American Bitcoin (ABTC) Stock Plummets 50% as Bitcoin Itself Soars - A Trump-Linked Company’s Wild Ride

A Trump-affiliated company's stock is getting hammered while the asset it's named after rockets higher. Welcome to the bizarre disconnect of crypto-adjacent equities.

The Great Decoupling

American Bitcoin (ABTC) shares cratered a staggering 50%. That's a halving no crypto enthusiast wants. Meanwhile, Bitcoin itself is surging, painting a stark picture of a stock completely untethered from its namesake's performance. It turns out slapping 'Bitcoin' in your ticker doesn't magically inherit the volatility—or the gains.

Narrative vs. Numbers

The market is delivering a brutal lesson: a story stock built on political and crypto hype can collapse under its own weight. Investors chased the narrative of a Trump-linked venture tapping into the digital gold rush, only to find the fundamentals—or lack thereof—matter more. It's the oldest trick in the finance book: sell the sizzle, watch the steak burn.

The Cynical Take

Here's the finance jab: this is what happens when a stock trades more on press releases and political affiliation than on revenue streams or a coherent business model. A 50% plunge while the underlying asset rallies isn't an anomaly; it's a correction to reality. Sometimes, the market isn't irrational—it's just brutally efficient at separating signal from noise.

The ABTC saga is a stark reminder that in the frenzied crossover of politics and crypto, the only thing that's guaranteed is volatility. And not always the rewarding kind.

TLDR

• American Bitcoin Corp (ABTC) stock plunged 50% in early trading on heavy volume of 55 million shares, down from 3 million daily average
• The decline occurred despite Bitcoin rallying above $91,000 and most crypto stocks gaining, with ABTC falling to $1.75 per share
• Eric Trump attributed the drop to pre-merger private placement shares unlocking, allowing early investors to take profits for the first time
• ABTC has fallen 78% from its September high of $9.31, now trading barely above $2 per share
• Majority owner Hut 8 (HUT) dropped 12% alongside ABTC’s collapse, though most major shareholders remain restricted from selling until March 2026

American Bitcoin Corp shares collapsed on Tuesday in one of the most dramatic single-day drops for a crypto-linked stock. The mining and treasury company, headed by Eric Trump, saw shares plunge more than 50% despite Bitcoin itself rallying above $91,000.

American bitcoin Corp, ABTC

The stock hit an intraday low of $1.75, down from recent levels NEAR $3.50. Trading volume exploded to 55 million shares compared to the typical 3 million daily average. This massive spike in activity signaled intense selling pressure hitting the stock.

ABTC debuted on Nasdaq in early September through a reverse merger with Gryphon Digital Mining. At that time, shares traded as high as $14. The stock has now lost roughly 78% of its value from its post-listing peak of $9.31 on September 9.

The timing of the crash caught many traders off guard. Most crypto-related stocks posted gains on Tuesday as Bitcoin recovered from a brief dip below $90,000. The broader digital asset market showed strength, making ABTC’s decline stand out even more.

Lockup Period Ends

Eric TRUMP addressed the selling pressure directly on social media. He explained that pre-merger private placement shares unlocked on Tuesday. These early investors gained the ability to cash out their profits for the first time.

“Today our pre-merger private placement shares unlocked,” Trump wrote on X. “These early investors are freely available to cash in on their profits for the first time which is why we will see volatility.”

However, SEC filings show that most major shareholders remain restricted. A 180-day lockup prevents historical ABTC holders from selling until March 3, 2026. An additional 12-month Investors Rights Agreement imposes restrictions through September 3, 2026.

This agreement includes Eric Trump and Donald Trump Jr. themselves. The specific lockup periods for individual shareholders have been detailed by X account RisenFit.

Ripple Effects Hit Hut 8

The collapse spread to Hut 8, which owns 80% of American Bitcoin Corp. HUT shares dropped 12% on Tuesday, breaking a strong upward trend. The stock had nearly tripled in the previous six months as miners pivoted toward AI infrastructure projects.

Hut 8’s decline came despite the company benefiting from the broader shift in mining business models. The connection to ABTC proved too strong to ignore for investors.

American Bitcoin reported a swing to profitability in the third quarter. Net income reached $3.47 million while revenue climbed to $64.2 million. The company also added 3,000 Bitcoin to its reserves during the quarter, bringing total holdings above 4,000 BTC.

Trump emphasized the company’s operational strength in his statement. He cited mining costs at roughly 50% of Bitcoin’s spot price and a 56% gross margin in Q3. “I’m holding all my ABTC shares,” Trump added. “I’m 100% committed to leading the industry.”

ABTC is not the only Trump family crypto venture facing challenges. World Liberty Financial’s WLFI token has dropped 70% from its peak. The TRUMP and MELANIA meme coins have also seen sharp declines. Trump Media, which holds a Bitcoin treasury, has fallen about 75% year to date.

The company’s business remains closely tied to Bitcoin’s price movements. Bitcoin recently pulled back from a peak near $126,000 to lows below $80,000 in November. This volatility has triggered a repricing across crypto-exposed equities, particularly among miners and treasury companies.

ABTC stock closed Tuesday barely holding above $2 per share on the heaviest trading volume since its public listing.