American Bitcoin saw a steep stock drop on Tuesday as newly unlocked pre-merger shares entered the market and widened selling pressure. The stock fell almost 50% in the first hour of trading and continued to shift throughout the session. It hit an early low of $1.80 after closing at $3.58 the previous day. It later ended the day at $2.19, marking a 38.83% fall. The company linked the move to the first opportunity for early private investors to take profits.
Eric Trump said early shareholders gained their first chance to sell due to the unlock and noted that volatility was expected from the event. He explained the update on X and added that he had no plans to sell his own shares. He also said American Bitcoin’s fundamentals remained “virtually unmatched,” referring to the company’s recent performance.
The firm merged with Gryphon Digital Mining and began trading on Nasdaq in September. Early momentum drove the stock to a peak of $9.31 shortly after the listing, yet the gains faded over time. ABTC has since dropped more than 78% from that high. The latest slide added new pressure to a stock already struggling through a weak digital asset market.
American Bitcoin reported strong third-quarter results last month. Revenue rose to $64.2 million from $11.6 million last year. Net income reached $3.5 million after recording a $0.6 million loss in the prior year. CEO Michael Ho said the company doubled mining capacity and expanded revenue along with an improved gross margin.
Eric Trump and Donald Trump Jr. helped launch the firm earlier this year. Eric holds the role of co-founder and chief strategy officer. Donald Trump Jr. remains listed as an investor. Their involvement gave the company greater visibility due to their national profile.
Even so, insider sales did not contribute to the decline. SEC filings show the Trump sons and other key insiders cannot sell shares until at least March 2026. This restriction removed speculation about insider dumping and directed attention toward early private investors who gained liquidity on Tuesday.
The company also increased its bitcoin reserve. As of November 13, it held about 4,090 BTC across its treasury balances. The total includes coins stored in custody or pledged for miner purchases. The growing reserve has become a central part of the company’s long-term strategy.
Analysts at Deutsche Bank linked the broader crypto downturn to a shift among institutional holders. They pointed to long-term investors taking profits and macro pressure from a more hawkish Federal Reserve. They added that delays in crypto regulation created further uncertainty.
The analysts said these factors tested Bitcoin’s role in investment portfolios and raised new questions about its short-term direction. Could the current weakness be a temporary setback or a longer phase of adjustment?
Crypto-linked equities have moved in the same direction. Coinbase dropped 20% in the past month. Circle declined 39% in the same period. Gemini also fell 47% last month. These moves created a challenging backdrop for American Bitcoin.
Clear Street analyst Brian Dobson said more ABTC share unlocks are scheduled in 2026. He advised investors to watch the timeline carefully as the next waves of liquidity approach. He also said these future unlocks could influence market behavior when they arrive.
Also Read: Trump Sons’ American Bitcoin Set to Trade on NASDAQ from September 2025
American Bitcoin’s sharp stock decline followed the release of pre-merger shares, which opened the door for early investors to sell. The company posted strong quarterly growth, expanded its bitcoin reserve, and maintained insider sale restrictions. Investors may need to watch future unlock timelines closely for additional market shifts.