Investors in the mining firm owned by Trump’s son have lost $500 million, according to Forbes., 2026/04/29 13:11:09

Retail investors in American Bitcoin, a mining firm co-founded by Eric Trump, the son of the U.S. President, have incurred losses of $500 million, according to Forbes.

As reported by journalists, the company went public on the Nasdaq in September 2025 with a valuation of $13.2 billion; however, since then, its stock has plummeted by 92%. During the same timeframe, Eric Trump’s net worth increased from approximately $190 million to $280 million, as he did not invest his own funds into the business’s establishment.

The company indicated that the cost of mining Bitcoin stands at $57,000–$58,000 per coin, which is nearly half of the market price at that time. However, Forbes clarifies that this figure only accounts for operational expenses. When capital expenditures, including equipment, marketing, and depreciation, are factored in, the cost can rise to $90,000–$92,000. Currently, operational costs have decreased to about $47,000, but the total cost remains unchanged.

The publication also highlighted the business structure. Under a deal with Hut 8, American Bitcoin gained access to equipment, while the partner retained control over data centers, infrastructure, and operational management. According to the annual report, the company had only two full-time employees.

Between August and September 2025, American Bitcoin purchased mining equipment for approximately $330 million, using Bitcoin as collateral with the option for payment in various forms. If the price increased, the company could pay for the equipment in fiat currency and retain the cryptocurrency; if it fell, the assets could be transferred to the supplier.

Following the transaction, the price of Bitcoin dropped by around 30%. Forbes estimates that if the current trend continues, the company risks losing the pledged 3090 BTC, while it has mined only about 1800 BTC. If the market does not recover, all mined cryptocurrency may need to be used to pay for the equipment, with deadlines approaching around August 2027.

Additionally, Forbes noted that approximately 70% of American Bitcoin’s crypto assets were acquired not through mining but via stock sales followed by Bitcoin purchases on the market. After its listing, the company actively raised capital: within 27 days, it sold 11 million shares for $90 million and acquired around 725 BTC. In the following months, placements continued—specifically, from October to November, an additional 7 million shares were sold for $44 million, followed by 47 million shares for $106 million. From January 1 to March 25, American Bitcoin sold another 84 million shares for $111 million and acquired about 1430 Bitcoins.

Forbes estimates that from its inception until the end of March, American Bitcoin allocated around $525 million for cryptocurrency purchases, which is currently valued at approximately $390 million. Consequently, the company has effectively “burned” about $135 million of shareholder funds.

The publication pointed out that the firm’s business model largely relies on “arbitrage” between the high market valuation of the company and the acquisition of Bitcoin through additional stock issuance. Interest from retail investors in American Bitcoin’s shares, according to Forbes, was partially linked to the Trump family’s brand. In response to the article, Eric Trump labeled Forbes as a “political weapon” and a “shame of journalism.”

Previously, analysts from the BitcoinTreasuries platform reported that American Bitcoin ranked 16th among publicly traded companies in terms of accumulated Bitcoins.