American Bitcoin Corp., the crypto-mining company co-founded by Eric Trump, suffered a sharp and fast decline on Tuesday, losing more than half its value within minutes of the opening bell. The stock ultimately closed at $2.19, down 39% for the day, as a wave of previously locked-up shares entered the market. The selloff adds to a growing list of Trump-linked crypto projects that have fallen much harder than the broader market’s 25% pullback in recent months, leaving many retail investors with heavy losses.
American Bitcoin Shares Sink After Lockup Expiry
The downturn began almost immediately after trading opened. Shares were already down 33% by 9:31 a.m., and the slide deepened to more than 50% by 9:56 a.m. The volatility triggered several trading halts throughout the morning and afternoon, as markets tried to absorb the sudden surge in available shares.
The selloff followed the expiration of a lockup tied to a private placement completed before the company merged with Gryphon Digital Mining. Once those restricted shares became eligible for trading, early investors rushed to take profits, a typical pattern for newly public companies navigating their first lockup expiry.
Eric Trump acknowledged the turbulence in a post on X, explaining that the unlocked shares created a “natural moment” for long-term backers to exit or reduce their positions. He stressed that the company’s operations remain strong, pointing to a 56% gross margin in the third quarter and claiming American Bitcoin mines BTC at roughly half the spot price. Trump added that he still holds all his shares and remains committed to the sector.
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
Trump-Associated Crypto Projects Struggle
The difficulties extend far beyond American Bitcoin. Several projects linked to the Trump family have recorded steep losses, falling well below major benchmarks such as Bitcoin.
World Liberty Financial’s WLFI token, launched by Donald Trump and his sons earlier this year, is down 51% from its early-September high. Alt5 Sigma, a firm heavily promoted by Trump’s sons, has collapsed about 75% and remains under legal pressure following leadership changes and a criminal investigation in Rwanda.
Trump-themed memecoins have also cratered. Tokens referencing Donald Trump and Melania Trump have plunged roughly 90% and 99% from their January peaks, erasing more than $1 billion in combined value since October. American Bitcoin, even before Tuesday’s plunge, was already 75% below its highs.
Why the Selloff Hit So Hard
Market analysts say the lockup expiry played a major role in Tuesday’s nosedive. Newly released shares often generate selling pressure as early backers cash out, and retail traders typically brace for sharp swings during these events. American Bitcoin’s stock had already been weakening, down 55% over the past month and 61% over the previous six months.
Despite the stock’s struggles, the company has posted strong financials. Revenue jumped to $64.2 million in the third quarter, compared with $11.6 million a year earlier. American Bitcoin also reported a $3.5 million profit and disclosed holdings of more than 4,090 BTC as of mid-November, positioning itself as one of the larger public miners by treasury size.
Crypto Market Context
Bitcoin itself saw a rebound on the same day, rising about 6% and climbing back above $90,000 following a week of declines. But Trump-connected projects have not shared in that recovery. Analysts say the so-called “Trump premium,” once seen as a unique advantage tied to the administration’s pro-crypto stance, has mostly evaporated.
Sentiment shifted after October’s surprise tariffs on China and renewed scrutiny surrounding the safety of American Bitcoin’s mining equipment. For many smaller investors who bought near the highs, the downturn has been devastating. One student in Vancouver reported a 40% drop in their overall crypto portfolio by mid-November, a story echoed across online forums.
Political and Legal Pressure Intensifies
Tuesday’s market turbulence comes against the backdrop of fresh political scrutiny. Democrats on the House Judiciary Committee released a report accusing the Trump administration of shaping federal policy to benefit family crypto businesses. The report claimed that token sales in early 2025 generated around $800 million and estimated the family’s total crypto exposure could reach $11.6 billion. It also highlighted foreign influence concerns, including a $75 million investment linked to entrepreneur Justin Sun.
Alt5 Sigma is facing additional complications, including senior departures and the criminal probe in Rwanda.
Eric Trump and representatives for World Liberty Financial did not respond to requests for comment. Despite the losses, the Trump family remains significantly ahead overall, according to the Bloomberg Billionaires Index, which shows they still have substantial profits from earlier gains.
Market analysts caution that the crypto sector has a long history of dramatic cycles and while downturns can be severe, past slumps have often been followed by recoveries. For now, though, Trump-linked ventures are facing some of their toughest headwinds yet.
Lockup Expiry Triggers Selloff
End of the shareholder lockup period often sparks selling pressure, as retail traders anticipate early backers cashing out. Experts point out this dynamic creates short-term volatility in newly public companies. American Bitcoin’s case fits this pattern, with shares down 55% over the past month and 61% in six months.
Despite the tumble, the company reported solid Q3 results, with revenue jumping to $64.2 million from $11.6 million a year earlier. Net income shifted to a $3.5 million profit. The firm holds over 4,090 BTC as of mid-November, boosting its treasury while expanding mining capacity.
Broader Crypto Market Context
Bitcoin itself rose about 6% on the same day, climbing back above $90,000 after prior selloffs. However, Trump-associated tokens continue to lag, erasing what some called a “Trump premium.” Policies under the Trump administration, including stablecoin legislation, initially supported these ventures.
Investor sentiment shifted after October tariffs on China and other issues, like security probes into American Bitcoin’s mining equipment. Retail holders who bought near peaks now face heavy losses, with one Vancouver student reporting a 40% portfolio drop by mid-November.
Also Read: Slower Than Expected: Australia’s Economy Delivers Mixed Signals as GDP Growth Lags Forecasts
Political and Legal Scrutiny
Democrats on the House Judiciary Committee issued a report accusing the Trump administration of favoring family crypto businesses, citing $800 million from early 2025 token sales. They estimate family holdings could total $11.6 billion, raising foreign influence concerns tied to investments like $75 million from Justin Sun. Alt5 Sigma deals with executive exits and a criminal probe in Rwanda.
Eric Trump and World Liberty Financial did not immediately respond to comment requests. The family retains substantial profits per the Bloomberg Billionaires Index, even after losses. Market watchers note crypto’s history of volatility, with past drops followed by recoveries
