Eric Trump-Backed American Bitcoin Corp Plummets Nearly 40% Amid Crypto Market Volatility
American Bitcoin Corp (ABTC), the cryptocurrency mining and treasury firm linked to Eric Trump and Donald Trump Jr., experienced a sharp decline in its stock price on Tuesday, tumbling nearly 40% amid what analysts are calling the ongoing ‘crypto winter’ and investor sell-off following lock-up period expiration.
Despite a rally in Bitcoin prices, which surged above $91,000 after recovering from recent dips, shares of ABTC suffered a dramatic downturn. According to Nasdaq data, ABTC shares fell as much as 50% intraday, settling with a loss near 40% by market close. This precipitous drop starkly contrasts with gains in many other crypto-related stocks, underscoring the volatility and investor skepticism surrounding the company.
The plunge coincided with a surge in trading volume, hitting approximately 55 million shares traded compared with an average daily volume of just 3 million. Market experts attribute the heavy selling pressure largely to the expiration of the lock-up period for early pre-merger investors, who were then free to sell their stakes. Eric Trump addressed the sell-off, confirming the unlock of private placement shares and acknowledging it may cause volatility but reaffirmed the company’s strong fundamentals and stated he was retaining his own shares.
ABTC made its public debut via a reverse merger with Gryphon Digital in September 2025, initially trading as high as $14 per share. Following the Tuesday sell-off, the stock price has fallen to just above $2 per share, raising concerns among investors about the firm’s resilience amidst turbulent crypto market conditions.
The decline in ABTC echoes broader challenges faced by Trump-associated crypto ventures. Other projects linked to the Trump family, such as the WLFI token and TRUMP/MELANIA meme coins, have recorded significant losses of 70% or more from their peak values. Trump Media (DJT), which holds a substantial Bitcoin treasury, is also down approximately 75% year to date.
Interestingly, Hut 8 Mining Corp (HUT), which owns an 80% stake in ABTC and recently diversified into AI infrastructure alongside bitcoin mining, saw its shares fall by 12% despite a prior six-month price surge. The sector-wide volatility highlights the difficulties crypto companies face as they navigate shifting investor sentiment and market dynamics during the current downturn.
Overall, the episode illustrates the risks associated with emerging crypto firms, particularly those tied to high-profile names and new public listings amid fluctuating market cycles. For American Bitcoin Corp, managing investor expectations and demonstrating sustainable growth will be critical as it seeks stability in the prevailing challenging environment.