Bitcoin mining company with connections to the Trump family hit hard by cryptocurrency downturn

American Bitcoin Corp. Faces Steep Losses Amid Crypto Downturn

Photo by Victor J. Blue/Bloomberg

(Bloomberg) American Bitcoin Corp., a mining company with backing from the Trump family, soared onto the Nasdaq during the height of crypto enthusiasm. Now, the company is grappling with the most severe industry slump since 2022.

Based in Miami, American Bitcoin announced a $59 million loss for the fourth quarter. This comes as the company’s stock has plummeted nearly 90% from its September peak, reflecting the broader struggles of Trump-linked digital asset ventures.

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While most competitors shifted their focus to artificial intelligence, American Bitcoin stuck with a pure mining and holding approach—a strategy led by co-founder Eric Trump. This seemed wise when Bitcoin soared past $126,000, but with prices now near $70,000, the risks have become clear. The company recorded an unrealized loss of $227 million for the year due to the declining value of its Bitcoin holdings.

“When Bitcoin falls sharply, holding onto mined coins can magnify losses,” explained Matthew Kimmell, a digital asset analyst at CoinShares. “As the value of inventory drops, investors may start to anticipate financial strain before it shows up in the company’s operations.”

Photo by Victor J. Blue/Bloomberg

The broader downturn has hit all of the Trump family’s crypto-related businesses. World Liberty Financial, a decentralized finance platform that recently hosted Wall Street leaders at Mar-a-Lago, has seen its token value drop 65% since its September launch. President Trump’s own memecoin has fared even worse, losing 72% since it began trading in March.

Interestingly, American Data Centers Inc.—originally intended as an AI infrastructure provider and backed by the Trump sons—eventually became part of American Bitcoin.

Few Trump-affiliated projects have fallen as quickly as American Bitcoin, whose shares crashed by about 50% in a single day on December 2. While American Bitcoin held onto every coin it mined, other major miners like MARA Holdings and Riot Platforms began converting some of their operations to AI infrastructure. Meanwhile, companies such as Cipher Mining and TeraWulf took more drastic steps, selling off portions or all of their coin reserves and mining sites.

Looking Ahead: Can American Bitcoin Recover?

American Bitcoin’s future depends heavily on factors beyond its control. Its mining and holding strategy will only succeed if Bitcoin’s price rebounds. The company did see a 22% increase in revenue from the previous quarter. The administration’s push to prioritize cryptocurrency—including holding Bitcoin as a government reserve—could benefit the industry as a whole.

“My focus is on American Bitcoin and World Liberty,” Eric Trump said in a February 19 interview, when asked about joining the boards of traditional crypto exchanges. “I want to truly combine modern digital finance with tangible assets.”

In March, the Trump family announced a new Bitcoin mining venture with Hut 8 Corp., which transferred all its mining assets to the new entity and shifted its attention to AI data centers.

This new venture followed Hut 8’s acquisition of a controlling stake in American Data Centers, a company founded by investors including Eric Trump and Donald Trump Jr. After the deal, American Data Centers was rebranded as American Bitcoin.

This move aligns with President Donald Trump’s 2024 campaign promise to mine all remaining Bitcoin in the United States. However, this goal is likely out of reach due to intense global competition and U.S. tariffs, which complicate hardware imports—most of which come from China.

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