American Bitcoin shares have experienced a drastic decline of over 95% from their peak, leading to a significant loss exceeding $600 million in the value of Eric Trump’s approximately 6% stake. This downturn occurred despite the company's ongoing efforts to expand its Bitcoin treasury, which has recently surpassed 8,000 BTC.
On July 10, American Bitcoin shares closed at $6.13 after enduring months of persistent selling pressure. The recent drop follows the completion of a 1-for-15 reverse stock split implemented to comply with Nasdaq's minimum bid-price rule. The reverse split, effective from July 2, reduced the total number of issued shares from about 1.09 billion to approximately 73 million.
While a reverse split raises the quoted share price by decreasing the number of shares outstanding, it does not enhance the company’s overall market value. American Bitcoin has not indicated that this consolidation could reverse the ongoing decline in stock price.
The company's share price decline has severely impacted Eric Trump's holdings. Over the last ten months, his stake has lost substantial value, driven by the reported decline in stock prices. Even as American Bitcoin continues to mine Bitcoin and accumulate assets, its share value remains low, reflecting a disconnect between treasury growth and market performance.
Despite adding 500 BTC to its treasury and achieving a more than threefold increase since its Nasdaq debut, the growth in Bitcoin holdings has not translated into increased share prices. Eric Trump previously praised the company’s treasury growth, asserting that its operational model is exceptionally competitive. However, the market has reacted differently, leading to continuous downward pricing.
In its latest financial report for Q1 2026, American Bitcoin disclosed an operating loss of $118.2 million, which included a sizable non-cash charge of $117.2 million due to the diminished market value of its Bitcoin assets. The company reported an $81.8 million net loss and earned $62.1 million in mining revenue during the same period, as Bitcoin's price fell approximately 22%.
This article is for informational purposes only and does not constitute financial advice.
