American Bitcoin shares drop nearly 40% after early-investor lockup expires

The stock fell nearly 50% in the first hour of trading, dropping from $3.58 to $1.80. It closed at $2.19, a 38.83% decline for the day.

Eric Trump wrote on X that the lockup expiration inevitably caused volatility as early investors gained their first chance to take profits. He added that he is not selling his own shares and believes the company’s fundamentals are “virtually unmatched.” American Bitcoin listed on Nasdaq in September through a merger with Gryphon Digital Mining.

The company posted strong third-quarter results. Revenue climbed to $64.2 million from $11.6 million a year earlier. Net income reached $3.5 million, compared with a $0.6 million loss last year. The firm more than doubled its mining capacity, doubled revenue, and widened its gross margin by seven percentage points quarter over quarter.

American Bitcoin is also expanding its bitcoin reserves. As of November 13, the company held roughly 4,090 BTC, including coins kept with custodians or pledged for mining equipment purchases.

Even so, the stock remains in a steep decline: from its September peak of $9.31, the price has fallen 76.5%. The drop reflects a broader selloff in crypto-related equities. Coinbase is down about 20% over the past month, Circle has fallen 39%, and Gemini is down 47% amid weakness across digital asset markets.

More unlock periods for American Bitcoin shares are slated for 2026. Analysts say investors should track the schedule closely, as future expirations could add further pressure to the stock.