Key Takeaways:
American Bitcoin Corp shares lost more than 95% from their peak, erasing $600 million from Eric Trump's stake as capital rotated from mining to AI.
"Traditional Bitcoin mining without AI diversification is becoming a tough sell to institutional investors," said Nina Volkov, crypto analyst at Edgen. "The market is rewarding miners who can repurpose their infrastructure for high-performance computing."
The company, which trades under the ticker ABTC on the Nasdaq, executed a 1-for-15 reverse stock split to maintain its listing as shares fell about 77% year-to-date. American Bitcoin reported an $81.8 million net loss in the first quarter, driven largely by a decline in the value of its Bitcoin holdings. Despite the stock collapse, the firm continues to accumulate Bitcoin and now holds roughly 8,000 BTC worth about $504 million, making it the 16th-largest corporate Bitcoin holder, according to BitcoinTreasuries data. The company's Bitcoin treasury alone exceeds its current market capitalization, highlighting the disconnect between its stock price and its digital asset holdings.
The selloff reflects a broader rotation in the mining sector as Bitcoin prices entered a bear market, falling to around $63,000 as of early July. Rivals including Riot Platforms, Cipher Mining, MARA Holdings and TeraWulf have expanded into AI data centers, leasing their computing infrastructure to companies building large language models and other AI workloads. Their shares have gained more than 60% on average this year. IREN, another miner pivoting to AI, saw its AI Cloud Services revenue grow 94.2% quarter-over-quarter in its fiscal third quarter, targeting a $3.7 billion annualized revenue run rate by the end of 2026, according to its earnings report. Most investors still view IREN as a Bitcoin miner that accidentally joined the AI space, a perception the company is working to change as it builds out its Horizon data center capacity and secures contracts with major cloud providers.
The $600 million figure represents the decline in market value of Eric Trump's stake, not realized losses from share sales. President Donald Trump separately disclosed more than $1.4 billion in crypto-related earnings last year. American Bitcoin's continued accumulation strategy suggests the firm remains committed to its long-term Bitcoin thesis even as its stock price deteriorates and mining economics face pressure from rising network difficulty and post-halving reward compression. The divergence between miners that have pivoted to AI and those that have not is likely to widen as institutional capital continues to favor the AI narrative over pure-play crypto mining.
This article is for informational purposes only and does not constitute investment advice.
