American Bitcoin Corp. (Nasdaq: ABTC), the Bitcoin mining and accumulation company co-founded by Eric Trump, has lost more than 95% of its value since reaching a record high shortly after its public debut. The collapse has erased over $600 million from the market value of Trump’s stake in roughly 10 months, highlighting the risks of combining a volatile digital asset treasury with a highly leveraged public-market valuation.
The shares reached another record low on Wednesday after the company completed a 1-for-15 reverse stock split. American Bitcoin said the transaction was primarily intended to lift the price of its Class A shares and maintain compliance with Nasdaq’s minimum bid requirement. Split-adjusted trading began on July 6, reducing the company’s issued share count from about 1.09 billion to approximately 73 million without changing its underlying value.
Bitcoin Accumulation Continues Despite Share Collapse
American Bitcoin has continued expanding its treasury even as its stock has deteriorated. The company added approximately 500 BTC on Monday, bringing total reserves above 8,000 BTC. At the end of the first quarter, it held about 7,021 BTC, up from roughly 5,401 BTC at the end of 2025.
The company presents its strategy as a combination of Bitcoin mining and direct market purchases. During the first quarter, American Bitcoin mined approximately 817 BTC and acquired another 803 BTC through treasury transactions. Management has emphasized growth in Bitcoin per share and a mining gross margin of about 52%, arguing that the underlying accumulation engine remains effective even during a severe crypto downturn.
However, the financial results also show how strongly the business depends on Bitcoin prices. American Bitcoin reported an operating loss of $118.2 million for the first quarter, including a $117.2 million loss on digital assets. Its net loss was lower at $81.8 million after gains from derivatives and other income partially offset the operating decline.
Reverse Split Highlights Nasdaq Listing Pressure
A reverse split does not improve a company’s revenue, cash flow, or market capitalization. It simply combines existing shares into fewer, higher-priced units. American Bitcoin’s decision therefore addressed the technical requirements of remaining listed but did not resolve investor concerns about falling Bitcoin prices, treasury concentration, and continued operating losses.
The company has also faced a difficult comparison with rival miners that diversified into artificial intelligence and high-performance computing infrastructure. Several competitors have redirected energy capacity and data centers toward AI workloads, creating additional revenue streams as technology companies increase spending on computing power. American Bitcoin has remained focused on mining and accumulating BTC, leaving its valuation more directly exposed to the cryptocurrency’s price cycle.
The stock’s decline illustrates the gap that can emerge between the value of a corporate Bitcoin reserve and the premium investors are willing to assign to the company holding it. Growing the treasury may strengthen long-term exposure if Bitcoin recovers, but it does not guarantee stronger shareholder returns when dilution, operating costs, and market sentiment move in the opposite direction.
American Bitcoin’s more than 8,000 BTC position remains one of the larger corporate holdings in the sector. Still, the 95% share-price collapse and emergency reverse split show that an expanding crypto balance sheet alone may not be enough to support a public company’s valuation during an extended market downturn.
