American Bitcoin plunges 95% as AI-focused mining rivals surge ahead

American Bitcoin shares plunged more than 95% from their peak, erasing over $600 million from Eric Trump's stake, Bloomberg calculations show.

"The company's single-minded focus on mining and accumulating Bitcoin left it exposed as investors rotated toward miners with the flexibility to repurpose infrastructure for AI-focused data centers," Mark Palmer, an analyst at Benchmark, said.

The decline forced American Bitcoin into a 1-for-15 reverse stock split this week to maintain its Nasdaq listing, with the stock touching an all-time low on Wednesday. The company reported a first-quarter operating loss of $118.2 million, including a $117.2 million markdown on its Bitcoin treasury. It now holds roughly 8,000 BTC, worth about $504 million, making it the 16th-largest corporate Bitcoin holder. The stock has fallen about 77% year to date.

The rout illustrates how quickly the mining sector's center of gravity has shifted. Rivals including Riot Platforms, Cipher Mining, MARA Holdings and TeraWulf have all announced data-center expansion plans tied to AI demand, with their shares gaining more than 60% on average this year. American Bitcoin's strategy may still appeal to investors betting on a Bitcoin rebound, but the model remains highly exposed to crypto prices — and Bitcoin's price needs to rise for the business to work, Palmer said.

AI Demand Reshapes Mining Economics

The divergence between American Bitcoin and its peers reflects a structural shift in how investors value mining companies. Success is no longer determined by who can produce the most Bitcoin, but by who has the flexibility to monetize electricity, land and computing infrastructure for AI workloads, according to Bloomberg.

Hut 8, the company providing American Bitcoin's mining rigs, power, sites and day-to-day operations, has leaned further into power infrastructure and multibillion-dollar AI data-center leases. By contrast, American Bitcoin doubled down on its crypto strategy, adding another 500 Bitcoin on Monday and crossing the 8,000 BTC threshold.

Eric Trump, who serves as the company's chief strategy officer, has seen his roughly 6% stake lose more than $600 million in market value over the past 10 months. Adviser Donald Trump Jr.'s stake has not been disclosed. The losses come even as President Donald Trump reported at least $1.4 billion in crypto-related earnings last year in his latest financial disclosure.

American Bitcoin's ability to maintain its Nasdaq listing now depends on whether Bitcoin's price can recover enough to restore investor confidence in a pure-play mining model that has fallen sharply out of favor. The company added another 500 Bitcoin on Monday, sticking to its strategy even as the market moves in the opposite direction.

This article is for informational purposes only and does not constitute investment advice.