Particle.news

American Bitcoin Plunges, Forcing Reverse Split and Deepening Eric Trump’s Losses

The company’s decision to remain a pure Bitcoin miner leaves it exposed as investors favor firms that convert mining power and sites for AI data centers.

Overview

  • In early July the stock hit an all-time low and the company carried out a 1-for-15 reverse split to keep its Nasdaq listing.
  • Shares have fallen more than 95% from their September peak, erasing over $600 million of market value from Eric Trump’s roughly 6% stake.
  • American Bitcoin reported a $118.2 million operating loss in Q1 after marking down its Bitcoin treasury by $117.2 million, reflecting the multi-month Bitcoin price decline.
  • Company leaders, including Eric Trump, say they will not sell the treasury and have continued to buy Bitcoin, adding hundreds of coins during the recent slump.
  • The slide shows a broader market rotation toward miners that lease electricity, real estate and compute for AI work and highlights how service deals with Hut 8 limit American Bitcoin’s ability to pivot to data centers.