Eric Trump-Linked American Bitcoin Stock Plunges 40% as Lockup Expires

Lockup's over, and the sell-off is on. Shares tied to a Bitcoin venture associated with Eric Trump just cratered 40% as early investors hit the exit.

Post-Lockup Pressure Cooker

That 40% nosedive isn't a mystery—it's a classic post-lockup purge. When restrictions lift, insiders and early backers often cash out, flooding the market with supply and testing retail investor conviction. It's a brutal, predictable rite of passage for any newly public venture, especially one in the volatile crypto space.

The Celebrity Crypto Premium Evaporates

The Trump name carries weight, but in crypto markets, it's a double-edged sword. Initial hype around high-profile associations can inflate valuations, creating a 'celebrity premium' that's notoriously fragile. When the first real test comes—like a lockup expiry—that speculative air can rush out faster than you can say 'moon.' It's a stark reminder that in digital assets, code and adoption ultimately trump any surname.

A Rude Awakening for Speculative Plays

This kind of move separates the tourists from the natives. For every serious builder in crypto, there are a dozen speculative plays riding hype cycles. A 40% single-day drop acts as a brutal filter, shaking out weak hands and reminding everyone that real value isn't printed by press releases—it's built through utility and adoption. Consider it a masterclass in market gravity, with a side of cynical Wall Street realism: sometimes, a 'strategic partnership' is just a fancy name for a temporary marketing boost.

The takeaway? In the long game of crypto, infrastructure and use cases win. Short-term volatility tied to events like lockup expiries are just noise on the chart for those focused on the transformative potential of blockchain technology. The sector's foundation gets stronger by the day, even when a few overhyped stocks correct back to reality.

Eric Trump Shrugs Off ABTC Selloff After Lockup Ends

In a post on X, Eric Trump said the selloff was expected, noting that pre-merger private placement shares had just unlocked.

He added that the company’s business remains strong and that he has no plans to sell his own holdings. American Bitcoin listed on Nasdaq in September after completing its merger with Gryphon Digital Mining.

The sharp drop came despite solid financial results last quarter. In October, the company reported third-quarter revenue of $64.2 million, up from $11.6 million a year earlier, while net income swung to a $3.5 million profit from a $0.6 million loss.

Chief executive Michael Ho said at the time the firm had more than doubled its mining capacity and improved margins, citing a seven-point increase quarter over quarter.

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

American bitcoin has also been building its treasury. As of Nov. 13, the company said it held about 4,090 BTC, including coins kept in custody or pledged toward new mining equipment.

Management has framed the strategy as a push to increase direct exposure to Bitcoin while also growing production volume.

Even so, the recovery attempt failed to reverse a broader decline in the stock since its September peak of $9.31.

Shares are now down roughly 76.5% from that high, reflecting investor caution around supply unlocks and volatility tied to early backers exiting positions.

The selloff mirrors a wider slump in crypto-linked equities. Shares of Coinbase have fallen about 20% over the past month, while USDC issuer Circle is down 39%. Exchange operator Gemini has dropped 47% in the same period.

Democrats Accuse Trump of Using Presidency to Enrich Family

As reported, Democrats on the House Judiciary Committee released a report accusing the Trump administration of using presidential authority to benefit the Trump family’s crypto businesses, claiming roughly $800 million was generated from token sales in early 2025.

The report alleges the president blurred the line between public office and private profit, and estimates that Trump family crypto holdings could reach $11.6 billion, though exact values are difficult to verify.

The findings raise concerns about foreign influence, focusing on investments in World Liberty Financial’s $WLFI token.

Lawmakers highlight a reported $75 million investment by crypto figure Justin SUN while he faced regulatory scrutiny, and a separate $100 million purchase by an entity called Aqua 1 Foundation, which investigators say lacks clear corporate records.

The fund’s leadership is also alleged to include figures tied to legal and geopolitical controversies.