Forbes: American Bitcoin Investors Lost $500M While Eric Trump Grew Wealthier

Shares plunged 92% since Nasdaq debut

Mining company American Bitcoin, which went public on Nasdaq in September 2025 with a $13.2 billion valuation, has cost retail investors approximately $500 million in losses, according to Forbes. Meanwhile, Eric Trump's personal fortune grew from roughly $190 million to $280 million — without him investing any of his own money into building the business.

Since the listing, the company's stock has collapsed by 92%.

Why this matters

The American Bitcoin saga exposes the risks retail investors face when buying into companies carried by high-profile names rather than sound fundamentals. The case illustrates how a model built on issuing shares and purchasing Bitcoin with the proceeds can destroy shareholder value while enriching insiders. It also raises questions about transparency in the economics of publicly traded mining operations.

True mining costs far exceed public claims

Eric Trump had publicly stated that American Bitcoin mines BTC at roughly $57,000–$58,000 per coin — nearly half the market price at the time. Forbes clarified that this figure covers only operational costs for running the equipment. When factoring in hardware purchases, marketing, depreciation, and other expenses, the all-in cost reaches approximately $92,000 per BTC.

Currently, operational costs have dropped to around $47,000, but the full production cost remains near $90,000. Bitcoin is trading at approximately $77,000.

Forbes also highlighted the structure of the deal with Hut 8. American Bitcoin gained access to mining equipment, while Hut 8 retained the data centers, real estate, operational management, and part of the leadership team. According to the annual report, American Bitcoin had just two full-time employees.

Pledged Bitcoin at risk of liquidation

In August–September 2025, the company purchased ASIC miners worth approximately $330 million — not with cash, but by pledging Bitcoin with the option to choose the settlement method. If BTC price rose, the company could pay in cash and keep its coins; if it fell, the coins would go to the supplier.

After the deal closed, Bitcoin dropped roughly 30%. Forbes estimates that if current price trends persist, American Bitcoin will lose its 3,090 pledged BTC — despite having mined only 1,800 BTC in total. The options expire around August 2027, and if prices don't recover, all mined cryptocurrency will effectively go toward paying for equipment.

70% of Bitcoin purchased through share sales

Forbes reports that approximately 70% of American Bitcoin's cryptocurrency holdings were not mined but purchased on the open market using proceeds from stock issuances. After going public, the company aggressively diluted shareholders:

• Within 27 days of listing — 11 million shares sold for $90 million, approximately 725 BTC acquired
• Early October through mid-November — 7 million shares for $44 million
• Late November, amid falling BTC prices — 47 million shares for approximately $106 million
• January 1 to March 25, 2026 — 84 million shares for $111 million, approximately 1,430 BTC purchased

From inception through the end of March, American Bitcoin spent roughly $525 million on cryptocurrency now worth approximately $390 million. Forbes calculates the company has "burned" about $135 million in shareholder capital.

The firm's core business model is essentially built on "arbitrage" between its inflated market valuation and buying Bitcoin through equity issuance. Forbes linked investor appetite for the company's stock partly to the Trump family brand.

Eric Trump's response and community reaction

Following the publication, Eric Trump fired back, calling Forbes a "political weapon" and an "embarrassment to journalism":

"Just over a year ago, American Bitcoin did not exist. […] Today we hold over 9,000 Bitcoin and stand as the 16th largest public Bitcoin company in the world, powered by a fleet of 90,000 miners." — Eric Trump (@EricTrump), original post

The crypto community responded with skepticism. Some noted that Trump simply didn't like the numbers presented in the investigation. Others called on him to address the collapse of American Bitcoin shares, the WLFI token, and the presidential family's meme coins.

"Ok, so you mined 500 BTC in a year (which btw is impossible), but where did the 7,000 BTC on the balance sheet come from?" — asked one user.

In March, American Bitcoin announced it was expanding its fleet by 11,298 ASIC miners.