Key Takeaways
- Shares of American Bitcoin Corp have plummeted more than 95% from their all-time high, reaching record lows this week
- The collapse has wiped over $600 million from Eric Trump’s 6% ownership position
- A mandatory 1-for-15 reverse stock split was executed to maintain Nasdaq compliance
- Competing mining operations that transitioned to AI infrastructure have gained approximately 60% year-to-date, contrasting sharply with American Bitcoin’s 77% decline
- Despite recording a $118.2 million operating deficit in Q1, Eric Trump remains committed to accumulating Bitcoin
The crypto mining venture co-launched by Eric Trump, American Bitcoin Corp, is experiencing a spectacular collapse. The company’s shares have nosedived over 95% from their zenith, obliterating more than $600 million in value from Eric Trump’s holdings over a ten-month period.
Shares bottomed out at an unprecedented low earlier this week, changing hands below $6 per share. This represents a dramatic fall from the stock’s peak of $139.65, achieved merely five trading sessions after its Nasdaq debut in September 2024.
To maintain its exchange listing, the company implemented a 1-for-15 reverse stock split this week.
Serving as chief strategy officer, Eric Trump controls approximately 6% of the enterprise. His brother, Donald Trump Jr., occupies an advisory role, though the extent of his equity interest remains undisclosed.
The Strategy Shift That Wasn’t
The company’s formation tells an interesting story. Originally conceived as American Data Centers Inc., the venture received backing from the Trump siblings through their Dominari Holdings vehicle. At its February 2025 inception, Eric Trump characterized it as “crucial for the development of AI infrastructure in the United States.”
Merely thirty days later, management changed course dramatically. Through a transaction with Hut 8 Corp, the company acquired mining equipment in return for equity shares, subsequently completing a reverse merger with Gryphon Digital Mining and adopting the American Bitcoin Corp identity.
Abandoning the data center strategy would ultimately prove disastrous.
Competition Embraced AI While American Bitcoin Held Firm
As Bitcoin valuations declined, competing miners executed rapid strategic adjustments. Riot Platforms, Cipher Digital, MARA Holdings, and TeraWulf each announced initiatives to incorporate AI data center capabilities. These companies have collectively appreciated over 60% on average year-to-date.
American Bitcoin pursued an opposite trajectory. The firm’s capital remains concentrated in mining infrastructure and digital currency reserves. Operational management has been outsourced to Hut 8 through an exclusive arrangement, which effectively allocates most AI data center opportunities to Hut 8 rather than American Bitcoin.
Hut 8, having aggressively pursued AI infrastructure development, has witnessed its stock price more than double during the current year.
First quarter results showed American Bitcoin recording a $118.2 million operating deficit, which included a $117.2 million impairment charge against its Bitcoin treasury.
Nonetheless, the company acquired an additional 500 Bitcoin on Monday, expanding its holdings beyond 8,000 BTC. According to Eric Trump, circumstances would need to become “beyond catastrophic” before liquidation would be contemplated.
Industry observers note the fundamental challenge. “The price of Bitcoin needs to be moving up for the business model to work,” explained Mark Palmer of Benchmark Co.
Separately, President Donald Trump disclosed at least $1.4 billion in cryptocurrency-related income during 2025 from his family’s various digital asset enterprises.
