American Bitcoin Shares Sink Over 90% After IPO, Outside Investors Down More Than $200M

American Bitcoin Corp. has erased more than $200 million in value for outside investors since listing on Nasdaq, even as Eric Trump's restricted holding remains worth about $70 million. ABTC shares have fallen more than 90% from post-IPO highs near $14.50. The company went public on September 3, 2025, benefiting early on from enthusiasm tied to its Trump-family branding and a crypto market eager for names with even indirect White House proximity. Eric Trump is estimated to hold roughly 7.5% to 9% of the company. Shortly after the Nasdaq debut, the combined stake held by Eric Trump and Donald Trump Jr. was reportedly valued at more than $1.5 billion. Even after the steep selloff, Eric Trump's position alone is still valued around $70 million. Founders received shares at an effectively zero cost basis, unlike retail buyers who entered near $14. Losses have widened as the company expands its Bitcoin strategy. American Bitcoin posted a net loss of $82 million for the first quarter of 2026 on revenue of $62 million. Results were weighed down by a $117 million impairment charge tied to digital-asset valuations. As of March 31, 2026, the company held about 7,021 BTC, up 30% from the end of 2025. To build that position, American Bitcoin has relied on ongoing share issuance, increasing dilution risk for existing holders. Hut 8 Mining owns 80% of American Bitcoin, with the Trump family controlling the remaining 20%. Investors buying ABTC in the open market have little influence over how the company finances its Bitcoin accumulation. In December 2025, the stock fell 51% in a single session, a move linked to lockup expirations that released newly tradable shares. American Bitcoin was founded by Eric Trump and Donald Trump Jr. in March 2025, and early trading momentum carried the stock to roughly $14.50 in the days and weeks after the IPO. The scale of the drawdown stands out: losses exceeding $200 million underscore how quickly sentiment-driven celebrity-crypto trades can unwind, while the remaining value of insider stakes highlights the structural advantages held by founders. For shareholders, dilution remains a central issue. With roughly 1 billion shares outstanding and additional issuance continuing to fund Bitcoin purchases, any rebound in Bitcoin's price would be spread across a growing share count, limiting per-share upside. The first-quarter figures also imply the company spent $1.32 for every $1 of revenue. The $117 million impairment further illustrates a key risk for Bitcoin-treasury firms: accounting rules can force sizable write-downs when Bitcoin trades below purchase cost, even if no coins are sold.