Article by Bao Yilong, Wall Street View
American Bitcoin recorded another quarterly loss as the crypto market's bearish trend continues to erode its asset value, forcing the company to implement a stock split to maintain its Nasdaq listing status.
On Monday, August 3, American Bitcoin, a bitcoin mining company co-founded by the Trump family, reported a net loss of $57 million for the second quarter, or 80 cents per share, marking its third consecutive quarter of losses.
Although the quarterly loss narrowed from $82 million in the previous quarter and revenue increased slightly from $62 million to $67 million, the ongoing bear market has caused the company’s stock price to decline by approximately 95% from its peak at listing.
At the same time, Bitcoin's price fell by 14%, directly reducing the value of the company's holdings.
In July this year, the company was forced to implement a 1-for-15 reverse stock split to maintain its Nasdaq listing eligibility. On Monday, the stock opened down about 3.3% but later rebounded in line with broader market trends, rising nearly 8% at one point.
Under bear market pressure, mining companies remain committed to the Bitcoin sector.
American Bitcoin, co-founded by Eric Trump and Donald Trump Jr., is headquartered in Miami and is one of the few publicly traded companies in the cryptocurrency industry that continues to focus exclusively on Bitcoin mining.
Amid the industry's widespread shift toward becoming AI infrastructure providers, the company has chosen to maintain its pure mining identity.
Eric Trump, Chief Strategy Officer, said on the post-earnings call: "Bitcoin has never moved in a straight line, and we never assumed it would when we built this company. We understand the headwinds this industry has faced this year, but our conviction has not changed."
As of June 30, the company’s Bitcoin holdings amounted to approximately 8,000 BTC, representing a roughly 14% increase from the first quarter. However, Bitcoin’s spot price closed at approximately $63,150 on Monday, down about 45% year-over-year, continuing to pressure the company’s asset valuation.
Distance ourselves from "Digital Asset Treasury Company" and emphasize our mining cost advantages.
Since Bitcoin's price surged following the U.S. presidential election, numerous companies have announced they are positioning themselves as "digital asset treasury companies" and are competing to purchase Bitcoin.
Although American Bitcoin is also categorized by the market in this group, Eric Trump has clearly expressed his dissatisfaction. He said: “What bothers me is that we’re being grouped together with Treasury companies—those stagnant DATs that can only buy Bitcoin and other cryptocurrencies at market price. There’s a fundamental difference between them and us. Our advantage is that we don’t buy at market price; our mining cost is roughly half the market price.”
The company stated that, despite market headwinds, its mining operational efficiency continues to improve and its hashing power capacity is expanding.
Components of the Trump family's cryptocurrency ecosystem
American Bitcoin is one of several cryptocurrency initiatives under the Trump family. The Trump family’s cryptocurrency portfolio also includes projects such as the decentralized finance platform World Liberty Financial.
According to previously disclosed financial filings, Trump earned at least $1.4 billion from his cryptocurrency-related businesses last year, making him one of the highest-earning individuals in the U.S. cryptocurrency sector.
For investors, American Bitcoin's sustained losses and sharp stock price drawdowns highlight the high-risk nature of strategies that rely solely on Bitcoin exposure.
Amid increasing industry differentiation, it remains to be seen whether miners can leverage their cost advantages to navigate through the bear market cycle.