Full Breakdown
Eric Trump’s Crypto Venture Loses More Than $600 Million as Market Shifts Toward AI-Focused Mining
7/10/2026, 1:46:58 PM
Eric Trump’s $600 Million Crypto Setback
American Bitcoin, the U.S.-based Bitcoin mining and treasury firm co-founded by Eric Trump, Donald Trump Jr. and Hut 8, has seen its market value plunge by over $600 million in the past ten months. Bloomberg calculations show the company’s shares are now roughly 95 % below their peak, prompting a 1-for-15 reverse stock split to stay listed on Nasdaq. The stock hit an all-time low in early September, and its price remains down about 77 % for the year.
Background: From Data Centers to AI-Focused Mining
The venture originally pursued a straightforward mining-and-buy-Bitcoin strategy, with Eric Trump asserting it was “crucial for the development of AI infrastructure in the United States.” As Bitcoin prices fell, investors began favoring miners that could repurpose computing capacity for artificial-intelligence workloads. Competitors such as Riot Platforms, Cipher Digital, MARA Holdings and TeraWulf have each announced data-center expansions, driving their shares up more than 60 % on average this year.
Financial Impact and Market Reaction
- Market-value loss: >$600 million for Eric Trump’s 6 % stake.
- Share decline: ~95 % from peak; ~77 % drop in 2024.
- Q1 operating loss: $118.2 million, largely from a $117.2 million markdown of the company’s Bitcoin treasury.
- Corporate restructuring: Reverse merger with Gryphon Digital Mining and a reverse split to retain Nasdaq compliance.
Official Responses and Analyst Views
Company filings note the reverse merger with Gryphon Digital Mining and a partnership with Hut 8 that supplies mining equipment in exchange for equity. Benchmark analyst Mark Palmer told Bloomberg that “American Bitcoin is well positioned in crypto mining, but the model still needs a stronger market.” Bloomberg also highlighted that the firm’s strategy remains heavily dependent on Bitcoin price appreciation, a risk that has amplified the recent losses.
Verbatim Quotes
- “At the time, Eric asserted it was “crucial for the development of AI infrastructure in the United States.” — Eric Trump
- “, 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.” — Bloomberg report
- “Source: Bitcoin Foundation The problem is that Eric Trump’s strategy still depends heavily on Bitcoin moving higher.” — Bloomberg analysis
- “Benchmark analyst Mark Palmer told Bloomberg that American Bitcoin is well positioned in crypto mining, but the model still needs a stronger market.” — Mark Palmer
The collapse underscores how rapidly the cryptocurrency mining sector is realigning toward AI-driven computing, leaving pure-play Bitcoin operations like American Bitcoin vulnerable to market swings.
