Why American Bitcoin Shares Plunged ~40% After Lock-Up Expiry — December 2025 Breakdown
American Bitcoin shares fell ~40% as pre-merger lock-up expired. Heavy selling by early investors erased ~$1B — here’s what went wrong.
Raja Awais Ali
12/3/20251 min read
Why Shares of American Bitcoin Plunged ~40% — What Really Happened
American Bitcoin Corp. (ABTC), a bitcoin-mining company backed by members of President Donald Trump’s family, saw its shares tumble roughly 40% on December 2, 2025, immediately after the expiry of a long-standing share lock-up period. The lock-up had prevented early investors from selling pre-merger shares. Once the restriction lifted, many moved quickly to offload, triggering a sharp sell-off.
The following day, as pre-merger shares began trading freely, the stock briefly rebounded about 9% to $2.39. American Bitcoin — a majority-owned unit of Hut 8 Corp. — went public in September 2025 through a reverse merger with Gryphon Digital Mining. Company disclosures indicate that co-founder and chief strategy officer Eric Trump and shareholder Donald Trump Jr. did not sell any of their holdings; the heavy selling was carried out by other pre-merger investors.
This sharp drop erased nearly $1 billion from the company’s market value, highlighting how vulnerable crypto-linked stocks can be when investor sentiment shifts. Analysts note that the timing of the lock-up expiry, combined with broader skepticism and volatility in cryptocurrency markets, amplified the sell pressure. When large numbers of shares hit the market simultaneously, even modest selling can trigger cascading declines, particularly in young and speculative firms like American Bitcoin.
The episode serves as a reminder for investors: in crypto-linked ventures, fundamentals alone do not dictate outcomes. Lock-up schedules, investor behavior, and overall market sentiment play an equally critical role.
Looking ahead, the near-term recovery for American Bitcoin depends on the broader trajectory of cryptocurrency markets, including Bitcoin’s own price stability, and whether early shareholders stabilize their holdings. If confidence returns, the stock may regain some value; if not, volatility is likely to persist.