Forbes has released a detailed investigative report criticizing Eric Trump's Bitcoin venture, American Bitcoin (ABTC), alleging that the company systematically exploited MAGA supporters for arbitrage gains, resulting in severe financial losses for ordinary investors.
Quick Nasdaq Listing Under Political Halo
Founded in 2025, American Bitcoin was listed on Nasdaq within months. The company marketed itself as a leader in the Bitcoin space, leveraging the Trump family brand to attract political fans and retail investors. Forbes' investigation found that the enterprise primarily functioned as an arbitrage vehicle: it raised capital by selling overpriced shares to MAGA followers, then used the proceeds to buy Bitcoin, artificially inflating its own valuation.
Stock Collapse: 92% Plunge, $500M Losses
At its peak, American Bitcoin's market capitalization reached $13.2 billion, making it a crypto market darling. However, the stock price crashed 92% over the following eight months, wiping out approximately $500 million in investor capital. Forbes data indicates that the majority of buyers were MAGA supporters who trusted the Trump family's involvement, believing the project would deliver outsized returns.
Insider Gains: Eric Trump's Wealth Grows While Retail Suffers
In stark contrast to retail investors' losses, Eric Trump's personal fortune increased from $190 million to $280 million — a gain of $90 million. Forbes analysis suggests that Eric Trump and his inner circle sold large stakes during the stock's peak, profiting from what amounts to insider trading. The company's operations were heavily reliant on marketing spin, with actual mining profitability being minimal and unsustainable.
Forbes Questions: Was ABTC a Trump Brand Dumping Scheme?
Forbes posed a sharp question: "Is American Bitcoin a real mining company or a stock dump scheme disguised under the Trump brand, targeting political supporters?" The report questioned the firm's claimed mining margins and argued that the business model essentially amounted to selling overvalued shares to MAGA supporters. It also noted that the company's promotional materials frequently used Trump-like slogans such as "Make Bitcoin Great Again," deliberately stirring investor emotions.
As of this writing, American Bitcoin has not publicly responded to the Forbes report. The incident has reignited concerns about political celebrities entering the cryptocurrency space, reminding investors to differentiate between brand appeal and genuine business value.