American Bitcoin stock tumbles 50% as BTC proxy trade unravels

American Bitcoin Corp (ABTC) — the Bitcoin-mining and treasury company headed by Eric Trump — just got absolutely wrecked in early trading Tuesday. Shares plunged more than 50% as the broader crypto market meltdown triggered a brutal repricing of crypto-linked equities. The stock hit an intraday low of $1.75, a 51% nosedive according to Yahoo Finance data.

This isn't just a bad day — ABTC is now down roughly 78% from its post-listing high of $9.31 on Sept. 9. That's the brutal reality of the digital-asset sector unwinding and spilling over into related stocks.

No single catalyst drove Tuesday's massacre, but crypto-linked stocks have been getting crushed lately amid a broad retreat in digital assets and profit-taking across tech shares.

Here's the brutal context: American Bitcoin's entire business is tied to BTC's price, which has experienced one of its sharpest pullbacks in history since mid-October — falling from a peak near $126,000 to a November low below $80,000.

The crypto market downturn has triggered a widespread repricing of crypto-exposed equities, especially miners and companies holding large Bitcoin treasuries.

The irony? American Bitcoin Corp actually reported a swing to profitability in Q3 — net income hit $3.47 million and revenue climbed to $64.2 million. They even added 3,000 Bitcoin to their reserves last quarter, bringing total holdings to over 4,000 BTC.

But ABTC isn't alone in this bloodbath. Shares of Strategy (MSTR), led by Michael Saylor, have plunged more than 50%, pushing the company's market cap below the value of its Bitcoin holdings.

Eric Trump said last month he's unfazed by the recent volatility, calling it the 'friend' of investors who value accumulating at better prices. Bold words while the stock gets halved.