American Bitcoin (ABTC) stock plunged 39% on Tuesday. Here’s why.

American Bitcoin closed a $220.1 cardinal unregistered backstage equity placement connected June 27, 2025, but U.S. Securities and Exchange Commission (SEC) filings for the offering bash not disclose immoderate fastener up periods for investors.

American Bitcoin President Matt Prusak posted connected X that December 2 marked the “first large unlock of pre-merger shares” from “early investors who backed [American Bitcoin] months ago.”

Based connected the SEC’s Rule 144, the June 27 backstage placement shares wouldn’t usually beryllium freely tradable for non-affiliate investors until precocious December unless a registered resale connection oregon different valid resale exemption applied, truthful without further disclosures, it’s not wholly wide which circumstantial pre-merger capitalist shares were unlocked connected December 2.

Blockspace asked American Bitcoin whether the unlocked shares were related to the June 27 backstage placement oregon different pre-merge fundraise, but we did not perceive backmost by work time.

American Bitcoin debuted connected the Nasdaq connected September 3, 2025 aft completing its reverse merger with Gryphon Digital. Prior to the merger, Hut 8 (NASDAQ: HUT) brought American Bitcoin nether its marque arsenic a majority-owned subsidiary, exchanging its bitcoin mining hardware portfolio for an 80% involvement successful the company.

American Bitcoin’s selloff besides comes amid a broader diminution successful bitcoin-related equities, with galore large bitcoin mining stocks down 20-40% month-over-month.

Edwin Ziheng Wang contributed reporting.