Trump Family-Backed Bitcoin Miner Posts Losses for Three Consecutive Quarters, Shares Plummet Over 90% from Peak
American Bitcoin, a bitcoin mining company co-founded by Eric Trump and Donald Trump Jr., reported a net loss of $57 million for Q2, marking its third consecutive quarterly loss. Although the loss narrowed from the previous quarter's $82 million and revenue slightly increased to $67 million, the prolonged crypto bear market has eroded the value of its assets, causing its stock price to fall roughly 95% from its peak. In July, the company executed a 1-for-15 reverse stock split to maintain its Nasdaq listing.
The company holds approximately 8,000 bitcoins, but the declining price of bitcoin, down about 45% year-over-year, continues to pressure its asset valuations. Eric Trump, the chief strategy officer, emphasized the company's commitment to its core mining business, distinguishing it from other firms that simply buy bitcoin at market prices. He highlighted that American Bitcoin's mining costs are approximately half the market price, positioning it as a pure-play miner amid an industry trend toward diversifying into AI infrastructure.
The report underscores the high-risk nature of a strategy concentrated solely on bitcoin exposure. While the company points to improving operational efficiency and growing hash rate, its ability to navigate the bear market relying on its cost advantage remains to be seen. The Trump family has broader crypto interests, with former President Donald Trump reportedly earning over $1.4 billion from his crypto ventures last year.
华尔街日报Вчора 20:21
