Key Highlights
- American Bitcoin Corp crashed over 50% in minutes, triggering multiple trading halts amid massive volume.
- Eric Trump said newly unlocked pre-merger shares caused volatility, denying insider selling.
- The drop adds to steep losses across Trump-linked crypto ventures, including WLFI, DJT, and ALT5.
American Bitcoin Corp. (ABTC), the cryptocurrency miner tied to the Trump family, endured a bruising trading day on Tuesday after its shares were cut in half within minutes.
The sudden rout unfolded during a period of heightened volatility in digital assets and revived questions around the stability of Trump-affiliated crypto projects.
A violent move in a shaky market
Bitcoin’s (BTC) sharp retreat over the past several weeks has already cooled enthusiasm across speculative corners of the crypto ecosystem. The token has fallen more than 30% from its early-October high, a slide driven by shifting macroeconomic conditions and a broader pullback from risk assets.
That pressure set the backdrop for ABTC’s latest decline. Despite Bitcoin briefly regaining strength on Tuesday, rallying back above $91,000 after nearly $1 billion in leveraged positions were wiped out a day earlier, the recovery wasn’t enough to lift every crypto-exposed name. ABTC was the day’s stark exception.
Trading halts and unusual volumes
The stock fell as much as 51%, triggering several automatic trading halts. Nasdaq data showed an extraordinary 55 million shares traded during the session, compared with an average of around 3 million. The spike in activity suggested heavy selling by early investors or funds adjusting exposure amid market turbulence.
The slump also pulled down Hut 8, ABTC’s majority owner, by 12%. The miner had previously benefited from pivoting part of its business toward AI infrastructure — a move that had nearly tripled the stock over six months, but the day’s slide erased a meaningful portion of those gains.
From post-merger highs to single-digit struggle
ABTC entered public markets through a reverse merger with Gryphon Digital in September 2025. At one point, the shares traded near $14, lifted by optimism around its mining economics and its positioning as a U.S.-focused operator.
That optimism has since faded. With Tuesday’s collapse, the stock is now hovering just above $2, down more than 78% from its September peak.
The company reported $3.5 million in net income on $64.2 million in third-quarter revenue last month, but deteriorating market conditions have overshadowed those results.
Speculation over lockups and Eric Trump’s response
The severity of the decline quickly ignited theories on social platforms about possible insider activity. However, regulatory filings indicate that most historical holders remain restricted by a 180-day lockup that extends until March 3, 2026.
A separate investor rights agreement imposes a standstill for major insiders, including Eric Trump and Donald Trump Jr., through September 3, 2026.
What changed on Tuesday was the status of pre-merger private placement shares, which became eligible for trading.
That clarification came directly from Eric Trump, who addressed the market action on X, “Today our pre-merger private placement shares unlocked — these early investors are freely available to cash in on their profits for the first time which is why we will see volatility.”
“Our fundamentals are virtually unmatched and our differentiator: mining BTC at ~50% of spot with 56% gross margin in Q3 and climbing the BTC ranks daily. I’m holding all my ABTC shares — I’m 100% committed to leading the industry.”
Despite the statement, selling pressure persisted through the afternoon.
A pattern across Trump-connected crypto projects
ABTC’s collapse adds to a string of weak performances among crypto ventures linked to members of the Trump family:
- World Liberty Financial’s WLFI token is down more than 70% from its peak.
- ALT5 Sigma Corp., which holds WLFI tokens, has fallen more than 80% from its record high.
- TRUMP and MELANIA meme coins have also endured deep declines.
- Trump Media (DJT), which holds a large Bitcoin treasury, has dropped about 75% this year.
The broader picture suggests that appetite for politically linked digital assets has cooled sharply, even as some parts of the crypto market attempt to stabilize.
What the collapse may signal
For ABTC, the immediate challenge will be convincing investors that Tuesday’s plunge reflects a one-off liquidity event rather than a deeper structural issue. With Bitcoin attempting to claw back recent losses and sentiment still fragile, the company faces an uphill path to restoring confidence.
The episode also offers a reminder: in a market as volatile as crypto, even high-profile backing provides no guarantee against sudden and severe reversals.
Also Read: Bitcoin Slides to $85K as Asian Stocks Shake Global Markets
