Eric Trump’s stake in American Bitcoin has lost more than $600 million in market value, according to Bloomberg calculations.
American Bitcoin, a U.S.-based Bitcoin mining and treasury company co-founded by Eric Trump, Donald Trump Jr., and the digital infra firm Hut 8, has lost more than 95% from its peak as investors reward rivals that can turn data-centers toward AI.
The stock collapse has erased more than $600 million from the market value of Eric Trump’s stake over the past 10 months, according to Bloomberg calculations.
Read also: American Bitcoin Q1 Loss Nears $82M Despite BTC Mining Record
The crypto venture was built on a simple mining-and-buying Bitcoin strategy, but the bear market has made that pitch much harder to sell.
Bloomberg notes that plunge of American Bitcoin’s shares have forced the company into a 1-for-15 reverse stock split earlir this week to maintain its Nasdaq listing. The stock also recently hit an all-time low.
Bitcoin Miners Chase Data Centers
As Bitcoin fell, investors started paying more attention to players that could hedge their businesses with AI.
For instance, Riot Platforms, Cipher Digital, MARA Holdings and TeraWulf have all announced moves into data centers, while their shares are up more than 60% on average this year, the report reads. But American Bitcoin is down 77% this year.
The problem is that Eric Trump’s strategy still depends heavily on Bitcoin moving higher.
In Q1, the company posted a $118.2 million operating loss after marking down its Bitcoin treasury by $117.2 million. Benchmark analyst Mark Palmer told Bloomberg that American Bitcoin is well positioned in crypto mining, but the model still needs a stronger market.
Read more: Forbes: $500M Lost on American Bitcoin — Eric Trump Denies Allegations
