American Bitcoin”s stock experienced a dramatic decline of over 50% within the first hour of trading following a lock-up expiration. This significant drop eliminated previous gains and indicates increasing stress within the cryptocurrency market.
The company, co-founded by Eric Trump, is listed on the Nasdaq under the ticker symbol ABTC. The stock”s value plunged as investors reacted to the news, resulting in several trading interruptions. The shares fell to an intraday low of $1.75, marking a 45% decrease at one point.
As of this writing, the stock is down more than 38%. The sell-off began on December 2, 2025, coinciding with the end of a shareholder lock-up period, which allowed for the trading of previously restricted shares. These shares originated from a private placement prior to American Bitcoin”s merger with Gryphon Digital Mining Inc., which amplified selling pressure in the market.
The stock”s decline is particularly notable amid a broader downturn in the cryptocurrency landscape, where Bitcoin has retraced from its recent highs. The overall bearish sentiment has heightened the company”s losses, making the situation even more critical.
Market conditions were already fragile ahead of this event. Just a day prior, nearly $1 billion in leveraged cryptocurrency positions were liquidated, and Bitcoin”s price had plummeted to the mid-$85,000s. While no single headline sparked the sell-off, the market was already vulnerable.
The decline in American Bitcoin”s stock also triggered several trading halts, a standard protocol designed to manage excessive volatility. Over the previous month, shares had already decreased by 55.49%, and the decline extended to 61% over the last six months, highlighting a notable lack of sustained investor confidence.
Other cryptocurrency-related ventures associated with the Trump family have similarly faced severe losses in late 2025, suggesting a wider recalibration of political and crypto-adjacent assets. The combination of technical selling due to the lock-up expiration and the overall market weakness proved to be a catastrophic mix.
This event serves as a stark reminder of the highly leveraged nature of crypto-related equities, which often magnify movements in the underlying assets. The steep drop raises concerns among investors regarding the future trajectory of the cryptocurrency market.
The ongoing fluctuations in Bitcoin”s price have a direct correlation with the profitability of mining companies like American Bitcoin. Therefore, the significant decline in stock value is a cautionary tale about the inherent risks of holding crypto-treasury stocks, which are subject to both equity and digital asset market volatility.
Market observers are now closely monitoring the stock for signs of a potential floor, as the repercussions may extend to the sentiment surrounding other publicly traded cryptocurrency firms. This incident underscores the vulnerabilities inherent in the business models of such companies.
