TLDR American Bitcoin (ABTC) shares crashed 50% to $1.75 as pre-merger investors sold after lockup expiration Trading volume surged to 55 million shares versus 3 million average, marking heaviest selling since public debut Eric Trump said early investors cashed out profits, but he’s keeping all shares and cited 56% gross margins Stock has lost 78% [...] The post American Bitcoin (ABTC) Stock Crashes 50% as Early Investors Dump Shares After Lockup Ends appeared first on Blockonomi.TLDR American Bitcoin (ABTC) shares crashed 50% to $1.75 as pre-merger investors sold after lockup expiration Trading volume surged to 55 million shares versus 3 million average, marking heaviest selling since public debut Eric Trump said early investors cashed out profits, but he’s keeping all shares and cited 56% gross margins Stock has lost 78% [...] The post American Bitcoin (ABTC) Stock Crashes 50% as Early Investors Dump Shares After Lockup Ends appeared first on Blockonomi.
American Bitcoin (ABTC) Stock Crashes 50% as Early Investors Dump Shares After Lockup Ends
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TLDR
- American Bitcoin (ABTC) shares crashed 50% to $1.75 as pre-merger investors sold after lockup expiration
- Trading volume surged to 55 million shares versus 3 million average, marking heaviest selling since public debut
- Eric Trump said early investors cashed out profits, but he’s keeping all shares and cited 56% gross margins
- Stock has lost 78% since September peak of $9.31, now trading barely above $2 per share
- Hut 8 (HUT), which owns 80% of ABTC, fell 12% while Bitcoin rallied above $91,000
American Bitcoin Corp experienced a brutal trading session on Tuesday. Shares plummeted more than 50% to $1.75 despite Bitcoin rallying above $91,000. The mining company led by Eric Trump saw its worst day since going public.
American Bitcoin Corp, ABTC
Trading volume exploded to 55 million shares. That’s roughly 18 times the normal daily average of 3 million shares. The surge in activity signaled a rush for the exits among shareholders who gained the ability to sell for the first time.
The stock debuted on Nasdaq in September through a reverse merger with Gryphon Digital Mining. Shares peaked at $9.31 shortly after listing. Tuesday’s close marked a 78% decline from that high. The company traded as high as $14 during the merger process.
Lockup Expiration Triggers Selling Wave
Eric Trump addressed the crash directly on social media. He explained that pre-merger private placement shares unlocked on Tuesday. These early backers could finally take profits after months of restrictions.
Most major shareholders remain locked up, according to SEC filings. A 180-day restriction prevents historical ABTC holders from selling until March 3, 2026. A separate 12-month Investors Rights Agreement extends through September 3, 2026 for some holders. This includes Eric Trump and Donald Trump Jr.
The timing of the collapse stood out. Bitcoin recovered from a dip below $90,000 to trade back near $92,000. Most crypto-related stocks posted gains. ABTC moved in the opposite direction.
Hut 8 Dragged Lower
The selloff spread to Hut 8, which owns 80% of American Bitcoin Corp. HUT shares dropped 12% on Tuesday. This broke a strong rally that had tripled the stock price over six months.
Hut 8 had benefited from shifting its business toward AI infrastructure. The connection to ABTC proved costly on Tuesday.
Company Reports Profitability
American Bitcoin swung to profitability in Q3. Net income hit $3.47 million while revenue reached $64.2 million. The company added 3,000 Bitcoin to its treasury during the quarter. Total holdings now exceed 4,000 BTC.
The stock joins other struggling Trump family crypto ventures. World Liberty Financial’s WLFI token has dropped 70% from its peak. TRUMP and MELANIA meme coins have also declined sharply. Trump Media, which holds Bitcoin, has fallen about 75% year to date.
ABTC closed Tuesday barely above $2 per share on the heaviest trading volume since its public listing.
The post American Bitcoin (ABTC) Stock Crashes 50% as Early Investors Dump Shares After Lockup Ends appeared first on Blockonomi.
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BitcoinWorld Crypto Real Estate Hedge: Eric Trump Unlocks a Revolutionary Strategy In the dynamic world of finance, investors constantly seek innovative ways to safeguard and grow their wealth. Recently, Eric Trump, a prominent figure in real estate and business, made a notable statement that has captured significant attention: he believes a crypto real estate hedge is the perfect solution for protecting property assets. This perspective opens up a fascinating discussion about the evolving relationship between traditional investments and the burgeoning digital asset space. What Exactly is a Crypto Real Estate Hedge? When we talk about a crypto real estate hedge, we are referring to the strategy of using cryptocurrency investments to offset potential risks or volatility in a real estate portfolio. Think of it as diversifying your financial safety net. 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Inflation Protection: Some cryptocurrencies, particularly Bitcoin, are seen by many as a hedge against inflation due to their finite supply. As fiat currencies lose purchasing power, a strong digital asset might retain or even increase in value. Liquidity: While real estate is a long-term, illiquid asset, cryptocurrencies offer high liquidity. You can convert them to cash relatively quickly, providing access to funds when needed. Accessibility: Digital assets are globally accessible, allowing investors to participate in a market that transcends geographical boundaries and traditional banking hours. Eric Trump’s endorsement underscores a growing recognition of these benefits among seasoned investors. He sees it as a forward-thinking move to secure wealth in an unpredictable economic climate. Navigating the Challenges of a Crypto Real Estate Hedge While the potential benefits are clear, adopting a crypto real estate hedge strategy is not without its challenges. 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The Future of Asset Protection: A Compelling Summary Eric Trump’s statement about cryptocurrency being a perfect hedge for real estate assets highlights a significant shift in investment thinking. The concept of a crypto real estate hedge is gaining traction as investors seek resilient strategies in an increasingly interconnected and volatile global economy. While challenges exist, the potential for diversification, inflation protection, and enhanced liquidity makes cryptocurrency a compelling consideration for safeguarding and growing wealth. As the digital asset landscape matures, its role in traditional investment portfolios is likely to expand, offering innovative solutions for asset protection and growth. Embracing this forward-thinking approach could be a key differentiator for investors looking to future-proof their wealth. Frequently Asked Questions (FAQs) 1. What does ‘hedge’ mean in the context of a crypto real estate hedge? 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