American Bitcoin Corp, the Trump-backed bitcoin miner trading under the ticker ABTC, has just delivered one of the most dramatic stock moves in the crypto-equity space this year. After a share lock-up expiry unleashed a wave of selling, American Bitcoin stock plunged almost 40% in a single session before finally stabilizing the next day.
Despite the panic, American Bitcoin steadied in subsequent trading, edging higher by nearly 9% as bargain hunters stepped in and some investors reassessed whether the sell-off had gone too far. The episode has put American Bitcoin at the center of market attention, not just because of the price action, but because of its high-profile backing from Eric Trump and Donald Trump Jr., and its role in the broader ecosystem of crypto mining stocks.
In this article, we will break down what happened to American Bitcoin during the lock-up expiry, why the stock plunged so sharply, what it means that it has now steadied, and how this fits into the wider turbulence hitting Trump-linked crypto ventures, bitcoin miners and digital assets overall. We will also look at the potential long-term narrative around American Bitcoin and discuss key things investors might want to watch next.
What Happened To American Bitcoin Stock?
The Near 40% Plunge After Lock-Up Expiry
On the day of the lock-up expiry, American Bitcoin shares fell by almost 40% as pre-merger and private placement investors were finally allowed to sell their holdings. Reuters reported that American Bitcoin dropped close to 40% on Tuesday’s session as these newly freed shares hit the market, triggering heavy selling pressure and sharp intraday volatility.
The stock briefly traded as low as around the high-$1 region after previously closing near the mid-$3 level, according to intraday data cited by several market outlets. Volumes exploded far beyond normal daily activity, and there were multiple trading halts as circuit breakers kicked in to manage the extreme price swings.
For many traders, the move in American Bitcoin looked like a classic post-lock-up sell-off, where early backers take the first chance to crystallize profits or cut risk. The fact that this happened while bitcoin prices and much of the crypto market were already under pressure only amplified the downside.
Why Share Lock-Ups Matter For New Listings
To understand why American Bitcoin reacted so violently, it helps to understand how share lock-ups work. When a company goes public, key insiders and early investors are typically restricted from selling their shares for a fixed period, usually 90 to 180 days. The idea is to prevent immediate dumping that could undermine market confidence.
American Bitcoin went public on Nasdaq in September 2025 via a reverse merger with Gryphon Digital Mining, positioning itself as a U.S.-focused bitcoin mining and treasury company majority-owned by Hut 8. As that initial lock-up period expired, a large block of previously restricted shares suddenly became sellable.
If a substantial number of those early holders decide to exit at once, it can create a flood of supply with insufficient demand to absorb it at prior prices. That appears to be exactly what hit American Bitcoin: a wall of selling, limited immediate buyers, and a rapid repricing of the stock.
Who Is American Bitcoin?
A Trump-Backed Bitcoin Mining And Treasury Play
American Bitcoin is not just another miner. It has gained outsized media attention because it is backed by members of the Trump family and is part of a broader network of Trump-linked crypto ventures. Eric Trump serves as co-founder and chief strategy officer, while Donald Trump Jr. holds a shareholder stake.
The company’s stated strategy is to operate a large-scale bitcoin mining operation while also acting as a bitcoin accumulation platform, holding mined BTC on its balance sheet and, at times, making opportunistic purchases in the market. This makes American Bitcoin highly sensitive not only to mining economics (energy costs, hash rate, difficulty) but also to bitcoin’s spot price and broader crypto sentiment.
As a majority-owned subsidiary of Hut 8 Corp, a well-known North American mining player, American Bitcoin also draws on existing infrastructure and operational expertise. That link has both benefits and risks: operational synergies on the upside, and shared investor sentiment shock on the downside, as seen when Hut 8 shares fell more than 13% in sympathy with American Bitcoin’s plunge.
From Reverse Merger To Nasdaq Listing
American Bitcoin’s path to public markets came through a reverse merger with Gryphon Digital Mining, a previously listed entity. This route allowed American Bitcoin to list relatively quickly on Nasdaq without going through a traditional IPO process.
Before the merger, American Bitcoin raised capital via a private placement that valued the company in the billions and gave early backers a meaningful stake. These private placement investors were among those subject to the lock-up period that just expired.
The company’s debut was volatile from the start. Shortly after listing, American Bitcoin’s share price spiked well above its reference levels before sliding below its initial price as the market struggled to agree on what the newly created ABTC stock was worth. That early pattern set the stage for the latest round of turbulence once more supply was unlocked.
Why American Bitcoin Steadied After The Crash
Company Insiders Say They Did Not Sell
Despite the near 40% slide, American Bitcoin did not continue to free-fall. On the following trading day, the stock steadied and rebounded, gaining around 8.9% in premarket and early trading as some investors stepped in to buy the dip.
A key factor in that stabilization was messaging from company leadership. American Bitcoin’s president, Matt Prusak, wrote on X (formerly Twitter) that the team had anticipated a “choppy” period as the unlocked shares “find new homes.”Reuters Hut 8 CEO and American Bitcoin executive chairman Asher Genoot also stated publicly that Hut 8, Eric Trump, Donald Trump Jr. and other founding partners did not participate in the unlock, emphasizing that insiders were holding their positions rather than rushing for the exits.
That message matters. When markets fear that insiders are secretly dumping, sentiment can spiral into panic. Clear statements that core insiders are still committed, combined with a belief among some traders that the sell-off was largely mechanical and driven by early financial investors, likely helped American Bitcoin find a floor.
