Trump-backed American Bitcoin Corp stock plunges almost 40% as private placement shares unlock
The stock plunge highlights potential volatility in crypto investments and raises questions about the stability of Trump-linked ventures.
Powered by Gloria
Updated 1:24 p.m. ET
American Bitcoin Corp (ABTC), a Bitcoin mining and treasury company linked to the Trump family, saw its shares plunge approximately 40% at market close today as early investors might have begun offloading their positions.
The sharp decline follows the expiration of a lock-up period that had previously prevented early investors from selling their stakes.
Eric Trump said that today’s unlock of pre-merger private placement shares will allow early investors to sell for the first time, which may introduce volatility. He asserted that the company’s fundamentals remain strong, adding that he isn’t selling any of his ABTC shares.
American Bitcoin Corp specializes in crypto-related projects and operates as both a mining operation and a treasury company focused on Bitcoin holdings.