Trump-Backed Bitcoin Miner ABTC Crashes Despite Bitcoin Rally

American Bitcoin Corp. (ABTC), the U.S.-based bitcoin mining and treasury company founded by Eric Trump and Donald Trump Jr., saw its stock plunge by as much as 50% on Tuesday—even as bitcoin surged back above $91,000 and lifted most crypto-related equities. Nasdaq data showed trading volume exploding to 55 million shares, far above the average 3 million, signaling intense selling pressure and sparking widespread speculation across social media and crypto circles.

The sharp decline stood out because bitcoin had fully recovered from its brief 36-hour selloff, climbing near $92,000 and boosting nearly every major mining and blockchain-linked stock. Yet ABTC remained down around 40%, while Hut 8 (HUT)—which owns 80% of ABTC—fell 12%. Notably, HUT had nearly tripled in value over the prior six months thanks to miners shifting toward AI-focused infrastructure.

Much of the market chatter centered on possible insider selling, but SEC filings show most historical ABTC holders face a 180-day lockup that prevents sales until March 3, 2026. An additional 12-month Investors Rights Agreement imposes a standstill through September 3, 2026, impacting Eric Trump, Donald Trump Jr., and other major holders. These lockup timelines were widely circulated on X by the account RisenFit.

Addressing the volatility, Eric Trump posted on X that the sudden sell-off was tied to the unlocking of pre-merger private placement shares, allowing early investors to take profits for the first time. He emphasized ABTC’s strong fundamentals, citing Bitcoin mined at roughly 50% of spot price and a 56% gross margin in Q3, and reiterated his confidence by stating he is holding all of his shares.

ABTC, which went public via a reverse merger with Gryphon Digital in September 2025, had traded above $14 at its peak. Following Tuesday’s collapse, the stock is now hovering just above $2. The drop adds to a growing list of Trump-linked crypto setbacks, including World Liberty Financial’s WLFI token falling 70% from its peak and steep declines in TRUMP and MELANIA meme coins. Trump Media (DJT), which has accumulated a sizable bitcoin treasury, is also down around 75% year-to-date.