After the lock-up period ended, there was a massive sale… Second son co-founded, first son was an early investor. On July 29 (local time), U.S. President Donald Trump played a tee shot at the grand opening of Trump International Golf Links Aberdeen at Balmedie, Scotland, watched by his son Eric Trump.
In an article by News1’s Shin Ki-rim, the stock price of American Bitcoin, a U.S. cryptocurrency mining company involving Donald Trump Jr., the eldest son, and Eric Trump, the second son, plummeted by 40%. On the 2nd, during regular trading on the New York Stock Exchange, the company’s stock fell by 38.83% in one day, wiping out over 1 billion dollars in market capitalization. This drop is attributed to early investors who participated in a 215 million dollar private placement last June, selling off en masse immediately after the lock-up period ended.
Eric Trump stated, “This sale is merely investors realizing their profits for the first time,” adding, “I hold all my shares and am 100% committed to leading the industry.” He is a co-founder and Chief Strategy Officer (CSO) of American Bitcoin, while Donald Trump Jr. participated as an early investor.
American Bitcoin went public through a reverse merger with NASDAQ-listed Gryphon Digital Mining in September. The company’s website states its goal is “building the most powerful and efficient Bitcoin accumulation platform in the world.”
The steep drop aligns with the overall instability in the cryptocurrency market lately. Bitcoin fell about 30% from its early October peak but rebounded to recover the $90,000 level on the same day.
American Bitcoin was originally operated as American Data Centers (ADC), but it was restructured in March through a collaboration with Canadian mining company Hut 8. Hut 8 transferred all its mining equipment and secured a stake in ADC, but saw its stock drop by 11% following this incident.
Beyond American Bitcoin, Trump’s sons also co-founded World Liberty Financial, whose self-issued token (WLF) has dropped in value by 86% over the past year.
Additionally, the Trump-owned Trump Media & Technology Group (TMTG) announced plans earlier this year to raise funds amounting to $2.5 billion to establish a “Bitcoin treasury.”
**Glossary**
**Lock-up:** A measure that restricts initial investors or major shareholders from selling their shares on the market for a certain period after a company goes public. Once the lock-up period ends, a large volume of shares can be released, potentially causing the stock price to plummet.