Key Takeaways
- Shares of American Bitcoin Corp have plummeted more than 95% from their all-time high, reaching record lows this week
- The market value of Eric Trump’s 6% ownership position has declined by over $600 million
- To maintain its Nasdaq listing, the firm implemented a 1-for-15 reverse stock split
- Competing mining operations that transitioned to AI data center services have gained approximately 60% year-to-date, contrasting with American Bitcoin’s 77% decline
- Despite posting a $118.2 million operating loss in Q1, Eric Trump maintains the company’s Bitcoin accumulation strategy
The cryptocurrency mining venture co-founded by Eric Trump, American Bitcoin Corp, faces mounting financial troubles. The company’s stock price has collapsed over 95% from its zenith, wiping out more than $600 million in value from Eric Trump’s ownership stake over the past ten months.
Shares touched a record low this week, dropping below $6 per share. This represents a dramatic fall from the stock’s pinnacle of $139.65, achieved merely five trading sessions after its Nasdaq debut in September 2024.
The company executed a 1-for-15 reverse stock split this week to preserve its Nasdaq listing requirements.
Eric Trump maintains approximately 6% ownership of the enterprise and holds the position of chief strategy officer. His brother, Donald Trump Jr., serves as an adviser, although the extent of his equity stake remains undisclosed.
The Strategic Shift That Backfired
The company’s history reveals a significant strategic reversal. Originally launched as American Data Centers Inc., the venture received backing from the Trump brothers via Dominari Holdings. At its February 2025 inception, Eric Trump proclaimed it was “crucial for the development of AI infrastructure in the United States.”
Merely thirty days later, management executed a dramatic course correction. The company negotiated an arrangement with Hut 8 Corp to acquire mining equipment in return for equity, subsequently completing a reverse merger with Gryphon Digital Mining before rebranding as American Bitcoin Corp.
This abandonment of the data center vision would prove financially devastating.
The Divergence: Competitors Embrace AI While American Bitcoin Holds Firm
As Bitcoin valuations declined, competing mining operations acted swiftly. Riot Platforms, Cipher Digital, MARA Holdings, and TeraWulf each announced strategic initiatives to expand into AI data center operations. These companies’ stock prices have climbed an average of over 60% year-to-date.
American Bitcoin chose a different trajectory. The firm’s capital remains concentrated in mining equipment and Bitcoin reserves. Day-to-day operations are managed by Hut 8 through an exclusive service agreement, which grants most AI data center opportunities to Hut 8 rather than American Bitcoin.
Hut 8, which has aggressively pursued AI infrastructure development, has witnessed its share price more than double in 2025.
During the first quarter, American Bitcoin reported a $118.2 million operating loss, which included a $117.2 million impairment charge on its Bitcoin treasury.
Nevertheless, the company acquired an additional 500 Bitcoin this Monday and currently holds over 8,000 BTC. Eric Trump has stated that circumstances would need to be “beyond catastrophic” before selling would be considered.
Industry analysts characterize the situation plainly. “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 a minimum of $1.4 billion in cryptocurrency revenue during 2025 from his family’s various digital asset enterprises.
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