Trump Family-Affiliated Miner Suffers Third Straight Quarter of Losses
American Bitcoin, co-founded by Eric Trump and Donald Trump Jr., reported a net loss of $57 million for the second quarter, marking its third consecutive quarterly loss. The company's stock price has fallen cumulatively by about 95% from its peak listing price.
The losses are attributed to the ongoing bear market in the crypto industry, which has dragged down the value of American Bitcoin's holdings. Despite a slight increase in revenue to $67 million, the quarterly loss narrowed only marginally compared to the previous quarter's $82 million loss.
Eric Trump, serving as Chief Strategy Officer, emphasized that Bitcoin never moves in a straight line and that the company's conviction in its strategy has not changed despite industry headwinds. He also highlighted the advantage of American Bitcoin's mining cost being approximately half of the market price, distinguishing it from 'Digital Asset Treasury Companies'.
The company implemented a 1-for-15 reverse stock split in July to maintain its Nasdaq listing status. As of June 30, American Bitcoin held approximately 8,000 coins, an increase of about 14% compared to the first quarter.