Eric Trump’s American Bitcoin Steadies After ‘First Major Unlock’ of Shares

American Bitcoin shares steadied on Wednesday, recovering partially from the end of a lockup period for certain investors that sent its stock price tumbling the day before.

Shares in the Bitcoin mining firm co-founded by Eric and Donald Trump Jr. recently changed hands around $2.33, according to Yahoo Finance. The company’s stock price, however, remained down 35% from a closing price of $3.60 on Monday.

On Tuesday, investors that had participated in a private placement for American Bitcoin in June had the opportunity to “cash in on their profits for the first time,” according to Eric Trump. The company’s shares fell as low as $1.75, meanwhile.

“I’m holding all my @ABTC shares,” he added on X.

As part of the private placement, American Bitcoin sold 159 million shares for $220 million, according to an SEC filing. Based on current prices, those shares would be valued at $397 million. As part of the deal, investors could exchange Bitcoin for shares as well. 

On X, American Bitcoin President Matt Prusak said more of the company’s shares will become freely tradable soon, describing Tuesday as the “first major unlock of pre-merger shares.”

Decrypt has reached out to American Bitcoin for comment.

Earlier this year, American Bitcoin was formed when the Trump brothers merged their own business entity with Miami-based Bitcoin miner Hut8. The company signaled that it was going public through a merger with Gryphon Digital Mining in May.

Although Prusak warned of choppy market conditions in the coming days as “shares find new homes,” he maintained that the price does not reflect the company’s business, whether that’s the amount of computational power it wields or power it consumes.

Opera, Celo Scale Up Partnership to ‘Make Stablecoins Useful’ For Millions of Users

In the third quarter, Prusak said that American Bitcoin mined the asset at a cost of around $50,000 per coin, while also being able to add to its own stockpile. The company currently owns 4,004 Bitcoin worth roughly $370 million, according to Bitcoin Treasuries.

Over that same period, the company generated $64 million in revenue compared to $11.6 million the year before. American Bitcoin meanwhile disclosed $3.5 million in profit, following a loss of $576 million a year ago.

This year, share unlocks have hampered crypto-buying firms that were trading well above the value of their crypto holdings, including SharpLink Gaming and Upexi. On Wednesday, the stock prices of those companies continued to trade at relatively lower levels.