Kathrine Frich
The corporate crash tells only one side of the story.
When a new technology takes over the market, investors often rush to pick a side. Those who guess wrong often lose billions. Right now, one prominent business family is learning exactly how punishing a stubborn strategy can be.
A massive drop
The mining company American Bitcoin Corp recently watched its stock price plummet by more than 95 percent from its all-time high.
According to Unilad Eric Trump serves as a co-founder and the chief strategy officer for the venture. He originally set out to mine and hold huge amounts of cryptocurrency.
According to calculations by Bloomberg, the sharp market decline has wiped out more than $600 million from his estimated six percent personal stake over the last ten months.
Fighting to survive
The collapse became so severe that the company had to execute a one-for-15 reverse stock split just to keep its spot on the Nasdaq exchange.
This accounting move reduces the number of total shares while artificially boosting the price of the remaining ones. It keeps the business listed, but it does not bring back any lost money.
Things hit a new low on Wednesday. The company’s share price dropped to the bottom of the barrel.
Missing the shift
The digital mining industry has changed completely over the last twelve months. While digital asset prices stalled out, demand for artificial intelligence exploded across the globe.
Many rival firms quickly repurposed their massive data centers to serve AI developers. Investors flocked to those flexible companies.
American Bitcoin stayed focused solely on cryptocurrency. This stubborn approach left the business totally exposed as the broader market moved on without them.
A mixed picture
The corporate crash tells only one side of the story. The wider Trump family still claims massive profits from other digital ventures.
Reuters noted that Donald Trump reported at least $1.4 billion in cryptocurrency earnings last year alone. The president also pulled in about $636 million from the $TRUMP meme coin during 2025, according to reports.
Everyday buyers faced a different reality. The New York Times cited data from Nansen showing that roughly two-thirds of the people who bought the meme coin lost money, totaling $3.81 billion in combined losses.
Speaking to CNBC earlier in July, the president distanced himself from the daily operations. “I could know about it… I didn’t, I mean, there’s nothing illegal, there’s nothing wrong with it. I could know,” he said.
Sources: Bloomberg, Reuters, CNBC, UNILAD
