of public market trading.