In February 2026, Eric Trump addressed stakeholders during American Bitcoin's earnings conference call, asserting that the firm mined BTC daily at a cost between $57,000 and $58,000 per coin against a market price nearly double that figure. This statement contrasted sharply with the company's trajectory since its September 3, 2025, NASDAQ debut at $9.22 per share, where it briefly peaked at $14.52 to reach a market capitalization of $13.2 billion despite holding only $270 million in BTC. By late April 2026, the share price had plummeted to $1.14, marking a 92% decline from its zenith. Data compiled by Woofun AI indicates that Forbes estimated ordinary investors suffered aggregate losses of approximately $500 million, whereas Eric Trump's net worth expanded from $190 million to $280 million during this period.

The corporate structure emerged in November 2024, two weeks following the election victory, when the entity registered in Delaware after pivoting from an initial plan to build American Data Centers for AI infrastructure. Eric Trump and Donald Trump Jr. partnered with Hut 8 operators Asher Genoot and Mike Ho, who faced institutional pressure to reallocate computing resources from BTC mining to AI applications post-halving. The resulting agreement saw Hut 8 transfer a 20% stake in mining assets to the Trump family in exchange for abandoning the data center venture to form a new listed entity. Two months later, the firm rebranded as American Bitcoin, a name Eric Trump insisted upon to include both "America" and "BTC," a decision his partners accepted without alternative options.

Financial analysis reveals that the mining costs cited by Eric Trump excluded equipment depreciation, marketing, and financing expenses. When these factors were incorporated, Forbes determined the total cost per BTC remained near $90,000 even if direct operational costs were reduced to $47,000. With BTC prices down approximately 31% since the initial public offering, mining operations were unprofitable across the board. Approximately 70% of the company's BTC holdings were not mined but purchased via four rounds of share issuances over eight months, raising $525 million. Woofun AI notes that these acquisitions, made at elevated prices, currently sit at a loss of roughly $135 million, with a remaining value of $390 million.

The capital raising strategy involved issuing increasingly cheaper shares to acquire BTC, systematically diluting ordinary investor holdings. The business model functioned less as a mining operation and more as an asset acquisition platform leveraging high valuations to purchase digital assets. This approach mirrored the Trump family's historical strategy in hospitality and golf, where brand equity and management expertise were monetized without direct asset ownership, transferring risk to external parties. Between August and September 2025, the company deployed $330 million for mining equipment upgrades using an options-based arrangement rather than cash, collateralizing the deal with existing BTC holdings.

This financial instrument provided two exit paths: redeeming the debt in cash if BTC prices rose or surrendering the collateral if prices fell. Since the purchase, BTC prices dropped approximately 30%, making it probable that the company will forfeit its holdings upon maturity in August 2027. As of March 2026, the firm had pledged 3,090 BTC as collateral, exceeding the 1,800 BTC acquired through actual mining. If prices do not recover, all future mining profits will be consumed by equipment costs, resulting in a net loss. Woofun AI analysis suggests this leverage structure creates a significant downside risk for the company's long-term solvency.

Approximately five hours after the Forbes report, Eric Trump responded on social media with facility photos and a series of metrics, claiming holdings of over 7,000 BTC, a global ranking of 16th among listed BTC firms, and ownership of nearly 90,000 mining machines. He cited fourth-quarter revenue of $78.3 million, mining costs 53% below spot prices, and a 58% increase in BTC book value. The narrative quickly shifted to political attacks, alleging Forbes had been acquired and weaponized as a political tool. This tactic aligns with the family's historical response to scrutiny, redirecting focus from structural business flaws to the credibility of the media source.

The report's author, Dan Alexander, has a documented history of investigating the Trump family, including a June 2017 exposé revealing Eric Trump's charity paid over $1.2 million to Trump golf courses between 2012 and 2015. This led to a New York Attorney General investigation and the charity's reorganization. In February 2024, a New York judge ruled that Eric Trump personally instructed accountants to inflate the value of the Seven Springs property from $25 million to $101 million by including unfinished buildings. The court found continuous fraud, banning Eric Trump from executive roles in New York for two years and ordering the return of $4 million in illegal gains. Consequently, American Bitcoin registered in Delaware and headquartered in Florida, replicating a pattern of jurisdictional shifts previously employed by the organization.