American Bitcoin Corp, co-founded by Eric Trump, has suffered drastic declines, with its stock plummeting over 95% from its peak, leading to more than $600 million in lost market value of Trump's 6% stake. The company's shares hit an all-time low this week, trading below $6, far from the high of $139.65 reached shortly after its Nasdaq debut in September 2024.
This week, in a move to maintain its Nasdaq listing, American Bitcoin executed a 1-for-15 reverse stock split. Trump's role in the company as chief strategy officer highlights the depth of his investment in the venture. Despite not disclosing another advisor's stake, Donald Trump Jr. is noted as an adviser.
Originally launched as American Data Centers Inc. in February 2025, the company initially aimed to develop AI infrastructure, backed by the Trump family through Dominari Holdings. However, after just one month, it transitioned, partnering with Hut 8 Corp for mining equipment and merging with Gryphon Digital Mining, rebranding as American Bitcoin Corp. This shift marked a significant pivot from its original focus, ultimately leading to substantial losses.
While American Bitcoin has remained committed to its initial mining strategy, rivals have adapted. Competitors such as Riot Platforms and Cipher Digital have successfully transitioned to AI data centers, seeing an average surge of over 60% in their stocks this year. In stark contrast, American Bitcoin's shares have faltered, down by 77%, largely due to its continued reliance on mining rather than diversifying into more lucrative avenues.
Operating losses have plagued American Bitcoin, with a recent report showing a $118.2 million operating loss in the first quarter, which included a substantial markdown of $117.2 million on its Bitcoin holdings. Still, the company proceeded to purchase an additional 500 Bitcoin, indicating a steadfast commitment to its mining strategy despite ongoing losses.
This is for informational purposes only and should not be considered financial advice.
