Eric Trump Bitcoin Venture Collapse Investors Lose $500M While Insiders Profit

Reports claim a bitcoin-mining company tied to Eric Trump (American Bitcoin, ABTC) inflicted roughly $500 million in investor losses after its market cap plunged about 92% from $13.2B to $1.24B and the stock has fallen over 90% since its NASDAQ listing. Company co-founders disputed the coverage, citing operational metrics—28 exahash capacity, ~90,000 miners, ~7,000 BTC in treasury—and Q4 revenue of $78.3 million (up 22% QoQ). Coverage highlights a divergence between investor outcomes and the firm’s reported operational scale and balance-sheet bitcoin holdings. Market impact centers on heavy shareholder losses, collapsing market valuation, and reputational risk for a publicly traded bitcoin-mining operator, with potential knock-on effects for crypto mining equities and investor confidence.