Trump-Backed American Bitcoin Shares Plunge Despite Bitcoin Rally

American Bitcoin Corp. (ABTC), the U.S.-focused bitcoin mining and treasury company founded by Eric Trump and Donald Trump Jr., saw its shares tumble as much as 50% on Tuesday, marking another disappointing outcome for Trump family crypto ventures. The drop occurred even as bitcoin surged above $91,000 and most other crypto-related stocks posted gains.

Trading volume spiked to 55 million shares, compared with a daily average of 3 million, highlighting heavy selling pressure. While bitcoin recovered from a 36-hour dip to nearly $92,000, ABTC remained down 40%, with Hut 8 (HUT)—which owns 80% of ABTC—slipping 12%. HUT had nearly tripled over the past six months, benefiting from miners shifting into AI infrastructure.

Speculation pointed to potential insider selling, but SEC filings indicate a 180-day lockup restricting most historical ABTC holders from selling until March 3, 2026. A 12-month Investor Rights Agreement also enforces a standstill through September 3, 2026, covering Eric and Donald Trump Jr. Detailed lockup schedules were highlighted on X by account RisenFit.

Addressing the sell-off, Eric Trump posted on X:
“Today our pre-merger private placement shares unlocked — these early investors can now cash in on profits, which is why we’re seeing volatility. Our fundamentals are unmatched: mining BTC at ~50% of spot with 56% gross margin in Q3, climbing the BTC ranks daily. I’m holding all my ABTC shares — 100% committed to leading the industry.”

ABTC went public via a reverse merger with Gryphon Digital, closing in September 2025 with shares trading near $14. After Tuesday’s decline, the stock hovers just above $2.

ABTC’s collapse follows a pattern of Trump-linked crypto disappointments: World Liberty Financial’s WLFI token is down 70% from its peak, TRUMP and MELANIA meme coins have plunged, and Trump Media (DJT)—which holds a sizable bitcoin treasury—has fallen roughly 75% year-to-date.