Eric Trump-Linked American Bitcoin Slides After Reverse Stock Split. A Comeback Hinges on a Crypto Rebound.

Eric Trump-linked American Bitcoin (ABTC) was created around a straightforward strategy: Accumulate as much Bitcoin (BTCUSD) as possible while expanding its mining operations. However, that high-conviction approach has come under intense pressure as BTC’s slump over the past several months has sent shares of Bitcoin treasury companies tumbling. The selloff ultimately forced American Bitcoin to conduct a reverse stock split earlier this month, a move intended to preserve compliance with Nasdaq’s minimum bid requirement. Instead of reassuring investors, however, the split has only drawn more attention to the scale of ABTC stock’s decline and the challenges facing the business.

Unlike several major U.S. Bitcoin miners that have shifted portions of their infrastructure toward artificial intelligence (AI), American Bitcoin has remained firmly committed to its original strategy. The company continues to mine Bitcoin, expand its cryptocurrency holdings, and bet that accumulating the asset during a downturn will create greater long-term value than redeploying capital elsewhere.

The key question for investors now is whether this decision to stay the course will eventually prove disciplined — or whether the company's refusal to diversify will leave ABTC stock vulnerable to even deeper losses. Let’s take a closer look.

About American Bitcoin Stock

American Bitcoin is a BTC accumulation and mining company focused on building a large strategic Bitcoin reserve through cost-efficient mining operations and direct Bitcoin purchases. The company operates a capital-light business model, using high-performance mining equipment and infrastructure provided through its partnership with Hut 8 (HUT), its majority shareholder. American Bitcoin’s primary assets are its mining equipment and BTC holdings. It aims to offer investors public-market exposure to Bitcoin while building U.S. Bitcoin infrastructure. The company is backed by Eric Trump and Donald Trump Jr., and its market capitalization currently stands at $374 million.

Shares of the BTC mining and treasury company have slumped almost 79% on a year-to-date (YTD) basis. Bitcoin treasury firms have come under increasing pressure in recent months as Bitcoin’s price has tanked to roughly half of its peak above $126,000 seen in October 2025. For some perspective, Strategy (MSTR) — the pioneer of the corporate Bitcoin treasury model — recently dropped its “never sell Bitcoin” stance in an effort to weather the crypto downturn.

The picture becomes much more interesting when considering the other side of the company’s business: Bitcoin mining. BTC miners based in the U.S. such as Riot Platforms (RIOT), Cipher Digital (CIFR), and MARA Holdings (MARA) repurposed their infrastructure for AI-focused data centers amid a slump in crypto prices, driving their shares sharply higher. As American Bitcoin remained committed to its mining and accumulation strategy, investor sentiment toward ABTC stock soured further. However, investors appear to overlook the fact that the firm may have had little choice, given the nature of its business model. That is because Hut 8 provides the power, sites, hosting infrastructure, and day-to-day mining operations under exclusive service agreements, leaving most of the AI data-center upside with Hut 8.

American Bitcoin Conducts Reverse Stock Split to Avoid Delisting

As American Bitcoin shares cratered more than 95% from their September 2025 peak, the company was forced to conduct a reverse stock split, which took effect earlier this July. A reverse stock split consolidates a company’s existing shares into fewer, higher-priced shares without changing the total value of an investor’s holdings or the company’s market cap.

Under the split, every 15 shares of the company’s Class A and Class B common stock were consolidated into one share. As a result, American Bitcoin’s outstanding share count fell from approximately 1.09 billion to about 73 million, a reduction of roughly 93%. The company said the split was primarily aimed at boosting its share price to meet Nasdaq’s $1 minimum bid price requirement.

Investors often view reverse stock splits negatively, seeing them as an artificial way to lift a share price without addressing a company’s underlying problems. As a result, a stock often falls after a reverse split. That was the case with ABTC stock, which opened on a reverse split-adjusted basis at $8.01 on July 6 but closed the week at $6.13 per share, a decline of more than 23%

Eric Trump Defends American Bitcoin’s Strategy Despite Crypto Volatility

Eric Trump, American Bitcoin’s co-founder and Chief Strategy Officer, said in a post on X last week that despite the volatility in the crypto market, the company continues to stand out by mining at a 52% profit margin in the first quarter, expanding its BTC treasury, and maintaining low operating costs. Trump also highlighted that the company’s Bitcoin holdings now exceed 8,000 BTC.

On a recent podcast, Eric Trump said that American Bitcoin does not plan to follow Strategy’s lead and sell its holdings. “It would have to be beyond catastrophic […] We believe in Bitcoin. Come hell or high water, it would take us a lot, a lot to have to sell our treasury,” he said. The latest move confirms that the company remains committed to its strategy, as it bought 500 BTC on the open market last week.

Meanwhile, Bloomberg estimates that Eric Trump owns approximately 6% of American Bitcoin. The outlet also calculated that ABTC stock’s slump wiped more than $600 million off the market value of his stake over the past 10 months. Donald Trump Jr., who serves as an adviser to American Bitcoin, also holds a stake in the company, although its size has not been disclosed.

American Bitcoin’s Bull Case Depends on a Bitcoin Rebound

As with all Bitcoin treasury companies, the only thing that really matters for ABTC stock is where Bitcoin’s price goes next. Many investors believe BTC is nearing the bottom of its current cycle. With that, if the cryptocurrency recovers to its previous highs or at least climbs back above $100,000, American Bitcoin’s commitment to its mining and gathering strategy could ultimately pay off.

American Bitcoin’s executives have argued that Bitcoin itself will ultimately generate the strongest returns and that accumulating it during downturns will create more value than deploying capital elsewhere. The company has also argued that its competitors’ shift toward AI could strengthen its position over time. Essentially, as fewer machines remain dedicated to securing the Bitcoin network, mining difficulty declines, allowing those that continue mining to earn more Bitcoin.

Putting it all together, American Bitcoin’s success will depend on whether its long-term conviction in Bitcoin proves justified. A sustained recovery in the crypto could provide meaningful upside for ABTC stock. At the same time, if Bitcoin’s price remains under pressure, the company’s heavy exposure could lead to further losses for the stock.