Shares of American Bitcoin (ABTC.O) showed signs of recovery on Wednesday, trading sideways in pre-opening trading after experiencing a sharp drop of approximately 40% on Tuesday following the unlock of the stock. The stock rose 9% to $2.39 after heavy selling.
American Bitcoin, majority-owned by Hut 8 Corp, is among several crypto ventures linked to the Trump family and began trading on Nasdaq in September following a reverse merger with Gryphon Digital Mining. The company’s co-founder and strategy director is Eric Trump, and among the shareholders is Donald Trump Jr..
American Bitcoin President Matt Prusak, in his assessment via X, stated, “We expected the next few days to be volatile as the shares find new owners.” Hut 8 CEO and American Bitcoin Board Chairman Asher Genoot announced that Eric Trump, Donald Trump Jr., and other co-founders did not participate in the key opening and retained their shares.
The sell-off coincided with a period when the global risk-aversion trend increased pressure on digital assets. In this environment, crypto projects associated with the Trump family are also experiencing sharp declines in value. The memecoins $TRUMP and $MELANIA, launched at the beginning of the year, have fallen by 92% and 99% respectively from their peaks. Furthermore, shares of Trump Media & Technology Group (DJT.O), which raised billions of dollars in funding to buy bitcoin, have declined by 67% since the beginning of the year.
