Gate News message, April 29 — Forbes published a critical report on American Bitcoin, the company led by Eric Trump, alleging it functions as an arbitrage tool exploiting MAGA investor sentiment rather than a legitimate “money printing machine” as promoted. According to Forbes, the company uses inflated marketing to attract investors, capitalizing on the Trump brand premium to issue overvalued shares and cash out, while purchasing Bitcoin with proceeds. Ordinary investors have suffered significant losses.
Since its September listing, American Bitcoin has sold approximately 158 million shares, generating roughly $351 million in proceeds, which were used to purchase Bitcoin valued at approximately $390 million. The company claims mining costs of approximately $58,000 per Bitcoin, but when equipment depreciation and other expenses are factored in, actual full costs reach approximately $90,000 per Bitcoin—exceeding current Bitcoin prices. The company faces risks from mining equipment financing agreements; if Bitcoin prices fail to rebound, all mined Bitcoin could be used to settle equipment payments. American Bitcoin operates with only two full-time employees, and its stock price has declined 92% from peak levels, with estimated investor losses around $500 million. Eric Trump’s personal wealth increased from approximately $190 million to $280 million during this period.
Responding on X, Eric Trump stated that “Forbes has become a political weapon and a disgrace to journalism.” He noted that American Bitcoin, founded just over one year ago and listed for 7 months and 25 days, currently holds over 7,000 Bitcoin and ranks as the 16th-largest publicly traded Bitcoin company globally, operating approximately 90,000 mining rigs.
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