American Bitcoin Stock Plummets as Lockup Ends
American Bitcoin Stock (NASDAQ: ABTC) plummeted more than 40% on December 2, 2025, following the expiration of its lock-up period, forcing multiple trading halts and triggering a massive selloff by early investors seeking to cash in on their positions.
American Bitcoin Market Meltdown: The Numbers
On the fateful trading day, American Bitcoin shares crashed over 50% in less than 30 minutes before circuit breakers halted trading multiple times. The stock ultimately closed down approximately 40% at $2.33 per share, with extraordinary trading volume reaching 55 million shares—nearly 20 times the typical daily average. This represents an 84% decline from the stock’s September 2025 Nasdaq debut price of $14 per share.
The sharp collapse created a stark contrast with Bitcoin’s own performance that day. While ABTC was in freefall, Bitcoin itself rallied 7.8% in 24-hour trading to climb above $91,000. This divergence revealed the core issue: the crash wasn’t driven by Bitcoin market weakness, but rather by the expiration of share lock-up agreements preventing early shareholders from selling.
Understanding the Lock-Up Expiration
Lock-up periods typically restrict insiders and early investors from selling shares immediately after a company goes public. For American Bitcoin, which completed its Nasdaq listing in September 2025 through a merger with Gryphon Digital Mining, early shareholders—including executives and the Trump family—had been unable to liquidate positions for months.
According to SEC filings, most ABTC shareholders faced a 180-day lock-up period, with restrictions set to expire on March 3, 2026. However, certain pre-merger private placement investors had different agreements with earlier expiration dates. When December 2 arrived, these shareholders flooded the market with sell orders.
Eric Trump, the company’s Chief Strategy Officer, acknowledged the unlock but emphasized his personal commitment. “Early investors are now freely available to cash in on their profits, but I am not selling any shares and remain 100% committed to leading the company,” Trump stated. SEC filings reveal Trump personally owns 68.147 million shares.
Broader Impact on Parent Company
The fallout extended beyond American Bitcoin itself. Hut 8 Corp. (NASDAQ: HUT), which owns approximately 80% of ABTC as the parent company and maintains super-voting rights through its Class B shares, dropped approximately 12% on the same day despite the broader crypto sector’s gains. This correlation highlighted how intertwined the two companies’ fortunes had become.
From Vision to Volatility
American Bitcoin’s journey had been marked by bold ambition. Launched in March 2025 as a partnership between established Canadian mining operator Hut 8 and the Trump family—specifically Eric Trump and Donald Trump Jr.—the venture aimed to become “the world’s largest, most efficient pure-play Bitcoin miner”.
Hut 8 contributed approximately 10 exahashes per second (EH/s) of computing power to the venture in exchange for an 80% ownership stake, while the Trump family brought strategic visibility and potential access to new capital sources. Matt Prusak served as CEO, while Eric Trump took the Chief Strategy Officer role.
By September 2025, American Bitcoin debuted publicly through its all-stock merger with Gryphon Digital Mining, with existing shareholders retaining approximately 98% of the combined company.
Strong Fundamentals Mask Volatility
Prior to the crash, American Bitcoin demonstrated operational strength. The company reported $64.2 million in quarterly revenue—more than double the previous quarter—and net income of $3.5 million for Q3 2025. As of September 30, American Bitcoin held 3,418 Bitcoins, representing over $300 million in assets at current prices.
However, the broader Bitcoin mining industry faced headwinds. Record mining difficulty reached 150.84 trillion in October 2025, the seventh consecutive upward adjustment, while hashprices remained below $50 per petahash despite Bitcoin’s price movements. The April 2024 halving had reduced block rewards from 6.25 BTC to 3.125 BTC, effectively halving primary miner revenue.
Market Context and Recovery Prospects
The ABTC crash occurred during a volatile period for cryptocurrency markets. Bitcoin had retreated more than 30% from October highs, though it remained above $91,000 by early December. The remaining 180-day lock-up period would theoretically limit additional insider selling until March 2026, potentially reducing near-term supply pressure.
For investors, American Bitcoin’s December crash underscored how lock-up expirations can create sudden volatility regardless of fundamental strength. While the company’s mining operations remained operational and profitable, market sentiment proved overwhelmingly negative when early shareholders finally gained freedom to exit positions.
Sources: Bloomberg, CoinDesk, TheStreet, Yahoo Finance and industry reports.