Volatility, Trading Halts And Bargain Hunters
The lock-up expiry coincided with intense intraday volatility, including multiple trading halts under the market’s limit-up/limit-down rules as American Bitcoin share prices swung rapidly. Such trading halts can paradoxically deepen short-term panic by interrupting normal price discovery and leaving traders guessing where the stock will reopen.
However, once the initial wave of selling had passed and the market digested the news that insiders were not bailing, bargain hunters and speculative traders began stepping in. For some, American Bitcoin around the low-$2 level looked like a high-risk, high-reward way to gain exposure to a bitcoin miner with significant BTC holdings at a discount to prior valuations
In that sense, the stabilization of American Bitcoin does not necessarily signal that all the fundamental questions are resolved. Instead, it reflects a temporary balance between sellers from the lock-up and new buyers willing to take the other side of the trade.
Long-Term Considerations For American Bitcoin
For longer-term investors, the question is whether the recent plunge and subsequent stabilization represent an opportunity or a warning sign. A few key factors stand out:
American Bitcoin’s core business is bitcoin mining and accumulation, a model that has seen both big winners and painful busts in previous cycles. Its performance will be heavily tied to hash-rate efficiency, electricity costs, regulatory conditions and the bitcoin price over multi-year horizons.
The company reportedly holds a significant stack of BTC on its balance sheet, which can serve as both an asset and a source of risk. In bull markets, this treasury strategy can magnify upside. In downturns, it can intensify drawdowns in ABTC stock.
American Bitcoin is majority-owned by Hut 8, which itself is a large, established miner. That backing can provide operational strength, but it also means that investors are indirectly exposed to the broader Hut 8 strategy and financing structure.
The Trump family association brings visibility and potentially easier access to capital – but also introduces political and reputational risk, as shifts in public perception or regulatory focus around Trump-linked enterprises can affect sentiment toward American Bitcoin.
Ultimately, whether American Bitcoin’s post-lock-up stabilization is the start of a constructive base or just a pause in a deeper downtrend will depend on how the company executes operationally, how the macro backdrop for digital assets evolves, and whether investors maintain faith in its “bitcoin-per-share growth” strategy.
Conclusion
American Bitcoin’s near 40% plunge after its share lock-up expiry, followed by a partial rebound as the dust settled, has turned the company into one of the most closely watched crypto mining stocks on the market. The episode highlights how structural events like lock-up expiries can drive dramatic short-term moves, especially when they interact with a fragile macro backdrop and intense media focus.
The stabilization of American Bitcoin does not erase the risks. ABTC is still down sharply from its post-listing peaks and remains heavily exposed to bitcoin’s price, regulatory shifts and sentiment toward Trump-linked ventures.
At the same time, the company retains significant assets in the form of its mining operations, BTC holdings, and the backing of a major industry player in Hut 8. For investors who understand the risks and accept the volatility, American Bitcoin will likely continue to be a high-profile, high-beta proxy for the intersection of U.S. politics, bitcoin mining and speculative growth investing.
As always, anyone considering exposure to American Bitcoin should do their own research, understand the specific risks of ABTC stock, and consider how such a volatile asset fits within a broader, diversified portfolio.
FAQs
Q. Why did American Bitcoin stock plunge nearly 40%?
American Bitcoin stock plunged close to 40% primarily because a share lock-up expiry allowed pre-merger and private placement investors to sell their holdings for the first time. When a large number of these early backers chose to exit around the same time, it created a surge of supply that overwhelmed demand, driving ABTC sharply lower in a single session. This was compounded by a weak backdrop for crypto assets, high volatility, and multiple trading halts that intensified the downward move.
Q. What does it mean that American Bitcoin has ‘steadied’?
When analysts say that American Bitcoin has “steadied,” they mean that after the initial plunge, the stock stopped falling and even rebounded modestly, gaining around 8–9% in the next trading session.Reuters+1 This stabilization suggests that selling pressure from the lock-up has at least temporarily eased, and that new buyers have stepped in at lower price levels. It does not guarantee that volatility is over, but it indicates that the market has found a tentative equilibrium where supply and demand are more balanced.
Q. Did Eric Trump and Donald Trump Jr. sell their American Bitcoin shares?
According to public statements from company leadership, including Hut 8 CEO and American Bitcoin’s executive chairman Asher Genoot, neither Hut 8 nor Eric Trump nor Donald Trump Jr. sold shares during the lock-up expiry.Reuters+1 They have emphasized that founding partners continue to hold their stakes, framing the sell-off as primarily driven by early financial investors from the private placement rather than by core insiders abandoning the company.
Q. How is American Bitcoin different from other bitcoin miners?
It is also unique in its high-profile association with the Trump family, which brings additional media attention and political sensitivity compared with many other miners. These factors make American Bitcoin more exposed to both bitcoin’s price and to shifts in sentiment around Trump-linked crypto ventures than a typical mining stock.
Q. Is American Bitcoin a good long-term investment?
Whether American Bitcoin is a good long-term investment depends on an individual investor’s risk tolerance, time horizon and view on bitcoin and crypto regulation. American Bitcoin offers leveraged exposure to the bitcoin price through both mining revenues and BTC holdings, which can be attractive in bull markets but painful during drawdowns. The company also carries reputational and political risk due to its Trump linkage, and it has already experienced extreme volatility, including the recent near 40% plunge. For cautious investors, such volatility may be too great, while more aggressive traders may view ABTC as a speculative vehicle for capturing upside if bitcoin and crypto sentiment recover.
