American Bitcoin Corp., the Bitcoin mining company co-founded by Eric Trump, has lost more than 95% of its value from its peak as investors shifted away from crypto-focused miners and toward companies expanding into artificial intelligence (AI) infrastructure, as reported by Bloomberg. The decline has wiped out more than $600 million from the value of Eric Trump’s stake, according to Bloomberg calculations, and forced the company to carry out a 1-for-15 reverse stock split to maintain its Nasdaq listing.

AI boom changes investor focus

American Bitcoin was built around a simple strategy of mining and holding Bitcoin. But as Bitcoin entered a bear market and demand for AI infrastructure grew, investors began favoring miners that could also use their power, land and computing infrastructure for AI data centers.

The shift has changed how investors value crypto mining companies. Instead of rewarding firms based only on Bitcoin production, investors are increasingly backing companies that can earn revenue from AI as well. American Bitcoin stayed focused on Bitcoin mining, and its shares have fallen more than 95% from their peak. On Wednesday, the stock hit an all-time low.

Rivals gain by expanding into AI

Several US-listed Bitcoin miners have benefited by moving into AI infrastructure. Riot Platforms Inc., Cipher Digital Inc., MARA Holdings Inc. and TeraWulf Inc. have all announced plans to expand into AI-focused data centers. Their shares have gained an average of more than 60% this year, compared with a 77% decline in American Bitcoin’s stock. “Every single name in my coverage is pushing towards HPC (high-performance compute),” said John Todaro, an analyst at Needham & Co to Bloomberg.

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Company shifted from AI plans to Bitcoin mining

American Bitcoin did not start out as a Bitcoin-focused company. Its predecessor, American Data Centers Inc., was launched in February 2025 by Dominari Holdings Inc., an investment bank advised by Eric Trump and Donald Trump Jr. The company initially planned to build AI data centers.

Eric Trump had said the venture was “crucial for the development of AI infrastructure in the United States.” However, the strategy changed just a month later. The company signed a deal with Hut 8 Corp. to receive Bitcoin mining equipment in exchange for an equity stake and an exclusive service agreement. It later merged with Gryphon Digital Mining Inc. and began trading on Nasdaq as American Bitcoin in early September.

Hut 8 controls the AI opportunity

Unlike many of its rivals, American Bitcoin has limited room to expand into AI. The company mainly owns Bitcoin mining machines and Bitcoin holdings. Hut 8, its majority owner, controls the power supply, mining sites, hosting infrastructure and day-to-day mining operations through exclusive agreements. That leaves much of the AI data center opportunity with Hut 8, which has shifted its business toward power infrastructure and multi-billion-dollar AI data center leasing deals. Hut 8’s shares have more than doubled this year.

Company continues to back Bitcoin

American Bitcoin believes remaining focused on Bitcoin will create greater long-term value than shifting to AI. The company argues that as competitors redirect power and capital toward AI, fewer miners will compete on the Bitcoin network. That could reduce mining difficulty and allow companies that remain focused on Bitcoin to earn a larger share of mining rewards.

“We’re seeing hundreds of megawatts from the leading public miners’ shift towards AI,” CEO Mike Ho said during the company’s first-quarter earnings call. That “resulted in the network difficulty dropping about 6% this quarter.” Eric Trump has also ruled out selling the company’s Bitcoin holdings. Speaking on a recent podcast, he said selling them would require circumstances “beyond catastrophic.”

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At the Bitcoin Conference 2026 in Las Vegas, he also defended the company’s long-term strategy, saying, “We are in the greatest period in the history of crypto. Just hold on guys, just hold on.”

Losses continue despite adding Bitcoin

American Bitcoin has continued increasing its Bitcoin holdings despite reporting losses. The company bought another 500 Bitcoin on Monday. In the first quarter, it reported an operating loss of $118.2 million after recording a $117.2 million markdown on the value of its Bitcoin treasury.

Several companies that built large Bitcoin treasuries have struggled as cryptocurrency prices declined. Strategy Inc., led by Michael Saylor, recently outlined plans to sell some Bitcoin after years of saying it would not.

Trump family’s crypto investments under pressure

The company’s struggles also explains the volatility of the Trump family’s crypto investments. President Donald Trump reported at least $1.4 billion in crypto-related earnings last year in his latest financial disclosure. However, many retail investors have suffered losses as Trump-linked crypto tokens and American Bitcoin stock declined.

According to Bloomberg calculations, Eric Trump owns about 6% of American Bitcoin and serves as its chief strategy officer. Donald Trump Jr. is an adviser to the company, though his ownership stake has not been disclosed.

Analysts say Bitcoin recovery will decide the outcome

Analysts say American Bitcoin’s strategy could still pay off if Bitcoin prices recover. However, unlike rivals that have diversified into AI infrastructure, the company remains heavily dependent on the performance of the cryptocurrency.

“From the standpoint of fleet efficiency, fleet size and the ability to produce Bitcoin, the company is very well positioned,” said Mark Palmer, an analyst at Benchmark Co. “The issue, of course, is that the price of Bitcoin needs to be moving up for the business model to work.”