The value of Eric Trump's stake in Bitcoin mining company American Bitcoin has fallen by more than $600 million over the past 10 months. The decline follows a drop of more than 95% in the company's share price, driven by weaker cryptocurrency markets and investors shifting capital toward artificial intelligence-related businesses.
American Bitcoin was built around a strategy of mining and accumulating Bitcoin. However, as conditions in the cryptocurrency market deteriorated, the company's stock came under heavy selling pressure, Bloomberg reported.
American Bitcoin share price. Source: TradingView.
According to analysts, investors have increasingly favored mining companies capable of repurposing their energy and computing infrastructure to build AI data centers.
Earlier this week, American Bitcoin completed a 1-for-15 reverse stock split to maintain its Nasdaq listing. Even after the consolidation, the shares fell to a new all-time low.
Company sticks with its Bitcoin strategy
Unlike many of its peers, American Bitcoin has refused to change its long-term strategy. Management continues to focus on mining and accumulating Bitcoin, arguing that the cryptocurrency will generate the strongest long-term returns.Chief Executive Officer Mike Ho said the industry's shift toward AI infrastructure has already reduced the Bitcoin network's mining difficulty by about 6%. In his view, that should allow the remaining miners to produce more Bitcoin.
The company also believes that the industry's migration toward AI could ultimately benefit miners that remain focused on Bitcoin by reducing competition for block rewards.
Rivals shift toward AI
While American Bitcoin remains committed to its original strategy, several publicly traded mining companies are expanding into AI data center infrastructure.Riot Platforms, Cipher Digital, MARA Holdings, and TeraWulf have all announced projects related to high-performance computing (HPC). According to Bloomberg, their shares have gained an average of more than 60% since the beginning of the year, while American Bitcoin stock has fallen about 77%.
Despite the company's sharp decline in value, Eric Trump continues to support its strategy publicly. In a recent podcast, he said the company would sell its Bitcoin holdings only under "catastrophic circumstances."
Earlier this week, American Bitcoin also purchased an additional 500 BTC.
Meanwhile, MARA Holdings announced plans to acquire a 1,200-acre site in Texas with up to 2 gigawatts (GW) of potential power capacity. Once completed in 2028, the project could increase the company's total available capacity to approximately 4.8 GW.
Earlier, TeraWulf announced a 20-year agreement with Anthropic to host AI infrastructure at a new data center in Kentucky. The company expects the contract to generate about $19 billion in revenue while gradually reducing its dependence on Bitcoin mining.
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