American Bitcoin, Backed by Trump, Plummets 40%, Causing Hut 8 to Slide 12%

Trump-Backed American Bitcoin Plunges Despite Crypto Rally

American Bitcoin Corp. (ABTC), the U.S.-focused bitcoin mining and treasury firm founded by Eric Trump and Donald Trump Jr., saw its shares plunge as much as 50% on Tuesday, marking another setback for Trump family crypto ventures. The decline came even as bitcoin surged above $91,000 and most other crypto-related stocks climbed.

Trading volume spiked to 55 million shares, well above the 3 million daily average, signaling significant selling pressure. While bitcoin recovered from a recent dip to nearly $92,000, ABTC remained down 40%, dragging Hut 8 (HUT)—which owns 80% of ABTC—down 12%. HUT had nearly tripled over the past six months, benefiting from miners pivoting into AI infrastructure.

Speculation initially focused on insider selling, but SEC filings indicate a 180-day lockup restricting most historical ABTC holders from selling until March 3, 2026, with a 12-month Investor Rights Agreement imposing a standstill through September 3, 2026 for Eric and Donald Trump Jr. Lockup details were shared on X by account RisenFit.

Responding to the sell-off, Eric Trump posted on X:
“Pre-merger private placement shares unlocked today — early investors can now cash in, causing volatility. Our fundamentals are strong: mining BTC at ~50% of spot with 56% gross margin in Q3, climbing the BTC ranks daily. I’m holding all my ABTC shares — fully committed to leading the industry.”

ABTC went public via a reverse merger with Gryphon Digital in September 2025, with shares then trading near $14. Following Tuesday’s sell-off, the stock sits just above $2.

The decline continues a trend of Trump-linked crypto disappointments. WLFI token is down 70% from its peak, TRUMP and MELANIA meme coins have collapsed, and Trump Media (DJT)—which holds a significant bitcoin treasury—has fallen about 75% year-to-date.