American Bitcoin Corp. ( ABTC ), the miner backed by the Trump family, lost significantly this quarter, reporting a $59 million loss on the back of the industry’s deepest loss since 2022. While earnings rose, the company’s shares have fallen nearly 90% from their September highs and traded above $1.00 after the announcement.
American Bitcoin Corp., which counts Eric Trump as its co-founder and chief strategy officer, has taken a bold path that has set it apart from its competitors. While other major miners such as MARA Holdings and Riot Platforms have relied on artificial intelligence infrastructure to diversify revenue, ABTC has doubled down on its mining and resource mining strategy.
When Bitcoin broke above $126,000, this strategy looked great. However, that belief came at a cost when Bitcoin fell dramatically to trade around $70,000. The company recorded a whopping loss of $227 million a year on the value of its bitcoin holdings.
$ABTC down 92% since early May last year and 97% since the first day of trading (from $42.15 to just over a dollar). In 2025, $ABTC It saw a net loss of $152.2 million on revenue of $185.2 million… pic.twitter.com/UHiiomNUod
— Joel Griffith (@joelgriffith) February 26, 2026
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Mining Stocks vs. BTC Holdings: The “Pressure” Trap
You might be wondering: If Bitcoin is down nearly 45% from its peak, why are these mining stocks down 90%? This is one of the most important concepts to understand in crypto investing.
Mining companies tend to act like “Bitcoin on steroids”. In financial terms, this is called operating leverage. When you store Bitcoin in your wallet, you don’t have any additional costs. If the price goes down 10%, your assets are worth 10% less. This is it.
But a mining company is a business with fixed bills. They have to pay a lot of electricity, hardware maintenance and debt service every month regardless of the price of bitcoin. When the price of Bitcoin falls, their income goes down, but their bills stay the same. This would drastically reduce their profit margins and cause the share price to react much more violently than Bitcoin itself.
It works both ways, of course. We see this dynamic often in the public markets, like how shares of MicroStrategy (MSTR) fluctuate so wildly compared to their actual Bitcoin counterparts. Miners are high-risk, high-reward games that assume the price will continue to move.
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Betting on the Trump Family: Why Political Connections Increase Risk
Investing in American Bitcoin is not just a bet on crypto prices; It is also a bet on the Trump brand. This adds a layer of complexity called “header risk”. Stocks linked to influential political figures often trade on more than just sentiment.
A broader portfolio of Trump-related crypto ventures is currently struggling. World Liberty Financial, a decentralized finance project, has seen its token fall by 65% since September. When a company’s identity is tied to a political brand, news cycles can affect stock prices as much as earnings reports. If political sentiment changes or regulatory scrutiny increases, these stocks could suffer even if the underlying business holds up.
This volatility comes as the mining industry is already facing headwinds. As the regulation of mining challenges changes, only the most efficient operators will survive.
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American Bitcoin Corp down 90%: Is the mining sector in danger? It all depends on Bitcoin
For investors watching the mining sector, the drop in ABTC is a signal to be cautious but watchful. The company’s “pure play” model means that its recovery is entirely dependent on the recovery of Bitcoin’s rise. If Bitcoin rallies, ABTC could see an explosive recovery due to the same leverage effect that broke it on the way down.
However, the market is currently testing the will of miners. We have recently seen signs of miners surrendering, where miners are forced to sell their assets just to keep the lights on. ABTC has vowed not to sell, but the market is clearly skeptical about how long that can last if prices fall further.
Watch Bitcoin’s main support levels carefully. Psychological lines in the sand, such as the $60,000 level, are important. If Bitcoin has support and absorption, beaten miners like ABTC can offer a significant advantage. But if the price falls, the leverage that is currently hurting them could get even worse.
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Main roads
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The Trump-backed Bitcoin Corporation reported a $59 million loss, with shares down ~90% from their highs.
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Mining stocks are leveraged bets: they have fixed costs that increase losses when the price of Bitcoin falls.
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Political ties add “headline risk,” which makes stocks more volatile than the broader market.
The post American Bitcoin Corp Down 90%: Trump’s Crypto Businesses Are Bleeding appeared first on 99Bitcoins.
