Eric Trump’s Bitcoin Firm Lost $600M in Value — What a Stock Split Really Fixes (and Doesn’t)

American Bitcoin Corp, the mining and Bitcoin-treasury company where Eric Trump serves as Chief Strategy Officer, has watched its stock collapse by 97% since last September, wiping out roughly $600 million of his personal stake, according to a Bloomberg report cited by AMBCrypto. The company was forced into a 1-for-5 reverse stock split on July 2 just to keep its shares listed on Nasdaq — a move that sounds technical but says a lot about how rough this cycle has gotten for corporate Bitcoin bets.

If you own shares in a Bitcoin treasury or mining company, or you’re watching one to decide whether to buy in, this story is worth understanding — because a stock split, reverse or otherwise, changes nothing about what the company actually owns or earns.

Why a “reverse split” doesn’t mean the company is fixed

American Bitcoin’s stock, ticker ABTC, peaked at $217 in September 2025. It has since crashed to a record low of $5.98 — down more than 29% in this past week alone. Nasdaq requires listed companies to keep their share price above $1, and ABTC was sliding dangerously close to that floor.

A reverse split simply consolidates existing shares — in this case, five old shares become one new share — so the per-share price rises on paper without changing the company’s total value. It’s a bit like exchanging five $1 bills for one $5 bill: you’re not richer, the bill just looks different. Another Bitcoin treasury firm, Nakamoto, had to do the same thing recently to avoid getting kicked off the exchange, AMBCrypto notes.

For everyday holders, the lesson is simple: a rising share price after a reverse split is not a sign of recovery. It’s an accounting reset that buys a struggling stock time to stay listed, nothing more.

The company is still buying Bitcoin, though

Despite the stock rout, American Bitcoin actually grew its Bitcoin holdings, from 7,500 BTC to 8,000 BTC. Eric Trump brushed off the share collapse as ordinary “crypto market volatility” and doubled down on the company’s buying strategy. In his words: “Even with crypto market volatility, I want to reiterate how we continue to differentiate ourselves, mining at a 52% profit margin in Q1 and continually adding to our treasury, all while maintaining one of the lowest SG&A ratios in the industry. The stacking continues.”

That’s a real distinction worth knowing: the stock price and the company’s Bitcoin stash are two different stories. Shareholders are losing paper value because the market is pricing the equity harshly, but the underlying BTC treasury hasn’t shrunk — it’s grown. Whether that gap closes in investors’ favor is far from guaranteed.

Why this matters even if you don’t own ABTC

American Bitcoin’s troubles land at an awkward moment for the whole “corporate treasury” trend that helped fuel Bitcoin’s rally over the past couple of years. Strategy, the largest corporate BTC holder and long the poster child for this strategy, recently sold $216 million worth of Bitcoin — a notable reversal for a firm known for relentless accumulation.

Zooming out, corporate treasury demand for Bitcoin has gone nearly flat, adding just 0.3% over the last 30 days of trading, per data cited by AMBCrypto. Total Bitcoin held by public companies actually dipped slightly, from about 1.267 million BTC to 1.265 million BTC, after Strategy’s sale.

That matters for regular holders because these corporate buyers have been one of the steady sources of demand propping up Bitcoin’s price during quieter stretches. If that demand keeps fading, some of the price support retail investors have been leaning on could weaken too. Nobody knows yet whether this marks a real bottom for corporate buying or just a pause — but it’s a trend worth watching, whether or not you’ve ever owned a share of a Bitcoin treasury company.

Read more: Strategy’s Bitcoin-Backed Shares Hit a $10B Trading Record — Even as Prices Cracked