Key Insights
- American Bitcoin acquired 363 BTC on December 4 after shares plunged nearly 40% following lockup expiration.
- The stock collapsed from $3.58 to $1.80 after early investors dumped positions into thin order books on December 2.
- At press time, ABTC displayed slight recovery stabilizing near $2.4.
- Analysts warned that additional Bitcoin purchases would amplify leverage risks rather than stabilize equity bleeding.
American Bitcoin (ABTC) added 363 BTC to its treasury on December 4 amid an equity rout that erased nearly 40% of shareholder value in a single session.
The purchase followed a lockup expiration that triggered massive selling pressure as early investors rushed to exit positions built during the company’s pre-merger phase.
American Bitcoin Lockup Expiry Triggers Cascading Collapse
As of press time, ABTC shares are down by 44.6% in the past five trading sessions.
It all started on December 2, after previously restricted stock began trading. Pre-merger and private placement investors gained the right to sell as lockup restrictions expired.
Large volumes flooded thin order books, triggering multiple trading halts. The stock fell from approximately $3.58 to an intraday low near $1.80, then closed down roughly 40%.
That said, the stock displayed slight recovery at 0.03% stabilizing near $2.4.
The company had reached a multibillion-dollar valuation following its September Nasdaq debut. Early holders held substantial paper gains and moved quickly to realize profits once restrictions were lifted.
The sudden float increase forced investors to reassess valuations for a miner facing heavy cash outflows and developing business fundamentals that analysts previously flagged as concerns.
Trump Exposure Compounds Pressure
Broader crypto equity sentiment deteriorated as Bitcoin retreated from October peaks.
Crypto-linked stocks faced sustained pressure amid increasingly risk-averse market conditions. Trump-branded assets suffered particularly severe losses throughout 2025.
Trump Media and various Trump-themed tokens shed significant value, affecting how investors viewed American Bitcoin as a vehicle for the Trump family.
The immediate trigger was the expiry of lockups and early investor exits. The severity reflected multiple overlapping factors, including profit-taking after explosive gains, fundamental business questions, and broader risk-off sentiment toward both crypto miners and Trump-linked plays.
Bitcoin news cycles amplified concerns about the sustainability of cash-burning mining operations.
Treasury Purchases Unlikely to Halt Decline in Bitcoin Market
The 363 BTC acquisition on December 4 appeared unlikely to stabilize equity prices. The core problem stemmed from the equity structure and flows, rather than from insufficient Bitcoin holdings.
Lockup expiration, thin float, and Trump-name fatigue created selling pressure that balance sheet additions failed to address.
Market stabilization required credibility and capital discipline rather than headline-generating purchases.
Each additional Bitcoin buy increased leverage to downside moves. American Bitcoin equity increasingly traded like a call option on BTC price.
While attractive during bull markets, this dynamic made shareholders nervous during weak conditions.
A 30% decline in BTC price would hit the balance sheet directly, with equity absorbing the residual shocks.
Additionally, markets questioned the sustainability of businesses following the lockup-driven crash.
Marginal buyers asked whether operations generated durable cash flow or recycled capital into Bitcoin to support stock prices.
Additional purchases risked being interpreted as financial engineering or as attempts to prop up valuations for existing holders rather than as operational improvements.
Treasury Bitcoin purchases supported bids on the margin without necessarily benefiting equity prices.
Stock performance required BTC price appreciation, market confidence in holding through drawdowns, and the absence of funding or solvency risks.
Current conditions presented the opposite scenario as investors tested capital structure resilience.
Capital Discipline Would Stabilize Better
Measures more likely to stabilize American Bitcoin shares included clear communication on capital allocation discipline with defined caps or rules for purchases.
Investors needed visibility on operating cash flow, power costs, and break-even BTC prices.
Insider open-market equity purchases or buybacks would signal more confidence than additional Bitcoin stacking if fundamentals justified such moves.
Transparency around remaining lockup overhang, expected selling pressure, and debt covenants would address structural concerns driving the selloff.
Bitcoin news coverage of treasury additions might generate short-term social media enthusiasm, but failed to address underlying business questions or stop equity bleeding structurally.
The 363 BTC purchase represented a narrative move rather than a balance sheet solution.
While potentially creating brief pops among retail enthusiasts, it left fundamental concerns unaddressed.
The post Trump-Family Backed American Bitcoin Grabs 363 BTC As Shares Crater 40% appeared first on The Coin Republic.
Source: https://www.thecoinrepublic.com/2025/12/05/trump-family-backed-american-bitcoin-grabs-363-btc-as-shares-crater-40/
