American Bitcoin Corp. (ABTC), a Bitcoin mining and treasury firm based in the U.S. and co-founded by Eric Trump and Donald Trump Jr., experienced a staggering 50% decline in its shares on Tuesday. This downturn occurred even as Bitcoin surged past $91,000, along with gains for nearly every other crypto-related stock.
As reported by Nasdaq data, the trading volume skyrocketed to 55 million shares, compared to a daily average of 3 million, indicating significant selling pressure.
This decline is particularly noteworthy against the backdrop of Bitcoin’s strong performance on Tuesday, as it rebounded from a sharp drop to hover close to $92,000, subsequently lifting most crypto-related equities.
However, ABTC has not followed suit, remaining down 40%, while Hut 8 (HUT)—which holds an 80% stake in ABTC—is facing a 12% drop. HUT has been benefiting from Bitcoin miners transitioning to AI infrastructure, having nearly tripled in value over the past six months.
Market speculation regarding the dramatic share price drop focused on potential insider lockup selling. Nevertheless, SEC filings reveal a 180-day lockup preventing most historical ABTC holders from selling until March 3, 2026.
Furthermore, a separate 12-month Investors Rights Agreement imposes a standstill until September 3, 2026, which includes Eric Trump and Donald Trump Jr. A detailed list of lock-up periods by individual has been noted on the X account of RisenFit.
ABTC’s reverse merger with Gryphon concluded in September 2025, while shares traded as high as $14. With today’s decline, the stock is barely managing to stay above $2.
ABTC’s plummet is reminiscent of other Trump-affiliated crypto failures. World Liberty Financial’s WLFI token has dropped 70% from its peak, while both TRUMP and MELANIA meme coins have significantly declined. Additionally, Trump Media (DJT), which has amassed a considerable Bitcoin treasury, has seen its value decrease by approximately 75% year to date.
