{"id":138491,"date":"2026-02-27T10:43:32","date_gmt":"2026-02-27T10:43:32","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=138491"},"modified":"2026-02-27T10:43:32","modified_gmt":"2026-02-27T10:43:32","slug":"american-bitcoin-corp-down-90-trumps-crypto-businesses-are-bleeding","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=138491","title":{"rendered":"American Bitcoin Corp Down 90%: Trump\u2019s Crypto Businesses Are Bleeding"},"content":{"rendered":"

American Bitcoin Corp. (ABTC)<\/a>, the miner backed by the Trump family, significantly missed the mark this quarter, reporting a $59 million loss amid the industry\u2019s deepest rout since 2022. While revenue grew, the company\u2019s stock has plummeted roughly 90% from its September highs, trading just above $1.00 following the earnings release.<\/p>\n

American Bitcoin Corp., which counts Eric Trump as a co-founder and chief strategy officer, took a bold path that set it apart from its competitors. While other major miners like MARA Holdings and Riot Platforms<\/a> pivoted toward artificial intelligence infrastructure to diversify revenue, ABTC doubled down on a pure mining-and-hoarding strategy.<\/p>\n

This strategy looked brilliant when Bitcoin was surging past $126,000. However, with Bitcoin retreating significantly to trade around $70,000, that conviction has become costly. The company recorded a staggering $227 million unrealized loss on the value of its Bitcoin reserves for the year.<\/p>\n

$ABTC<\/a> down 92% since early May of last year and down 97% since the first day of trading (a plunge from ($42.15 to just over a buck). In 2025, $ABTC<\/a> suffered a net LOSS of $152.2 million with revenue of $185.2 million\u2026 pic.twitter.com\/UHiiomNUod<\/a><\/p>\n

\u2014 Joel Griffith (@joelgriffith) February 26, 2026<\/a><\/p>\n\n

DISCOVER: 14 Best Crypto to Buy Now in February 2026<\/a><\/strong><\/p>\n

Mining Stocks vs. Holding BTC: The \u201cLeverage\u201d Trap<\/h2>\n

You might be wondering: If Bitcoin is down roughly 45% from its highs, why is this mining stock down 90%? This is one of the most important concepts to understand in crypto investing.<\/p>\n

Mining companies tend to act like \u201cBitcoin on steroids.\u201d In financial terms, this is called operational leverage. When you hold Bitcoin in your own wallet, you have no overhead costs. If the price drops 10%, your asset is worth 10% less. That is it.<\/p>\n

But a mining company is a business with fixed bills. They have to pay for massive amounts of electricity, hardware maintenance, and debt servicing every single month, regardless of the Bitcoin price. When the price of Bitcoin crashes, their revenue shrinks, but their bills stay the same. This squeezes their profit margins instantly, causing the stock price to react much more violently than Bitcoin itself.<\/p>\n

It works both ways, of course. We see this dynamic often in public markets, similar to how MicroStrategy (MSTR)<\/a> shares often swing wildly compared to the actual Bitcoin they hold. Miners are high-risk, high-reward plays that assume the price will keep going up.<\/p>\n

DISCOVER: Top Crypto Presales to Watch Now<\/a><\/strong><\/p>\n

Betting on the Trump Family: Why Political Ties Increase Risk<\/h2>\n

Investing in American Bitcoin isn\u2019t just a bet on crypto prices; it is also a bet on the Trump brand. This adds a layer of complexity known as \u201cheadline risk.\u201d Stocks tied to high-profile political figures often trade on sentiment rather than just fundamentals.<\/p>\n

The broader portfolio of Trump-related crypto ventures is currently struggling. World Liberty Financial, a decentralized finance project, has seen its token plunge 65% since September. When a company\u2019s identity is tied to a political brand, news cycles can impact the stock price as much as earnings reports do. If political sentiment shifts or regulatory scrutiny increases, these stocks can suffer even if the underlying business is stable.<\/p>\n

Donald Trump\u2019s Approval Rating Source:\u00a0Economist<\/a><\/p>\n

This volatility is compounded by the fact that the broader mining industry is already facing headwinds. As mining difficulty adjustments<\/a> fluctuate, only the most efficient operators survive.<\/p>\n

DISCOVER: 5 High-Risk High-Reward Cryptos for 2026<\/a><\/strong><\/p>\n

American Bitcoin Corp Down 90%: Is The Mining Sector at Risk? All Depends On Bitcoin<\/h2>\n

For investors watching the mining sector, the drop in ABTC is a signal to be cautious but attentive. The company\u2019s \u201cpure play\u201d model means its recovery is entirely dependent on Bitcoin resuming its climb. If Bitcoin rallies, ABTC could see an explosive recovery due to that same leverage effect that crushed it on the way down.<\/p>\n

However, the market is currently testing the resolve of miners. We have seen signs of miner capitulation<\/a> recently, where miners are forced to sell their holdings just to keep the lights on. ABTC has pledged not to sell, but the market is clearly skeptical about how long that can last if prices drop further.<\/p>\n

Watch the key support levels for Bitcoin carefully. Psychological lines in the sand, like the $60,000 level, are critical. If Bitcoin holds support and bounces, beaten-down miners like ABTC could offer significant upside. But if the price breaks lower, the operational leverage that hurts them now could get even worse.<\/p>\n

Follow 99Bitcoins on X<\/a> for the Latest Market Updates and Subscribe on YouTube<\/a> for Daily Expert Market Analysis<\/strong><\/p>\n

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Key Takeaways<\/h2>\n


\n <\/span><\/p>\n


\n <\/span>Trump-backed American Bitcoin Corp. reported a $59M loss, with shares down ~90% from highs.<\/p>\n


\n <\/span><\/p>\n


\n <\/span>Mining stocks are leveraged bets: they have fixed costs that amplify losses when Bitcoin prices drop.<\/p>\n


\n <\/span><\/p>\n


\n <\/span>Political ties add \u201cheadline risk,\u201d making stocks significantly more volatile than the wider market.<\/p>\n


\n <\/span><\/p>\n


\n <\/span><\/p>\n

<\/span><\/p>\n<\/div>\n

<\/p>\n

The post American Bitcoin Corp Down 90%: Trump\u2019s Crypto Businesses Are Bleeding<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

American Bitcoin Corp. (ABTC), the miner backed by the Trump family, significantly missed the mark this quarter, reporting a $59 million loss amid the industry\u2019s deepest rout since 2022. While revenue grew, the company\u2019s stock has plummeted roughly 90% from its September highs, trading just above $1.00 following the earnings release. American Bitcoin Corp., which […]<\/p>\n","protected":false},"author":0,"featured_media":138492,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-138491","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/138491"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=138491"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/138491\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/138492"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=138491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=138491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=138491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}