American Bitcoin, Trump’s son’s Bitcoin mining company, crashed 39%! Unlocking lock-up period for private equity shares triggers selling pressure

American Bitcoin (ABTC), a Bitcoin mining company founded by two sons of U.S. President Trump, plunged 50% in less than half an hour after opening due to the expiration of the private equity share lock-up period yesterday (2nd), and plunged nearly 39% throughout the day. Hundreds of millions of dollars in market value were wiped out in a single day, triggering panic among investors.
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By Donald Trump Jr., the eldest son of US President Trump (Donald Trump) Jr.) and his second son Eric Trump (Eric Trump), the Bitcoin mining company "American Bitcoin Corp." (Nasdaq code: ABTC) encountered huge selling pressure within 30 minutes of the opening of the US stock market yesterday (2), and the stock price plummeted by 50%. Although it rebounded after the close, it still ended up recording a drop of nearly 39%, with its market value shrinking to about $2 billion, causing many investors to panic.

The expiration of the lock-up period became a trigger, and early investors took profits

Market analysis pointed out that the main reason for this plunge was that the lock-up period of the private equity shares issued by American Bitcoin before the merger and listing officially expired on December 2. Therefore, a large number of early investors took the opportunity to dump their stocks, resulting in an overwhelming number of sell orders immediately after American Bitcoin opened. Although SEC filings show that most founding shareholders still need to comply with the 180-day lockup period until March 2026, the unlocked portion is enough to impact the market.

In this regard, Eric Trump also issued a message on the X platform today (3rd) to reassure investors, stating that "this is a completely expected normal fluctuation" and emphasized that he himself "will not sell a single stock." He further pointed out that the fundamentals of American Bitcoin are still strong:

Today, our private placement shares before the merger and listing have been officially unlocked, and these early investors can finally cash in their profits freely, which is why there will be fluctuations in the short term.

But our fundamentals are almost unmatched. Our biggest advantage is: mining at a cost of approximately 50% of the current Bitcoin spot price, with a gross profit margin of 56% in the third quarter, and improving the global Bitcoin computing power ranking every day. I will continue to hold all my ABTC shares and I am 100% committed to leading this company to become the industry leader.

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

What is American Bitcoin?

American Bitcoin was founded in early 2025 by two of Trump’s sons and the Hut 8 team. In September this year, it was listed on the Nasdaq market through a reverse merger with Gryphon Digital Mining. According to the official introduction of American Bitcoin, it is positioned as "the largest pure Bitcoin mining and holding platform in the United States" and adopts a "low-cost mining + long-term holding" strategy. However, after the stock price hit this year's highest point of $9.31 on September 9, American Bitcoin continued to fall. After the U.S. stock market closed last night (2), the stock price had reached $2.19.

In addition, not only American Bitcoin, but also encryption projects related to the Trump family seem to have stalled recently. World Liberty Financial (WLFI) tokens, TRUMP and MELANIA meme coins, and Trump Media Group (DJT) stock prices have all plummeted by dozens of percentage points this year. Market analysis points out that as Bitcoin retreats from its historical high of $126,000 to the current level of $90,000, it is also facing a severe test for the Trump family’s encryption territory.