American Bitcoin (ABTC) Shares Plunge ~40% After Lockup Expiry; Treasury Holds ~4,090 BTC
American Bitcoin (ABTC), the Nasdaq-listed bitcoin mining and accumulation company co-founded by Eric Trump and Donald Trump Jr., plunged about 40% on Dec. 2 after a tranche of pre-merger private-placement shares unlocked. ABTC fell intraday from $3.58 to as low as $1.80 and closed at $2.19, down 38.8%, leaving the stock roughly 76% below its September $9.31 peak. Management reiterated that underlying fundamentals remain strong: Q3 revenue rose to $64.2 million from $11.6 million year‑on‑year and the company reported a $3.5 million net profit versus a prior loss. American Bitcoin reported roughly 4,090 BTC in treasury as of Nov. 13 and has expanded mining capacity. Founder Eric Trump said on X the selloff was expected because early investors can now cash out and that he does not intend to sell his stake. Analysts warn that further scheduled share unlocks through 2026 could create ongoing selling pressure. The decline coincided with broader weakness in crypto-related equities (eg, Coinbase, Circle). Traders should monitor ABTC unlock schedules, on-chain BTC treasury movements and any changes to miner collateralization as near-term drivers of volatility and potential liquidity-driven price pressure.
Bearish
The immediate market impact is bearish. A large tranche of pre-merger shares unlocked and was available for sale, triggering a sharp intraday decline of ~40% and increasing free float — a classic supply shock that pressures share price. Management pointed to solid fundamentals (Q3 revenue growth, net profit, expanded mining capacity and ~4,090 BTC treasury), which may support longer-term valuation, but analysts note additional scheduled unlocks through 2026 that could sustain selling pressure. For traders, expect heightened short-term volatility driven by sell-side liquidity, potential downward price pressure on ABTC shares, and correlated weakness among crypto-related equities. Monitor unlock schedules, on-chain treasury movements (BTC flows in/out of custody), insider statements (eg, whether founders sell), and miner collateralization changes; these will determine whether the selloff is temporary or part of a prolonged downtrend. Overall: short-term bearish due to supply-driven selling; medium-to-long-term outlook depends on execution, BTC treasury management and whether future unlocks are absorbed without further heavy selling.