The shares of American Bitcoin, traded on the Nasdaq, experienced a significant decline following the sale of shares from private placements that were unlocked. The company’s stocks plummeted by nearly 50% in early trading, closing the session with a 38.83% loss at $2.19. Eric Trump, one of the company’s founders, remarked that the volatility was anticipated and that he would retain his shares without selling.

Sales Pressure Mounts After Share Unlocking

American Bitcoin began trading on Nasdaq under the ticker ABTC after merging with Gryphon Digital Mining in September. On Tuesday, the lock-up period for shares issued ahead of the merger expired. According to Google Finance data, the stock opened at $3.58 but dropped to as low as $1.80 within just one hour. By the end of the day, it had settled at $2.19, marking a 38.83% loss. Eric Trump explained on his X account that this volatility was inevitable due to early investors being able to realize profits for the first time.

Eric Trump emphasized the unmatched fundamentals of the company, affirming his decision not to dispose of his holdings. Founded by Eric and Donald Trump Jr., American Bitcoin is notable for its mining and Bitcoin accumulation operations. Over the year, the company doubled its mining capacity and increased its revenue from $11.6 million to $64.2 million.

Strong Financial Performance Fails to Halt Decline

American Bitcoin’s CEO, Michael Ho, highlighted last month that the gross profit margin had improved by seven points on a quarterly basis, and operational growth was on track as planned. By mid-November, the company reported holding 4,090 BTC, part of which was used as collateral for purchasing miners.

Despite the strong performance metrics, shares have fallen by 76.5% from the peak of $9.31 seen in September. Analysts predict new share unlocks for American Bitcoin in 2026. Brian Dobson, a Clear Street analyst, advised investors to be cautious of these upcoming unlocks. This decline coincides with a general market weakness, as major players like Coinbase, Circle, and Gemini have also seen significant value losses over the past month, with decreases of 20%, 39%, and 47%, respectively.