Forbes Estimates American Bitcoin Investors’ Losses at $500 Million

American Bitcoin enriched Eric Trump while investors lost $500 million, says Forbes.

The mining company American Bitcoin enriched Eric Trump while retail investors lost approximately $500 million, according to Forbes. 

The firm went public on Nasdaq in September 2025 with a valuation of $13.2 billion. Since then, shares have plummeted by 92%. According to the publication, Trump’s fortune increased from about $190 million to $280 million during this period, despite not investing his own funds in the business’s creation.

The Controversial Economics of Mining

Trump claimed that American Bitcoin mines the leading cryptocurrency at approximately $57,000-$58,000 per coin—almost half the market price at that time. Forbes clarified that this figure includes only the operational costs of running the equipment. When factoring in the purchase of machines, marketing, depreciation, and other expenses, the cost rises to $92,000 per BTC. 

Currently, operational costs have decreased to about $47,000, but the total cost remains around $90,000. At the time of writing, the leading cryptocurrency is trading around $77,000. 

Forbes also highlighted the terms of the deal with Hut 8. American Bitcoin gained access to mining equipment, while the other party retained data centers, real estate, operational management, and part of the leadership. According to the annual report, American Bitcoin had only two full-time employees.

Bitcoin Collateral for Equipment

In August-September 2025, the company purchased ASIC miners for about $330 million—not with cash, but by pledging bitcoins with an option on the payment method. If prices rose, they could pay in cash and keep the coins; if prices fell, they would transfer them to the supplier.

Following the deal, digital gold depreciated by about 30%. Forbes believes that if the current trend continues, American Bitcoin will lose the pledged 3090 BTC, despite having mined only 1800 BTC.

If the price does not recover, all mined cryptocurrency will go towards paying for the equipment—the options expire around August 2027.

Most BTC Purchased on the Market

Forbes also claims that about 70% of American Bitcoin’s cryptocurrency came not from mining, but from selling shares and subsequently purchasing coins on the market.

After going public, the company actively issued new shares. Within 27 days of listing, it sold 11 million shares for $90 million and bought about 725 BTC. From early October to mid-November, it sold another 7 million shares for $44 million. In late November, after the bitcoin price fell, American Bitcoin sold 47 million shares for approximately $106 million.

From January 1 to March 25, 2026, the firm sold another 84 million shares for $111 million and acquired about 1430 BTC.

In total, from its founding to the end of March, American Bitcoin spent about $525 million on cryptocurrency, now valued at approximately $390 million. According to Forbes, the company “burned” about $135 million of shareholders’ funds.

The firm’s primary model is based on “arbitrage” between the high market valuation of the company and purchasing bitcoin through share issuance. The publication linked investor interest in American Bitcoin’s shares partly to the Trump family brand.

Reaction

Following the publication, Eric Trump called Forbes a “political weapon” and “an embarrassment to journalism.”

Since being acquired by China, @Forbes has become a political weapon and an embarrassment to journalism.

Just over a year ago, American Bitcoin did not exist. 7 Months and 25 days ago we went public on the NASDAQ. Today we hold over 7,000 Bitcoin and stand as the 16th largest… https://t.co/m7ZD8Pg0F7

— Eric Trump (@EricTrump) April 28, 2026

“Just a year ago, American Bitcoin did not exist. […] Today we own 9000 BTC and are the 16th largest public bitcoin company in the world, relying on a fleet of 90,000 miners,” he wrote. 

The community responded with criticism. Some noted that he simply disliked the figures presented by the publication. Others urged him to comment on the decline in American Bitcoin’s shares, the WLFI token, and the presidential family’s meme coins. 

“Okay, you mined 500 BTC a year (which is, by the way, impossible), but where did the 7000 BTC on the balance sheet come from?” — inquired one user. 

In March, American Bitcoin announced an expansion of its fleet by 11,298 ASIC miners.