The American Bitcoin price (American Bitcoin Corp, NASDAQ) has been steadily climbing in the past 24 hours, experiencing a volatile bounce after a significant drop, trading within a broad intraday range and stabilizing about halfway through following yesterday’s sell-off caused by the lock-up expiration.
Summary
- The American Bitcoin price plunged nearly 40% after pre-merger private placement shares were unlocked, prompting early investors to sell.
- Eric Trump noted the volatility was anticipated, described the fundamentals as “virtually unmatched,” and assured that he would not be selling his shares.
- Despite robust Q3 earnings and a treasury of 4,090 BTC, ABTC has decreased approximately 76.5% from its peak in September, amidst a broader downturn in crypto equities.
Traders observed a dramatic fall in the American Bitcoin price on Dec. 2. The Trump-family-backed miner faced substantial selling pressure as locked-up shares became available, resulting in the stock briefly losing nearly half of its value before closing nearly 40% down for the day.
However, by Dec. 4, the price fluctuated between 2.25 USD and 2.77 USD intraday, indicating aggressive trading dynamics and a short-term rebound following the previous day’s sell-off.
Eric Trump and American Bitcoin
ABTC, traded on Nasdaq, dropped from a closing price of 3.58 dollars to an intraday low of 1.80 dollars within the first hour on Dec. 2, before recovering slightly to end at 2.19 dollars, representing a 38.83% loss. This decline coincided with the unlocking of pre-merger private placement shares, which had been issued before American Bitcoin’s merger with Gryphon Digital Mining and its September listing.
“Today our pre-merger private placement shares unlocked — these early investors are now able to cash in on their profits for the first time, which is why we are witnessing volatility,” co-founder Eric Trump stated on X, attempting to frame the event as mechanical selling instead of a sudden drop in confidence. He emphasized that the company’s fundamentals are “virtually unmatched” and reiterated that he would retain his ownership stake, positioning himself as a long-term investor amidst the upheaval.
Strong quarter, growing bitcoin stack
The sell-off occurred just weeks after American Bitcoin announced what it labeled strong third-quarter results. Revenue surged to 64.2 million dollars from 11.6 million dollars a year prior, while net income rose to 3.5 million dollars compared to a loss of 0.6 million dollars in the same quarter of the previous year. “We more than doubled our mining capacity, more than doubled our revenue, and increased our gross margin by seven percentage points quarter-over-quarter,” CEO Michael Ho remarked, arguing for the rapid scaling of the business.
In conjunction with this growth, the company has been accumulating its own bitcoin reserves. As of November 13, American Bitcoin reported holding approximately 4,090 BTC in its treasury, encompassing both coins in custody and those allocated for miner purchases, thereby providing shareholders with direct exposure to the asset alongside the mining operations.
Shares under pressure, sector under strain
Despite the positive metrics, the stock has been on a downward trend for months. Since reaching a peak of 9.31 dollars in September, ABTC has declined around 76.5%, making it one of the more volatile publicly traded bitcoin proxies. The recent drop merely accelerated this trend, compressing a gradual re-evaluation into a single trading session.
The overall environment for crypto-linked equities has not been favorable. Coinbase is down 20% over the past month, USDC issuer Circle has dropped 39%, and Gemini has experienced a 47% decline, indicative of a wider downturn as digital asset markets remain sluggish. Looking ahead, Clear Street analyst Brian Dobson informed Bloomberg that additional equity unlocks for ABTC are planned for 2026 and advised investors to monitor these expirations closely, cautioning that further supply could exacerbate the strain on an already fragile stock.
