Eric Trump's American Bitcoin venture has suffered a catastrophic collapse since going public last year. Its shares have plummeted more than 95% from their September peak, wiping out over $600 million from Eric Trump's stake in just under 10 months, according to Bloomberg calculations.

The company was forced to implement an emergency measure this week: a 1-for-15 reverse stock split aimed at preserving its listing on the Nasdaq exchange. This move is likely a desperate attempt to prevent American Bitcoin from being delisted due to its dwindling market capitalisation.

Eric Trump, who co-founded American Bitcoin and serves as its chief strategy officer, owns approximately 6% of the company's shares. His brother and adviser, Donald Trump Jr., also holds an undisclosed stake in the venture. In the first quarter, American Bitcoin posted a sizeable operating loss of $118.2 million after marking down its Bitcoin treasury by $117.2 million.

The collapse of American Bitcoin can be attributed to its ill-fated decision to double down on mining and accumulating more Bitcoin as the market sank into a bear phase. Meanwhile, rival miners like Riot Platforms, MARA Holdings, and TeraWulf have successfully repurposed their infrastructure for AI data centres, striking deals that have seen their shares climb an average of over 60% this year.

American Bitcoin's fortunes took a turn for the worse in early 2025 when it pivoted from its initial pitch as an AI data centre venture to focus on Bitcoin mining. Despite high-profile backing from investors such as the Scaramucci family, who had poured hundreds of millions into the company before its stock began to unravel, American Bitcoin's shares have continued to plummet, with a decline of around 77% in 2026 alone.

The company shows no signs of changing course, with Eric Trump stating that it would only sell its holdings for reasons "beyond catastrophic". This stance suggests that American Bitcoin is committed to its mining strategy, even as the market continues to deteriorate. As a result, investors are likely to remain cautious about the company's prospects.