A Bet on Cryptocurrency Cost Eric Trump More Than $600 Million — Bloomberg
Eric Trump, co-founder of American Bitcoin and son of U.S. President Donald Trump, has lost more than $600 million in market value of his stake in the company over the past ten months. Bloomberg reported this, attributing the decline to the sharp drop in the company’s stock price amid a prolonged downturn in the cryptocurrency market.
American Bitcoin was established as a company focused on mining and accumulating Bitcoin, with the expectation of profiting from the cryptocurrency’s rising value. However, this strategy proved unsuccessful after the digital asset market entered a downturn.
At the same time, investors increasingly shifted their funds to mining companies that were able to repurpose their infrastructure into data centers for artificial intelligence systems. American Bitcoin remained focused exclusively on the cryptocurrency business, which negatively impacted its market valuation.
According to Bloomberg, the company’s shares have lost more than 95% of their value compared to their all-time high. Due to the sharp drop in market capitalization, the market value of Eric Trump’s stake has fallen by more than $600 million.
To maintain its listing on the Nasdaq, American Bitcoin conducted a 1-for-15 reverse stock split this week. Despite this move, the company’s stock price hit a new all-time low on Wednesday, indicating that significant pressure from investors remains.
Source: Bloomberg
Earlier, the price of Bitcoin, the world’s most popular cryptocurrency, fell to its lowest level in the past 21 months, reaching $57,742.
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