- American Bitcoin shares rebounded partly after an end to a lockup period caused a sharp decline.
- The stock price dropped 35% from $3.60 to around $2.33 following investor sales.
- Investors from a June private placement were able to sell shares for the first time.
- American Bitcoin President indicated additional shares will become tradable soon.
- The company reported $64 million revenue and $3.5 million profit in Q3, mining Bitcoin at about $50,000 per coin.
Shares of American Bitcoin, a Bitcoin mining firm co-founded by Eric and Donald Trump Jr., partially recovered after plunging due to the expiration of a shareholder lockup period. Following the lockup’s conclusion, shares traded near $2.33 but remained down 35% from Monday’s $3.60 close. The price had dropped as low as $1.75 during the sell-off, triggered by investors selling newly available shares.
Investors involved in a private placement completed in June were granted the first opportunity to sell their shares on Tuesday, allowing them to realize profits. Eric Trump stated on X that he was holding on to his shares. That private placement involved the sale of 159 million shares for $220 million, as detailed in an SEC filing. At current prices, those shares would be worth approximately $397 million. Investors were also permitted to exchange Bitcoin for shares during the deal.
On X, American Bitcoin President Matt Prusak described Tuesday as the “first major unlock of pre-merger shares” and reported that additional shares would soon be freely tradable. The company was formed earlier this year when the Trump brothers merged their business entity with Miami-based Hut 8. A public listing is planned through a merger with Gryphon Digital Mining.
Despite recent price volatility, Prusak noted that the share price does not accurately reflect the company’s operational scale, including its computational capacity and power consumption. In the third quarter, American Bitcoin mined Bitcoin at an estimated cost of $50,000 per coin while increasing its Bitcoin holdings. As of now, the firm owns 4,004 Bitcoin, valued at about $370 million according to Bitcoin Treasuries.
During Q3, the company generated $64 million in revenue, up from $11.6 million the previous year. It also reported a profit of $3.5 million, reversing a loss of $576 million from the same period last year.
This year, share unlock events have negatively impacted other crypto-buying companies that traded above the value of their crypto assets, including SharpLink Gaming and Upexi. Their stock prices have also remained lower following unlock periods.
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