American Bitcoin Corp. (ABTC) experienced a dramatic market shock on Tuesday, December 2, 2025, with shares plunging by roughly 50% in under 30 minutes after a lockup period expired for early investors.
The sudden drop triggered multiple trading halts and marked one of the company’s most volatile trading sessions since its public debut.
Lockup Expiry Frees Shares From Pre-Merger Private Placement
The unlocked shares originated from a private placement executed before American Bitcoin merged with Gryphon Digital Mining. As the lockup lifted, traders braced for potential selling pressure, a common reaction when early investors gain the ability to liquidate their holdings.
The chart shows the collapse unfolding almost instantly as ABTC slid from above $4.00 into the low-$2.00 range on extreme volume. The move reflects a sharp liquidity imbalance, with selling overwhelming bid-side support before the stock attempted a modest rebound.
Eric Trump Reaffirms Commitment Amidst Volatility
Despite the turmoil, Eric Trump, who co-founded the mining firm alongside Donald Trump Jr., moved quickly to reassure shareholders. In a post on X, he stated he remains “100% committed to leading the industry” and confirmed he is holding all his personal shares.
His statement did little to slow the initial decline, but the stock later recovered part of its losses, finishing the session down 35% at $2.33.
Thanks @Coachjv_. 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… https://t.co/7h1Aqjt8iE
— Eric Trump (@EricTrump) December 2, 2025
Sell-Off Reflects Broader Retail Fear Around Lockup Events
Market analysts note that retail investors frequently react defensively to lockup expirations, fearing that insiders or early backers will rush to sell. This expectation alone can spark a chain reaction, even before significant selling actually occurs.
The sell-off coincided with a choppy crypto market session, though Bitcoin itself was trading above $91,000, signaling that ABTC’s collapse was driven primarily by company-specific pressure rather than sector-wide weakness.
Decline Extends Months Of Weakness For ABTC
American Bitcoin’s drop comes after a difficult stretch for the company. The firm, originally spun out of Hut 8, has already fallen more than 60% from its September high. The latest crash compounds concerns around its post-merger performance, investor confidence, and the firm’s ability to stabilize amid ongoing volatility.
The price action also mirrors struggles seen across other Trump-affiliated crypto ventures, including several meme coins and tokens tied to World Liberty Financial (WLFI), many of which have suffered steep declines.
A Volatile Session Highlights Investor Sensitivity
The chart reveals how quickly sentiment turned once the lockup expired. ABTC’s price collapsed in a waterfall pattern, followed by heavy-volume bids attempting to re-establish support around the $2.20–$2.40 zone.
For now, ABTC faces a critical test: whether it can rebuild market trust after one of the sharpest and fastest declines seen in a publicly traded crypto-mining firm.