Shares of American Bitcoin Company (ABTC), a U.S.-focused bitcoin mining and finance company founded by Eric Trump and Donald Trump Jr., plunged 50% on Tuesday. Bitcoin’s decline comes despite a rally above $91,000 and gains in nearly all crypto-related stocks.
Trading volume surged to 55 million shares, compared with an average daily volume of 3 million shares, according to Nasdaq data, indicating significant selling pressure.
Bitcoin’s decline is particularly noteworthy given Tuesday’s strong rally – Bitcoin has retraced all of its panic losses in the previous 36 hours to return to levels just below $92,000. This, in turn, drives up the prices of most cryptocurrency-related stocks
But that’s not the case with ABTC, which is still down 40%, while Hut 8 (HUT), which owns 80% of ABTC, is down 12%. The price of HUT has nearly tripled in the past six months as a beneficiary of Bitcoin miners shifting their business plans towards artificial intelligence infrastructure.
Speculation of a sharp drop in the share price has revolved around a potential internal lock-up sell-off. However, SEC filings show that the 180-day lockup period limits most historical ABTC holders from selling until March 3, 2026.
A separate 12-month rights agreement for investors, including Eric Trump and Donald Trump Jr., also provides for a break through Sept. 3, 2026. The individual’s lock-in period list is highlighted on the X account RisenFit.
The backdoor listing of ABTC and Gryphon was completed in September 2025, when the stock price was as high as $14. With today’s losses, the stock is now barely holding above $2.
ABTC’s collapse echoes other Trump-related cryptocurrency disappointments. World Liberty Financial’s WLFI token is down 70% from its peak. Meanwhile, Trump and Melania meme coins have also plummeted. Trump Media (DJT) – also associated with cryptocurrencies as it has built a sizable Bitcoin vault – is down about 75% year to date.
