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American Bitcoin Craters After Lockup Expiry, Erasing About 40% in a Day

A lockup release of pre‑merger shares triggered heavy selling despite a bitcoin rebound.

Overview

  • The stock dropped as much as 50% intraday before closing down roughly 40% after repeated trading halts.
  • Nasdaq data showed about 55 million shares traded versus a roughly 3 million daily average, signaling exceptional turnover.
  • Eric Trump said previously restricted private‑placement shares became freely tradable and stated he is holding his stake while touting Q3 gross margin of 56%.
  • Hut 8, which owns a majority stake in American Bitcoin, fell about 12% to 15% in sympathy.
  • American Bitcoin went public via a September reverse merger with Gryphon Digital, ran to highs near $14, traded just above $2 after the plunge, and analysts flagged additional lockup expirations in 2026 as a risk to watch.