A major cryptocurrency wager by Donald Trump’s family has hit a massive roadblock. “American Bitcoin,” a Nasdaq-listed Bitcoin mining and treasury company co-founded by Eric Trump and Donald Trump Jr. in partnership with digital infrastructure firm Hut 8, has seen its stock price plummet by more than 95% from its peak. According to Bloomberg calculations, this dramatic sell-off has erased more than $600 million from the market value of Eric Trump’s personal stake over the past 10 months.
The company’s steep decline culminated in its stock hitting an all-time low, forcing a 1-for-15 reverse stock split to avoid being delisted from the Nasdaq exchange.
Sticking to Crypto in an AI Boom
The financial hit stems from a fundamental divergence in industry strategy. While American Bitcoin doubled down exclusively on mining and holding Bitcoin, its top competitors—such as Riot Platforms, MARA Holdings, Cipher Digital, and TeraWulf—began hedging their businesses by retrofitting their data centers to support high-performance Artificial Intelligence (AI) operations. Investors have heavily rewarded the shift toward AI infrastructure, driving those rival stocks up by an average of 60% this year. In stark contrast, American Bitcoin’s shares are down 77% year-to-date.
Because the company’s model relies almost entirely on surging crypto prices, recent market volatility has taken a severe toll on its balance sheet. In the first quarter of the year, American Bitcoin reported a $118.2 million operating loss, driven primarily by a $117.2 million markdown on its Bitcoin treasury holdings.
Profit vs. Public Losses
While the family’s equity stake in the mining firm has taken a massive beating, wider federal financial disclosures paint a complicated picture of the Trump family’s overall crypto ventures. Despite the steep decline of American Bitcoin’s public stock, public filings reveal that other family-backed crypto initiatives—including World Liberty Financial and various digital asset sales—brought in over $1.2 billion last year, generating significant revenue even as everyday retail investors in those specific tokens faced sharp losses.
