American Bitcoin Stock Tries to Recover After 40% Crash

American Bitcoin Corp. (ABTC) is trying to steady itself after a rough start to the week. The Bitcoin mining company, backed by the Trump family, saw its stock tank nearly 40% on Dec. 2 after a large batch of previously locked-up shares became available to sell.

The selloff hit hard and fast. ABTC opened the day under heavy pressure and quickly lost almost half its value in the first hour of trading. The stock fell from its previous close of $3.58 to a low of $1.80, before clawing back some ground to end the session at $2.19 — still a steep 38.83% drop.

The timing wasn’t a coincidence. The plunge lined up with the end of the lockup on pre-merger private-placement shares that were issued before ABTC completed its merger with Gryphon Digital Mining and went public in September. Once early investors were free to unload their shares, the market was hit with a sudden surge of supply.

Co-founder Eric Trump tried to calm investors on X, saying the selloff was expected because the shares were unlocking. He stressed that the event was mechanical rather than a sign the company was falling apart. Trump also said he isn’t selling his own stake and argued that the company’s fundamentals are “virtually unmatched.”

By Dec. 4, trading looked a bit more balanced. ABTC moved between $2.25 and $2.77 throughout the day, suggesting traders were hunting for a new short-term range after the sharp drop.

The crash comes only weeks after American Bitcoin reported what it called a strong third quarter. Revenue jumped to $64.2 million, up from $11.6 million last year, and net income rose to $3.5 million, compared with a $0.6 million loss a year earlier. CEO Michael Ho said the company more than doubled its mining capacity, doubled revenue, and improved its gross margin.

The miner is also building a growing Bitcoin reserve. As of Nov. 13, ABTC held about 4,090 BTC in custody and pledged coins for mining equipment — giving shareholders exposure to both the company and Bitcoin itself.

Still, the stock has been sliding for months. After reaching $9.31 in September, ABTC has lost around 76.5% of its value. It’s now one of the more volatile Bitcoin-linked stocks on the market.

The broader crypto-stock sector hasn’t helped either. Coinbase has dropped 20% over the past month, Circle is down 39%, and Gemini has fallen 47%.

Looking ahead, Clear Street analyst Brian Dobson told Bloomberg that more ABTC share unlocks are scheduled for 2026. He warned that additional supply could add pressure to a stock that’s already been struggling.

For now, investors are watching to see if American Bitcoin can stabilize — or if more rough days are ahead.