American Bitcoin Corp., the Bitcoin mining and treasury company backed by Eric Trump and Donald Trump Jr., has reportedly erased approximately $600 million in paper wealth tied to the Trump family’s stake as the broader Bitcoin mining industry struggles through a prolonged market downturn.
The sharp decline follows months of falling cryptocurrency prices, weakening mining economics, and heavy selling across publicly traded Bitcoin mining companies. Shares of American Bitcoin have fallen more than 70% this year, significantly reducing the value of the Trump family’s ownership in the company.
American Bitcoin Hit by Crypto Mining Slowdown
American Bitcoin was launched in 2025 through a partnership with Hut 8, with the company focusing on two primary strategies:
- Large-scale Bitcoin mining
- Building a long-term Bitcoin treasury
The venture attracted significant attention because of its backing by Eric Trump and Donald Trump Jr., as well as its ambition to become one of North America’s leading Bitcoin mining companies.
However, the recent decline in Bitcoin prices has significantly reduced mining profitability across the industry, placing pressure on companies whose valuations depend heavily on cryptocurrency prices and future growth expectations.
Around $600 Million in Family Wealth Erased
According to recent market estimates, the Trump family’s stake in American Bitcoin has lost roughly $600 million in value from earlier highs.
The decline reflects a steep drop in American Bitcoin’s share price rather than realized losses through asset sales.
Earlier in the company’s public market debut, the Trump family’s holdings were valued at well over $1 billion. Since then, the prolonged weakness in crypto-related equities has sharply reduced that valuation as investors moved away from high-risk digital asset stocks.
Stock Under Pressure
American Bitcoin recently implemented a 1-for-15 reverse stock split, reducing its outstanding shares from approximately 1.09 billion to around 73 million.
While reverse stock splits do not change a company’s overall market value, they are often used to increase a stock’s per-share price and maintain exchange listing requirements or improve market perception.
Despite the restructuring, shares continued to face heavy selling pressure as the broader cryptocurrency market remained weak.
Bitcoin Mining Industry Faces Challenging Conditions
American Bitcoin’s struggles mirror those of many publicly traded mining companies.
Several factors have weighed on the sector, including:
- Lower Bitcoin prices reducing mining revenue.
- Higher network mining difficulty.
- Increased competition among industrial miners.
- Elevated electricity and infrastructure costs.
- Reduced investor appetite for crypto-related equities.
Although Bitcoin mining remains profitable for efficient operators, shrinking profit margins have forced many companies to cut costs, seek new financing, or reconsider expansion plans.
Eric Trump Remains Optimistic
Despite the sharp decline in the company’s market value, Eric Trump has publicly defended American Bitcoin’s long-term strategy.
According to recent statements, he emphasized that the company continues to:
- Operate with a reported 52% mining profit margin during the first quarter.
- Continue accumulating Bitcoin for its treasury.
- Maintain relatively low operating costs compared with many competitors.
American Bitcoin currently holds more than 8,000 BTC on its balance sheet, reflecting its strategy of combining Bitcoin mining with long-term Bitcoin accumulation.
Paper Losses vs. Realized Losses
Financial analysts note that the reported $600 million decline represents a reduction in the market value of the Trump family’s ownership rather than realized investment losses.
Unless shares are sold, these losses remain unrealized and could recover if cryptocurrency prices and mining company valuations improve.
Because American Bitcoin’s valuation is closely linked to Bitcoin prices, future performance will likely depend on:
- Bitcoin market recovery
- Mining profitability
- Institutional demand for Bitcoin
- Investor sentiment toward crypto equities
Broader Crypto Market Pressure
American Bitcoin’s decline comes during a difficult period for the cryptocurrency sector.
Several major crypto-related companies have experienced substantial valuation declines as Bitcoin remains well below its previous all-time high. Investors have also become more cautious toward firms whose business models rely heavily on digital asset appreciation.
The downturn has affected not only miners but also corporate Bitcoin treasury companies, crypto exchanges, and blockchain infrastructure firms.
Looking Ahead
While American Bitcoin has suffered a significant decline in market value, company executives continue to express confidence in the long-term outlook for Bitcoin mining and digital assets.
If Bitcoin prices recover and mining economics improve, the company’s valuation could rebound. However, until market conditions stabilize, American Bitcoin is expected to remain closely tied to broader trends in the cryptocurrency market and investor sentiment toward crypto-focused public companies.
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