Key takeaways:
- Eric Trump’s co-owned Bitcoin mining firm, American Bitcoin Corp (ABTC), witnessed a 95% downtrend in its stock.
- Eric Trump personally lost his $600 million stake in the company.
- The shift of investors to more profitable electricity-based businesses, such as AI data centres, acted as the primary cause of the downfall.
- Despite the plunge, Erick Trump is optimistic about a reversal, due to his long-term plans for the firm.
American Bitcoin Corp (ABTC), a Bitcoin mining and treasury firm co-founded by Eric Trump and Donald Trump Jr., has been experiencing a severe downtrend in its stock price. Following the surge based on the Nasdaq listing in September 2025, ABTC has collapsed more than 95% so far, erasing $600 million from Eric Trump’s stake.
What Triggered ABTC’s Decline?
The primary reason for ABTC’s decline is its commitment to a pure Bitcoin mining strategy, in contrast to competitors’ AI data center-based strategies. While both models convert electricity into profit, there is a significant difference in valuation. Generally, AI infrastructure generates $1,600–$4,000 per megawatt-hour (MWh) by effectively monetizing electricity, compared to $80–$151 per MWh for Bitcoin mining.
This huge difference in margin forced investors to favor ABTC’s competitors, resulting in a 60% transition of stocks of miners to AI in mid-2026. Additionally, the ongoing bearish phase of Bitcoin, its recurring high volatility, and the regulatory uncertainty affected ABTC.
Eric Trump Defends American Bitcoin Corp’s Long-Term Strategy Despite the Plunge
On July 7th 2026, Eric Trump announced via X that American Bitcoin Corp has reached the 8,000 BTC mark. He added that the firm will continue stacking more Bitcoin. Eric Trump aims for a long-term strategy for ABTC, and the short-term bearish phase is expected to reverse soon.
If Bitcoin’s ongoing sideways movement breaks to new heights, we will likely witness ABTC thriving. It will naturally increase the mining rewards and overall participation. At present, BTC is at $64,174, witnessing a 2.78% surge this week. However, it is nearly 50% down from the all-time high of $126K it achieved 9 months ago.
What’s Next For Crypto-based Stocks?
In addition to ABTC, Michael Saylor’s Strategy (MSTR) also witnessed losses in recent times. As the largest Bitcoin-holding company, Strategy plans to add more Bitcoin to its portfolio that currently holds 847,363 BTC. All crypto-based publicly traded companies and ETFs are expecting a bull run for Bitcoin soon.
The anticipated approval of the CLARITY Act, the upcoming reveal of Strategic Bitcoin Reserve Blueprint (Before 22 July 2026), and the accumulation targets of major corporates are the positive catalysts that could ignite another bull run for BTC. However, as a highly volatile asset, the unpredictable nature of BTC makes retail investors extremely cautious.
The Bottom Line
Eric Trump’s loss via American Bitcoin Corp (ABTC) is considered by various investors and finance experts as a short-term downtrend rather than the beginning of a downward spiral. Meanwhile, the Trump family together generated $1.4 billion through crypto businesses in 2025. According to the revenue report, the earnings from crypto businesses were more than the Trump family’s revenue from real estate and stocks combined. Despite Eric Trump’s losses, the family remains one of the largest beneficiaries of the crypto industry.
Also Read: SEC Crypto Regulation Update: The Biggest Changes Startups Should Watch This Month