American Bitcoin Corp (ABTC) fell nearly 40% on Dec. 2 after pre‑merger private placement shares unlocked and early investors sold; trading then moved in a volatile, mean‑reverting $2.25–$2.77 range the next session. Co‑founder Eric Trump said the volatility was mechanical and that he won’t sell his stake. The selloff happened despite strong Q3 results (revenue $64.2M, net income $3.5M) and a treasury of about 4,090 BTC. The stock is down ~76.5% from its September $9.31 peak, and analysts warn scheduled equity unlocks in 2026 could add further selling pressure.

Price plunge was driven by a concrete event — pre‑merger private placement shares unlocking and subsequent selling — which produced a near‑40% drop; company fundamentals (Q3 revenue/net income, ~4,090 BTC treasury) did not prevent the selloff; analysts note future scheduled equity unlocks in 2026 that could add more selling pressure, supporting a bearish short‑term outlook.