Key Takeaways:
American Bitcoin Corp's stock has lost 97% of its value in 12 months, erasing more than $600 million from Eric Trump's stake.
American Bitcoin Corp shares have fallen 97% over the past year, reducing a $10,000 investment to about $260 as the Trump-backed miner's bet on Bitcoin accumulation backfired.
"The company is very well positioned from the standpoint of fleet efficiency and fleet size, but the price of Bitcoin needs to be moving up for the business model to work," Mark Palmer, an analyst at Benchmark Co., said.
The stock, trading under the ticker ABTC on Nasdaq, was valued at about $14 a year ago on a pre-split adjusted basis. It now sits near $5.86 after a 1-for-15 reverse stock split on July 6 that mechanically inflated the per-share price without changing the company's underlying value. The decline has erased more than $600 million from Eric Trump's stake over the past 10 months, according to Bloomberg calculations. Eric Trump, who serves as chief strategy officer, owns roughly 6% of the company.
The collapse highlights the risk of a pure-play Bitcoin mining strategy in a bear market. While competitors like Riot Platforms Inc. and TeraWulf Inc. have pivoted toward leasing infrastructure for AI data centers — sending their shares up more than 60% this year — American Bitcoin has remained committed to accumulating the cryptocurrency, leaving it exposed to Bitcoin's 50% decline from its $126,000 peak.
Operational Strength, Market Pain
American Bitcoin's operational metrics tell a different story from its stock price. The company grew its Bitcoin holdings 30% in the first quarter, from 5,401 BTC at the end of December to 7,021 BTC at the end of March, and recently crossed 8,000 BTC in its strategic reserve. It operates about 89,242 miners running at 28.1 exahash per second, and its cost to mine fell 23% in the fourth quarter of 2025 while gross margins held above 50%.
Yet the stock market is pricing the Bitcoin exposure, not the operations. The company posted a $118.2 million operating loss in the first quarter after marking down its Bitcoin treasury by $117.2 million. A share lock-up expiry triggered a near 40% single-session plunge, and the reverse stock split confirmed how far the stock had fallen.
Trump Brand Fails to Shield Stock
American Bitcoin was positioned as the most politically connected mining company in the market, co-founded by Eric Trump and Donald Trump Jr. The stock peaked at $139.65 on Sept. 9 — just five trading days after its Nasdaq debut — and has since lost more than 95% of its value. Eric Trump has urged patience, telling the Bitcoin Conference 2026 in Las Vegas in April to "just hold on." The company has continued buying Bitcoin, adding another 500 tokens on Monday, and has said it has no plans to sell unless conditions become "beyond catastrophic."
This article is for informational purposes only and does not constitute investment advice.
