American Bitcoin price drops more than 95% from peak

American Bitcoin, the crypto company co-founded by Eric Trump, is experiencing a turbulent period. According to calculations by Bloomberg, the share price has fallen more than 95% from its peak, wiping out over $600 million from the value of the stake held by Eric Trump. That stake amounts to about 6% of the company, built up over the past ten months.

Bitcoin is available at OKX and Bybit.

Reverse split to maintain Nasdaq listing

To prevent the company from being delisted from the Nasdaq, American Bitcoin is implementing a so-called 1-for-15 reverse stock split. Under such a structure, fifteen existing shares are combined into one new share, artificially raising the price per share and allowing the company to meet the exchange’s minimum requirements. On Wednesday, the share price hit an all-time low.

The financial results speak for themselves. In the first quarter, American Bitcoin posted an operating loss of $118.2 million, largely driven by a Bitcoin impairment of $117.2 million. These are significant amounts for a company that has based its entire strategy on Bitcoin, as reported by Bloomberg.

Company continues to accumulate Bitcoin despite losses

Despite the dramatic price decline and heavy losses, American Bitcoin is continuing its Bitcoin strategy unchanged. Last Monday, the company bought another 500 Bitcoin, bringing total holdings above 8,000 BTC. This is striking, especially given the current Bitcoin price of $63.035, down 1.4% in the past 24 hours.

American Bitcoin thus joins the many Bitcoin treasury companies losing market value, but it is striking that this particular company is hit so hard while not adjusting its course. Whether the strategy will bear fruit in the long term depends heavily on the direction the Bitcoin price takes in the coming months.