American Bitcoin Hits Milestone with $504M in BTC Holdings Amid Stock Price Plunge

American Bitcoin Corp., co-founded by Eric Trump and Donald Trump Jr., has reached a milestone in its Bitcoin holdings, but its stock price continues to plummet. The company now holds approximately $504 million worth of Bitcoin, making it the 16th-largest corporate holder of the asset. However, despite this achievement, American Bitcoin's shares have hit an all-time low, erasing over $600 million from Trump's stake.

Competitors that pivoted to AI have averaged 60% gains this year, while ABTC's stock has plunged by 77%. Hut 8 Corp., which provides power and services to American Bitcoin under exclusive agreements, has seen its shares more than double this year following its rebrand around power infrastructure and AI data center leases.

CEO Mike Ho argued that the shift towards AI among competitors is actually helping American Bitcoin by reducing mining difficulty. However, analyst Mark Palmer noted that the price of Bitcoin needs to move up for the company's business model to work.