The stock of American Bitcoin (ABTC), the mining venture born from the brains of Eric and Donald Trump Jr., took a nosedive faster than a lead balloon in the first hour of trading on December 2nd. It dropped nearly 50%, plummeting from $3.58 to a pitiful $1.80. Not exactly the “success story” they were hoping for.
ABTC ended the day in a sorry state, down 38.83%, settling at $2.19. However, the resilient (or perhaps delusional) investors managed to push it up by 10.96% in after-hours trading on December 3rd. It’s like watching someone trip and then awkwardly stumble back up – the effort is there, but the damage has already been done.
American Bitcoin crashes – but why?
This dramatic plunge wasn’t due to some juicy market gossip or the latest crypto doomsday prophecy. No, it was the expiration of a share lockup period that allowed a flood of previously restricted stock to flood the market. The very moment that release button was hit, the market saw a tidal wave of stock, making the price drop faster than a hot potato.
These lockup agreements are as common as a rainy day after a public listing, typically following a merger with Gryphon Digital Mining. They prevent insiders and early investors from dumping their shares, but when that lockup expires… well, let’s just say it’s like a dam breaking. Floodgates open, and the market drowns in excess supply.
The result? A dramatic and immediate 50% nosedive in the stock price within the first hour. Talk about volatility, huh?
Eric Trump defends the selloff
Eric Trump, never one to shy away from a microphone, took to X (formerly Twitter, because why not?) to explain that the selloff was an expected event, thanks to the release of those pre-merger private placement shares. Who could’ve guessed that would cause chaos in the market? Oh right, anyone who’s ever studied stock trading.
But fear not, dear reader. Eric made sure to let everyone know he wasn’t selling his own shares, assuring the public that this was just a short-term shock. The long-term vision, he reassured us, is still as bold as ever. And why not? The guy’s got conviction, even if it’s being tested by a stock price that looks like a rollercoaster after too many loop-de-loops.
What Eric conveniently ignored, however, was how this dramatic fall stands in stark contrast to American Bitcoin’s so-called “robust” financial health. The company has been riding the volatility wave like a pro, but let’s not get ahead of ourselves.
Trump-backed firms’ Bitcoin holdings and more
Let’s pause and reflect on the silver lining here. American Bitcoin did report some solid results in the third quarter. Revenue surged to a whopping $64.2 million-up from a measly $11.6 million the year before. A positive net income turnaround also saw them posting a modest profit of $3.5 million. All hail the power of mining and Bitcoin!
They’re also holding a treasure chest of approximately 4,090 BTC. Yes, you read that right. Over 4,000 Bitcoins, as of mid-November. Talk about stacking up, eh? All in the name of increasing their Bitcoin exposure while expanding production. But don’t get too comfortable with the numbers-because as we know, the crypto world can flip faster than a pancake on a hot griddle.
Of course, the selloff wasn’t just about the company’s operations. It was also about the stock’s rocky history. After its Nasdaq debut, the stock shot up to $9.31 in September, following a $170 million investment. But like all good things, it soon entered a slow, agonizing decline, dropping nearly 76.5% from its peak. Who knew Bitcoin could be this volatile, right?
Trump-backed American Bitcoin had also seen a surge
This whole saga started with a bang, as American Bitcoin surged on the back of Dominari Holdings’ hefty investment and its merger-driven journey into the public markets. The Trump family, apparently eager to expand their crypto empire, rode this wave with gusto. It’s a story of ambition, big moves, and… well, big crashes.
Final thoughts
- Despite impressive revenue growth and rising profits, ABTC was no match for the supply shock.
- Dominari’s investment and the Gryphon merger gave ABTC momentum, but it also exposed it to the harsh realities of public-market trading.
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2025-12-03 21:22