Shares of American Bitcoin, the mining and accumulation firm co-founded by Eric Trump and Donald Trump Jr., tumbled sharply on Tuesday after a portion of the company’s stock was released from its lockup period. Key Takeaways: American Bitcoin shares plunged nearly 50% after newly unlocked stock hit the market following the lockup expiry. Eric Trump dismissed the selloff as expected and said he has no plans to sell his personal stake. Investor nerves remain high as ABTC is still down about 76% from its September peak despite strong earnings growth. Data from Google Finance showed ABTC plunged nearly 50% within the first hour of trading, falling to as low as $1.80 from a prior close of $3.58. The stock recovered modestly through the session but still ended the day down 38.83% at $2.19, highlighting the impact of newly unlocked shares hitting the market. Eric Trump Shrugs Off ABTC Selloff After Lockup Ends In a post on X, Eric Trump said the selloff was expected, noting that pre-merger private placement shares had just unlocked. He added that the company’s business remains strong and that he has no plans to sell his own holdings. American Bitcoin listed on Nasdaq in September after completing its merger with Gryphon Digital Mining. The sharp drop came despite solid financial results last quarter. In October, the company reported third-quarter revenue of $64.2 million, up from $11.6 million a year earlier, while net income swung to a $3.5 million profit from a $0.6 million loss. Chief executive Michael Ho said at the time the firm had more than doubled its mining capacity and improved margins, citing a seven-point increase quarter over quarter. Thanks @Coachjv_ . Today our pre-merger private placement shares unlocked — these early investors are freely available to cash in on their profits for the first time which is why we will see volatility. Our fundamentals are virtually unmatched and our differentiator: mining BTC… https://t.co/7h1Aqjt8iE — Eric Trump (@EricTrump) December 2, 2025 American Bitcoin has also been building its treasury. As of Nov. 13, the company said it held about 4,090 BTC, including coins kept in custody or pledged toward new mining equipment. Management has framed the strategy as a push to increase direct exposure to Bitcoin while also growing production volume. Even so, the recovery attempt failed to reverse a broader decline in the stock since its September peak of $9.31. Shares are now down roughly 76.5% from that high, reflecting investor caution around supply unlocks and volatility tied to early backers exiting positions. The selloff mirrors a wider slump in crypto-linked equities. Shares of Coinbase have fallen about 20% over the past month, while USDC issuer Circle is down 39%. Exchange operator Gemini has dropped 47% in the same period. Democrats Accuse Trump of Using Presidency to Enrich Family As reported, Democrats on the House Judiciary Committee released a report accusing the Trump administration of using presidential authority to benefit the Trump family’s crypto businesses, claiming roughly $800 million was generated from token sales in early 2025. The report alleges the president blurred the line between public office and private profit, and estimates that Trump family crypto holdings could reach $11.6 billion, though exact values are difficult to verify. The findings raise concerns about foreign influence, focusing on investments in World Liberty Financial’s $WLFI token. Lawmakers highlight a reported $75 million investment by crypto figure Justin Sun while he faced regulatory scrutiny, and a separate $100 million purchase by an entity called Aqua 1 Foundation, which investigators say lacks clear corporate records. The fund’s leadership is also alleged to include figures tied to legal and geopolitical controversies. The post Eric Trump-Linked American Bitcoin Stock Crashes 40% as Lockup Ends appeared first on Cryptonews .
