Investors in Eric Trump’s cryptocurrency mining venture, American Bitcoin Corp. (ABTC), experienced significant turmoil on December 2, 2025, as the company’s stock value plummeted by 35%. Initially, the shares dropped more than 50% shortly after the market opened, following a closing price of $3.58 the day before. By 2:30 p.m., the stock had rebounded slightly to $2.33, but just six days later, it closed at $2.02, indicating continued instability.
The sharp decline was reportedly triggered by the expiration of the company’s equity lockup, a common practice in the cryptocurrency sector. This lockup had prevented investors from selling their shares for a predetermined period, allowing for price stabilization after the public offering. However, as the lockup ended, many investors were poised to sell, leading to a rush that sent shares tumbling.
American Bitcoin was established in May 2025 when Eric Trump and his brother, Donald Trump Jr., acquired a 98% stake in the company. The formation of ABTC followed a merger with Hut 8, an AI energy infrastructure firm that had previously initiated bitcoin mining operations. Later, American Bitcoin underwent an all-stock merger with Gryphon Digital Mining, ultimately leading to its public debut on Nasdaq in September 2025.
The landscape for Bitcoin mining is highly competitive, with miners vying to verify digital transactions by solving complex mathematical equations. This process requires advanced computing technology, constant internet connectivity, and cooling systems to prevent overheating, making it impractical for individual endeavors. Consequently, most mining activities are conducted through pooled resources in large data centers, like those utilized by American Bitcoin.
Despite the challenges, including a marked decline in Bitcoin’s value—from $124,774 on October 6 to $89,245 by December 6—there remains a contingent of hopeful investors. Some proponents, including notable figures like former President Donald Trump, have suggested ambitious uses of Bitcoin, even hinting at its potential for addressing issues like the U.S. national debt. Nevertheless, as the cryptocurrency market faces pressure, Eric Trump remains optimistic, asserting his commitment to the industry and publicly stating on social media that he intends to hold his ABTC shares despite the recent downturn.
