American Bitcoin, which is a crypto mining company backed by Donald Trump Jr. and Eric Trump, just got absolutely hammered, losing nearly 40% of its value in a single day. The stock closed down almost 39%, wiping out roughly $1 billion in market cap.
Trading volume went crazy, jumping to almost 40 times the normal daily average. Eric Trump tried explaining the massive drop by saying investors who put in $215 million back in June finally got their chance to lock in profits after a share lockup period ended, which caused all this volatility.
American Bitcoin mines new Bitcoin and keeps its own strategic reserve of the cryptocurrency. Eric Trump is the chief strategic officer, and Donald Trump Jr. is one of the early investors. The company’s president, Matt Prusak, said the lockup ending affects who can trade but doesn’t change the company’s actual assets or daily operations.
This isn’t the only Trump family crypto venture struggling, though. Donald Trump Jr. and Eric also cofounded World Liberty Financial, which has seen its WLF token crash 86% over the past year. Trump Media, which runs Truth Social, announced plans to raise money for a Bitcoin treasury, but those shares have dropped 70% since the start of the year.
Conclusion
American Bitcoin plunged nearly 40% as a major lockup expired, triggering heavy selling. Trump-linked crypto ventures continue to struggle with crashing tokens and sharp share declines across the board.
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