Eric Trump's American Bitcoin Firm Faces 40% Drop Amid Crypto Winter

Shares of American Bitcoin Corp, backed by Eric Trump, experienced a staggering drop of nearly 40% in a matter of minutes on Tuesday, reflecting the broader challenges of the current cryptocurrency market, often referred to as 'crypto winter'. According to The Guardian, the company, which trades under the ticker ABTC, saw its value plummet from $2.39 to as low as $1.90, marking a significant decline from its peak of $9.31 just a month prior on September 9. This decline wiped out approximately $1 billion from the company's market value and triggered multiple trading halts due to the dramatic shift in stock price. Eric Trump, the son of former President Donald Trump, claimed on social media that the sell-off was driven by early investors cashing in on their profits for the first time, stating, "Our fundamentals are virtually unmatched". However, his assertions did little to stem the tide of losses, which were exacerbated by a significant drop in Bitcoin's price, which fell over 30% from a peak of approximately $126,272 to around $92,133 during the same period.

CoinDesk reported that ABTC's shares fell by as much as 50% during the trading day, with trading volume spiking to 55 million shares compared to a daily average of 3 million, indicating heavy selling pressure. This decline occurred despite Bitcoin recovering slightly on the same day, which saw most other crypto-related stocks rising. Eric Trump attributed the volatility to the unlocking of pre-merger private placement shares, allowing early investors to sell for the first time. He expressed confidence in his investment, stating he remains committed to leading the industry.

Furthermore, Cointelegraph highlighted the connection between ABTC's fortunes and the overall cryptocurrency market, noting that the company's share price drop is indicative of a larger trend affecting crypto-exposed equities. This includes a reported $1 trillion loss across the global crypto market in recent weeks. American Bitcoin Corp was only recently established following a reverse merger with Gryphon Digital Mining earlier in September 2025. Despite reporting a third-quarter net income of $3.5 million on revenues of $64.2 million, the volatility in Bitcoin's price has overshadowed these gains.

The decline in ABTC also mirrors the fortunes of other Trump-affiliated crypto ventures, with World Liberty Financial's WLFI token dropping significantly since its launch. Bloomberg noted that the Trump family's fortune, which had been bolstered by these ventures, decreased from an estimated $7.7 billion in September to about $6.7 billion amid the crypto downturn. As the market continues to grapple with these challenges, Eric Trump remains optimistic, suggesting that those who buy during dips will eventually benefit from the volatility in the cryptocurrency space.