Eric Trump-Linked American Bitcoin Stock Crashes 40% as Lockup Ends

Core Insights - Shares of American Bitcoin (ABTC) experienced a significant decline of nearly 50% shortly after a portion of the company's stock was released from its lockup period, closing down 38.83% at $2.19 [1][3][9] Financial Performance - In the third quarter, American Bitcoin reported revenue of $64.2 million, a substantial increase from $11.6 million a year earlier, and net income improved to a profit of $3.5 million from a loss of $0.6 million [5] - The company has more than doubled its mining capacity and improved margins, with a seven-point increase quarter over quarter [5] Stock Performance and Market Reaction - Following the lockup expiry, ABTC shares fell to as low as $1.80 from a previous close of $3.58, reflecting investor caution regarding supply unlocks and volatility from early backers exiting positions [3][7] - The stock has declined approximately 76.5% from its September peak of $9.31, indicating a broader slump in crypto-linked equities, with other companies like Coinbase and Circle also experiencing significant drops [6][7] Company Strategy - American Bitcoin is actively building its treasury, holding about 4,090 BTC as of November 13, which includes coins kept in custody or pledged for new mining equipment [6] - The management's strategy aims to increase direct exposure to Bitcoin while also enhancing production volume [6] Management Commentary - Eric Trump commented on the selloff, stating it was anticipated due to the unlocking of pre-merger private placement shares, and emphasized that the company's business remains strong [4][9]