American Bitcoin Corp. (ABTC), a US-focused bitcoin mining and treasury company founded by Eric Trump and Donald Trump Jr., saw its shares drop as much as 50% on Tuesday. The drop came despite bitcoin surpassing $91,000 and gains in nearly all cryptocurrency-related stocks.
According to Nasdaq data, trading volume increased to 55 million shares compared to a daily average of 3 million, indicating strong selling pressure.
The drop is of particular interest given the strong rally in bitcoin on Tuesday, which has recovered its entire panic decline from the previous 36 hours to trade again at just under $92,000. This, in turn, has driven up most cryptocurrency-related stocks.
However, this is not the case for ABTC, which is still down 40% and Hut 8 (HUT), owner of 80% of ABTC, which is down 12%. Beneficiary of bitcoin miners shifting their business plans toward artificial intelligence infrastructure, HUT had nearly tripled its price in the previous six months.
Speculation about the massive share price drop revolved around a possible insider sale. However, SEC filings show a 180-day lockup restricting the sale of most historical ABTC holders until March 3, 2026.
A separate 12-month investor rights agreement also imposes a ban until September 3, 2026, including Eric Trump and Donald Trump Jr. A list of lockout periods per individual on the X RisenFit account has been highlighted.
ABTC’s reverse merger with Gryphon closed in September 2025, while shares traded as high as $14. With today’s drop, the stock is barely holding above $2.
ABTC’s collapse echoes other crypto disappointments linked to Trump. World Liberty Financial’s WLFI token is down 70% from its high. Meanwhile, TRUMP and MELANIA meme coins have also plummeted. Trump Media (DJT), also linked to cryptocurrencies as it has built up a sizable bitcoin treasury, is down approximately 75% so far this year.
