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Did Eric Trump lose $600mn? All on risky Bitcoin bet amid AI rise as Donald Trump-backed firm's value shrinks
Eric Trump's leadership at American Bitcoin Corp has led to a $600 million loss as Bitcoin's value drops.
American Bitcoin Corp has lost $600 million due to an unsuccessful venture initiated by co-founder Eric Trump.
According to reports, the second-oldest child of Donald Trump, Eric, has struggled to adapt the company as Bitcoin's value declined during the rise of artificial intelligence. Bloomberg's analysis reveals that he has effectively erased over $600 million in market value within a span of 10 months due to his decision to maintain the original American Bitcoin crypto strategy.
American Bitcoin Corp's struggles highlight $600 mn loss under Eric Trump's leadership
The company's stock is currently 95% below its highest value. Additionally, it had to implement a 1-for-15 reverse stock split to maintain its listing on Nasdaq. On Wednesday, American Bitcoin's stock reached a record low.
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According to Bloomberg, investors have significantly lost interest in purely crypto-focused business models. Rather than depending solely on the volume of Bitcoin they can generate, successful firms must now focus on how to effectively monetize electricity, land, and computing resources.
The unfortunate setback for the Trump family highlights the unpredictable nature of their foray into cryptocurrency. According to his most recent financial disclosures, President Donald Trump generated a minimum of $1.4 billion in crypto in 2025. However, many retail investors are suffering losses as Trump-supported tokens and American Bitcoin struggle.
Bloomberg suggests that Eric holds approximately 6% of American Bitcoin while also acting as its chief strategy officer. Donald Trump Jr., who functions as an adviser, possesses an undisclosed share in the firm.
All we know about American Bitcoin
Originally, the predecessor of American Bitcoin committed to establishing a portfolio of data centers as its primary strategy. Eric and Don Jr. later founded American Data Centers Inc., which was established by the Trump-supported investment bank Domonari Holdings Inc. in February 2025.
At that moment, Eric emphasized that it was essential for the advancement of AI infrastructure in the US. He discarded that plan approximately a month later when the company finalized an agreement with Hut 8 Corp, which stated it would supply American Data Centers with mining equipment in return for equity and an exclusive service contract.
The American Bitcoin, which underwent a name change, subsequently completed a reverse merger with Gryphon Digital Mining Inc., an existing public mining company, and began trading on Nasdaq in early September. The stock reached a peak price of $139.65 on September 9, just five trading days following the reverse merger.
In light of the declining cryptocurrency prices over the past nine months, other miners based in the U.S. have chosen to lease their computing resources to AI. Notable companies such as Riot Platforms Inc., Cipher Digital Inc., MARA Holdings Inc., and TeraWulf Inc. have all entered into agreements to expand their operations into data centers.
The average increase in their shares has exceeded 60% this year. Similarly, American Bitcoin's shares have experienced a decline of approximately 77%.
