Eric Trump's American Bitcoin Corp. stock dropped over 50% after shareholder lockup expiration triggered a sell-off on December 2, 2025, despite Bitcoin prices rebounding.
The stock plunge highlights risks associated with crypto equities tied to prominent figures amid volatile market conditions.
American Bitcoin Corp's stock dropped sharply due to the expiration of insider lockups. This impacted shares significantly. Founded by Eric Trump, the company initially spun out from a major Canadian Bitcoin miner. Market observers were surprised by the swift decline.
As Bitcoin rebounds strongly over $91,000, ABTC’s stock price has significantly decoupled from Bitcoin’s price trend.
American Bitcoin, co-founded by Eric Trump, saw shares fall over 50% following the lockup expiry. Many insiders, including Trump himself, were cleared to sell shares. The drop contrasted with Bitcoin's rising market value, highlighting potential investor concerns.
Insider Lockup Expiry Leads to Significant Stock Drop
Despite Bitcoin's sharp ascent, American Bitcoin's linked equities faced a disparate reaction, with severe losses following the lockup expiry. This situation prompted interest regarding the stock's detachment from Bitcoin's success, showcasing unique market dynamics.
Market analysts observe that such lockup expiries often lead to high volatility. Historically, insider sales can trigger significant price adjustments, affecting investor confidence. The depth of sell-off suggests underlying risks associated with crypto-linked stocks. As a co-founder of American Bitcoin Corp., Eric Trump remarked, "As Bitcoin rebounds strongly over $91,000, ABTC’s stock price has significantly decoupled from Bitcoin’s price trend."
Severe Losses Despite Bitcoin's Rising Value
Similar stock plunges have been noted in past lockup expirations, showing patterns of volatility particularly within the crypto sector. The event aligns with previous trends, where insider selling prompts rapid market reactions.
Experts note that crypto-linked equities frequently experience intensified fluctuations post-insider lockup. Historical precedents indicate potential rebounds, yet caution remains warranted. This episode reiterates the market-sensitive nature of such stocks.