American Bitcoin Corp. (ABTC), a U.S. focused bitcoin mining and treasury firm company founded by Eric Trump and Donald Trump Jr., saw its shares plunge as much as 50% on Tuesday. The drop came despite bitcoin rallying above $91,000 and gains for nearly all crypto-related stocks.

According to Nasdaq data, trading volume surged to 55 million shares compared with a 3 million daily average, signaling heavy selling pressure.

The decline is of particular note given the strong rally in bitcoin on Tuesday — which has gained back all of its panicky decline from the previous 36 hours to trade back to just shy of $92,000. That in turn, has pushed most crypto-related stocks higher

Not so, though, for ABTC, which remains down 40% and Hut 8 (HUT) — an 80% owner of ABTC — which is down 12%. A beneficiary of bitcoin miners shifting business plans to AI infrastructure, HUT had nearly tripled in price in the previous six months.

Speculation on the massive share price drop was around potential insider lockup selling. However, SEC filings show a 180-day lockup that restricts most historical ABTC holders from selling until March 3, 2026.

A separate 12 month Investors Rights Agreement also imposes a standstill through September 3, 2026 including Eric Trump and Donald Trump Jr. A list of lockup periods by individual has been highlighted on X account RisenFit.

ABTC came public via a reverse merger with Gryphon Digital, which closed in September 2025, while shares were trading as high as $14. With today's decline, the stock is now barely holding above $2.

ABTC’s collapse echoes other Trump-linked crypto disappointments. World Liberty Financial’s WLFI token is down 70% from its peak, and TRUMP and MELANIA meme coins have also plunged. Trump Media (DJT) — also crypto-related as it has built a sizable bitcoin treasury — has fallen about 75% year to date.