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The crypto companies associated with the Trump family are taking another hard hit. American Bitcoin Corp., the publicly traded mining company co-founded by Eric Trump, has fallen into a deep slump as the bitcoin market cools and investors increasingly focus on AI infrastructure. According to calculations by Bloomberg, the value of Eric Trump’s stake has fallen by more than $600 million in ten months.
American Bitcoin was built around a simple idea: anyone who owns bitcoin and mines it can make a substantial profit. But the company clung to that pure crypto strategy, while competitors began deploying their expensive infrastructure for data centers focused on artificial intelligence. That shift has hit American Bitcoin’s market value hard. The stock has fallen more than 95 percent from its peak. As a result, the company had to implement a 1-for-15 reverse split this week to remain listed on Nasdaq. On Wednesday, the stock price even dropped to an all-time low. For investors, this is a painful sign that the market has little confidence left in companies that rely exclusively on Bitcoin, without an additional revenue model such as AI services or computing power rentals.
Ironically, the Trump project began with precisely that broader ambition. The company was launched in February 2025 as American Data Centers, with plans for a portfolio of data centers. Eric Trump called the development of AI infrastructure in the U.S. “crucial” at the time. A month later, however, the strategy shifted: American Bitcoin opted for mining, acquired equipment from Hut 8, and eventually went public via a reverse merger. While some industry peers benefited from the AI boom, American Bitcoin lagged behind. Companies such as Riot Platforms, Cipher, MARA, and TeraWulf struck deals to lease their infrastructure for high-performance computing and saw their stock prices rise sharply this year. American Bitcoin, on the other hand, continues to focus on hoarding bitcoin, hoping that a price recovery will ultimately justify the strategy.
Meanwhile, the Trump family is investing heavily in crypto, but not without risk. President Donald Trump reported significant crypto income as recently as last year, while retail investors suffered losses on Trump-related tokens and stocks.
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