American Bitcoin, a mining company tied to Eric Trump, listed with a valuation of $13.2 billion despite limited Bitcoin reserves.

Share decline and investor losses

Since the listing, shares have fallen by 92%, resulting in estimated retail investor losses of about $500 million, reports Forbes.

Assets at listing

At the time of the public offering the company held approximately ~$270 million in Bitcoin, a small fraction of the stated market valuation.

Mining economics

Operationally, American Bitcoin’s reported mining cost approaches ~$90 000 per BTC, making the standalone mining margin unprofitable under current assumptions.

Instead of covering reserves through production, the company has primarily raised funds by selling equity and converting proceeds into Bitcoin holdings.

Funding structure and disclosures

Public disclosures indicate a substantial portion of the firm’s reserves were assembled using proceeds from equity offerings rather than sustained mining output.

Market implications

Analysts note that a mismatch between headline valuation and asset backing can amplify volatility and erosion of retail investor capital over timeframes.

Forbes provided the loss estimate and coverage of the company’s share-price decline without assigning responsibility for investment decisions.