Trump-backed American Bitcoin reports $59M Q4 loss
Trump-backed American Bitcoin Corp. reported a $59 million Q4 loss Thursday as a crypto selloff erased nearly 90% of its market value since September and led to $227 million in annual write-downs.
American Bitcoin Corp., a Miami-based miner backed by the Trump family, reported a $59 million net loss for the fourth quarter on Thursday. The stock has fallen about 90% since a September high during a broad crypto selloff.
The results reflect the company’s mine-and-hold approach, promoted by co-founder Eric Trump. American Bitcoin keeps the coins it produces rather than selling into price strength or diversifying operations. That stance lifted results when Bitcoin traded above $126,000 earlier in the year and reduced value with the token near $70,000.
For the full year, the company recorded $227 million in unrealized losses from marking down its Bitcoin holdings. “With Bitcoin steeply drawn down from the highs, the retention strategy can amplify losses,” according to Matthew Kimmell, a digital asset analyst at CoinShares. “The inventory loses value on a mark-to-market basis and investors can begin pricing in balance sheet stress before it appears in operations.”
American Bitcoin shares saw an intraday plunge of about 50% on Dec. 2. Despite the downturn, fourth-quarter revenue rose 22% from the prior quarter, supported by earlier price strength and mining output.
Rivals have taken different paths. MARA Holdings and Riot Platforms have begun converting parts of their sites to artificial intelligence data center infrastructure. Other miners, including Cipher Mining and TeraWulf, have been more active in selling coin reserves and, in some cases, mining sites to manage price exposure and fund new projects.
American Bitcoin’s current focus differs from its origin. American Data Centers Inc., an entity backed by Donald Trump’s sons, was initially designed as an AI infrastructure provider before being folded into what became American Bitcoin.
Other Trump-linked crypto ventures have declined. World Liberty Financial, a decentralized finance platform that hosted Wall Street executives at Mar-a-Lago this month, has seen a 65% slide in its token since its September launch. A Trump-themed memecoin has dropped 72% since it began trading in March.
American Bitcoin’s model produces higher reported results when prices rise and records accounting losses when they fall. Management has pointed to market conditions as a key factor for near-term performance.
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