Shares in American Bitcoin Corp, co-founded by Eric Trump, tumbled nearly 40% on December 2, 2025, following the expiration of a share lockup and a broader decline in cryptocurrency values. The rapid selloff triggered multiple trading halts and erased about $1 billion from the company's market value. Eric Trump attributed the volatility to early investors cashing in profits while reaffirming his commitment to the firm.
American Bitcoin Corp's stock, trading as ABTC on Nasdaq, closed at $2.39 on December 1, 2025, but plunged to $1.90 the next day, a drop of 38.8% in less than 30 minutes. The decline followed the unlocking of restricted shares from a pre-merger private placement, allowing early investors to sell. Trading volume surged to nearly 40 times the daily average, prompting repeated halts, according to Bloomberg data.
The nosedive coincided with a wider cryptocurrency market slump, dubbed a 'crypto winter' by observers. Bitcoin's price has fallen more than 30% since its October 6 peak of $126,272, reaching $92,133 and erasing $1 trillion in global crypto market value, per Deutsche Bank analysts. The asset hit a low of $85,468 on December 1 before a partial recovery.
Eric Trump, the company's co-founder and chief strategy officer, addressed the turmoil on X. "The sell-off was caused by investors exercising their option to cash in on their profits for the first time which is why we will see volatility," he wrote. He added, "I’m holding all my @ABTC shares - I’m 100% committed to leading the industry." Trump also highlighted the firm's strengths, stating its "fundamentals are virtually unmatched," with bitcoin mining at about 50% of spot price and a 56% gross margin in the third quarter.
American Bitcoin, formed earlier in 2025 from Hut 8 Corp, reported third-quarter revenue of $64.2 million and net income of $3.5 million. It holds over 3,000 bitcoins and claims to handle 2% of global supply. Last month, Eric Trump called the dip a "great buying opportunity," saying, "I have never been more bullish on the future of cryptocurrency."
The event reflects challenges for Trump family crypto ventures, including World Liberty Financial's token falling from 26 cents to 16 cents, contributing to a family fortune drop from $7.7 billion to $6.7 billion.
