American Bitcoin, a Bitcoin mining company co-founded by members of the Trump family, reported another quarterly loss on Monday, saying it posted a net loss of $57 million in the second quarter, or $0.80 per share. The result marked its third consecutive quarter in the red.
The company’s loss narrowed from $82 million in the previous quarter. Revenue also edged up, rising from $62 million to $67 million. Even so, the prolonged downturn in the crypto market has continued to weigh on the business, and the stock is down about 95% from its post-listing peak.
Bitcoin fell 14% during the same period, directly dragging on the value of the company’s holdings. In July, American Bitcoin carried out a 1-for-15 reverse stock split to keep its Nasdaq listing. The stock opened about 3.3% lower on Monday, then rebounded with the broader market and was up nearly 8% at one point.
Sticking with Bitcoin mining
American Bitcoin was co-founded by Eric Trump and Donald Trump Jr. and is headquartered in Miami. It is one of the few publicly traded crypto companies that still focuses primarily on Bitcoin mining.
That position stands out at a time when many companies in the sector have shifted toward artificial intelligence infrastructure services. American Bitcoin has chosen to keep its identity as a pure-play miner. On the earnings call, Chief Strategy Officer Eric Trump said, “Bitcoin never moves in a straight line, and we never assumed it would when we built this company. We understand the headwinds this industry has faced this year, but our conviction has not changed.”
As of June 30, the company held about 8,000 BTC, up roughly 14% from the first quarter. Still, spot Bitcoin traded at about $63,150 on Monday, down around 45% from a year earlier, extending the pressure on the valuation of the company’s assets.
Drawing a line with digital asset treasury firms
Since Bitcoin surged after the U.S. presidential election, a growing number of companies have described themselves as digital asset treasury companies and moved to accumulate Bitcoin. American Bitcoin has often been grouped into that category by the market, but Eric Trump pushed back on the label.
He said, “What bothers me a bit is that we are put in the same category as treasury companies, those stagnant DATs that can only buy Bitcoin and other cryptocurrencies at market prices. That is fundamentally different from us. Our advantage is that we are not buying at market prices. Our mining cost is about half of the market price.”
The company said its mining efficiency has continued to improve despite market headwinds, and that its computing power scale is still expanding.
Part of the Trump family’s broader crypto footprint
American Bitcoin is one of several crypto-related businesses tied to the Trump family. That broader footprint also includes the decentralized finance platform World Liberty Financial.
Earlier financial disclosure documents showed that Trump earned at least $1.4 billion from crypto-related businesses last year, making him one of the biggest beneficiaries in the U.S. crypto sector.
For investors, American Bitcoin’s string of losses and the deep decline in its stock price point to the risks of a strategy centered on Bitcoin exposure alone. With divisions across the industry becoming more pronounced, the market has yet to decide whether miners can rely on cost advantages to make it through a bear cycle.