Eric Trump's Crypto Dreams: A Billion-Dollar Reality Check
American Bitcoin Corp. (ABTC), co-founded by Eric Trump, took a nosedive this week, with shares plunging as much as 50% in a single day. This wasn't just a bad day at the office; it was a stark reminder of the volatility inherent in crypto ventures, especially those linked to high-profile figures. The drop coincided with the expiration of a share lockup, freeing early investors to cash out – a move that triggered a massive selloff. Trading volume surged to 55 million shares, dwarfing the daily average of 3 million, according to Nasdaq data. (That's more than 18 times the average, for those keeping score at home.)
The Trump Crypto Curse: A Billion-Dollar Lesson?
The Trump Effect: A Double-Edged Sword
The narrative that the Trump family's involvement in crypto projects is a golden ticket is starting to crumble. While Bitcoin itself rallied, ABTC tanked. Eric Trump attributed the volatility to pre-merger private placement shares unlocking, allowing early investors to realize their profits. He also reiterated his commitment to the company, stating he's holding all his shares. But let's be real: words are cheap. The market's reaction speaks volumes, regardless of Eric's Twitter reassurance.
It's not just ABTC. Other Trump-linked crypto ventures are also feeling the heat. The $TRUMP memecoin is down 85% since its launch. World Liberty Financial's WLFI token has also taken a beating. Even Trump Media (DJT), with its sizable Bitcoin treasury, is down about 75% year-to-date. The "Trump effect," once a perceived tailwind, now looks more like an anchor. In just over a month, the Trump family’s wealth has fallen from $7.7 billion to $6.7 billion, according to Bloomberg. That's a cool billion gone, largely attributed to their crypto entanglements.
Trump Crypto: Mining Gold or Just Mining Investors?
Digging Deeper: Beyond the Hype
ABTC came public via a reverse merger with Gryphon Digital in September 2025. Shares once traded as high as $14; now, they're barely clinging to $2. Eric Trump owns about 7.5% of the firm, a stake that was once valued at $630 million but has since shrunk by over $300 million. Donald Trump Jr. holds a smaller, undisclosed stake. I've looked at hundreds of these filings, and the lack of precise disclosure around Jr.'s stake is unusual, almost as if they're trying to hide something.
Here's the part of the report that I find genuinely puzzling: Eric Trump claims ABTC is mining BTC at ~50% of spot with a 56% gross margin in Q3. If that's accurate, why the fire sale? Are early investors simply taking profits, or do they foresee challenges ahead? And if the company's fundamentals are so strong, why isn't the market reflecting that? Either the market is fundamentally misunderstanding the company, or Trump is spinning a narrative that doesn't quite align with reality.
The SEC filings show a 180-day lockup restricting most historical ABTC holders from selling until March 3, 2026. A separate 12-month Investors Rights Agreement also imposes a standstill through September 3, 2026, including Eric Trump and Donald Trump Jr. So, if the lockup was supposed to last until next year, what exactly unlocked this week? Was it a smaller tranche of shares, as Eric Trump suggests, or is there more to the story? The lack of clarity is concerning. I've seen clearer disclosures from companies selling lemonade stands.
This Isn't Investing; It's Speculation
The data suggests that the Trump family's foray into crypto is less about long-term investment and more about riding a wave of speculation. And as we've seen time and again, speculative bubbles eventually burst. The question isn't whether the Trump-linked crypto projects will recover, but whether they can adapt to a market that's becoming increasingly skeptical of celebrity endorsements and empty promises.
