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American Bitcoin shares have fallen more than 95% from their peak over the past 10 months, erasing over $600 million from Eric Trump's roughly 6% stake, according to Bloomberg. The company executed a 1-for-15 reverse stock split to maintain its Nasdaq listing and hit a record low on Wednesday.
Why it matters
The collapse frames the structural problem every BTC treasury vehicle now faces: the equity is supposed to price bitcoin at a premium, but the multiple has compressed to a persistent discount across the peer set. A reverse split resets the share count but does not reset the market's read on the gap between treasury NAV and the stock. Trump co-founded the company, which merged with Hut 8 in March, alongside his brother Donald Trump Jr.
Market impact
American Bitcoin continues to mine and accumulate, adding 500 BTC on Monday to push holdings above 8,000 BTC. But Q1 told the harder story: a $118.2 million operating loss driven by a $117.2 million bitcoin impairment. The next read is whether the equity can rebuild any premium as holdings scale, or whether the discount widens with each treasury update.
Source: Bloomberg
Frequently asked questions
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What happened to American Bitcoin's stock?
Shares have fallen more than 95% from their peak over the past 10 months, hitting a record low on Wednesday after a 1-for-15 reverse split to maintain its Nasdaq listing.
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How much of American Bitcoin does Eric Trump own?
Eric Trump holds roughly 6% of the company, a stake that has lost more than $600 million in value through the 95% drawdown, according to Bloomberg.
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Why did American Bitcoin do a reverse stock split?
The 1-for-15 reverse split was executed to keep the stock above Nasdaq's minimum bid price requirement after shares collapsed from their peak.
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How much bitcoin does American Bitcoin hold?
The company added 500 BTC on Monday, pushing total holdings above 8,000 BTC, and continues to mine and accumulate despite the equity drawdown.
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What was American Bitcoin's Q1 2025 result?
American Bitcoin posted a $118.2 million operating loss in Q1, driven primarily by a $117.2 million bitcoin impairment charge on its treasury holdings.
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