Shares of American Bitcoin Corp (ABTC) experienced a sharp decline, falling nearly 40% after a lockup period for early investors ended, triggering a wave of selling. Despite a volatile rebound in the following days, the stock remains significantly down from its recent peak, reflecting broader pressure on cryptocurrency-related equities.

On December 2, the Nasdaq-listed stock plunged from its previous close of $3.58 to an intraday low of $1.80 within the first hour of trading. It recovered slightly to finish the day at $2.19, marking a 38.83% loss. The sell-off coincided directly with the expiration of a lockup on pre-merger private placement shares, allowing early investors to sell their holdings for the first time since the company’s merger with Gryphon Digital Mining and its public listing in September.

Eric Trump Addresses Market Volatility

Co-founder Eric Trump addressed the sharp drop on X, framing the event as expected volatility rather than a collapse in market confidence. He explained that the unlocked shares allowed early investors to “cash in on their profits,” leading to mechanical selling pressure. Trump added that he believes the company’s fundamentals are “virtually unmatched” and affirmed that he is not selling his own stake, positioning himself as a long-term holder.

Strong Fundamentals Amid Stock Pressure

The stock’s dramatic fall contrasts with the company’s recently reported strong third-quarter results. American Bitcoin announced that its revenue jumped to $64.2 million, a substantial increase from $11.6 million during the same period last year. The company also posted a net income of $3.5 million, compared to a $0.6 million loss a year earlier.

CEO Michael Ho stated that the company had “more than doubled our mining capacity, more than doubled revenue, and grew gross margin by seven percentage points quarter-over-quarter.” In addition to its operational growth, American Bitcoin has been building a significant Bitcoin reserve. As of November 13, its treasury held approximately 4,090 BTC, including coins in custody and those pledged for miner purchases.

A Sector-Wide Strain on Crypto Stocks

Despite these positive metrics, ABTC stock has been under pressure for months. Since reaching a peak of $9.31 in September, its value has fallen by about 76.5%. This downward trend is not isolated, as other publicly traded crypto-linked companies have also struggled. Over the past month, Coinbase stock has declined by 20%, Circle by 39%, and Gemini by 47%, indicating a wider slump in the sector.

Looking ahead, Clear Street analyst Brian Dobson noted that further equity unlocks for ABTC are scheduled for 2026. He advised investors to monitor these dates closely, warning that additional share supply could exert more pressure on the stock.