Did Eric Trump lose $600 million? As Donald Trump-backed companies shrink in value and artificial intelligence rises, all the risk is on Bitcoin
US Bitcoin firm loses $600 million as startup launched by co-founder fails Eric Trump.
According to reports, the second eldest child Donald TrumpEric has been working to adjust the company as the value of Bitcoin declines during the rise of artificial intelligence. Bloomberg analysis shows that he effectively wiped out more than $600 million in market value in 10 months due to his decision to maintain his original market value. US Bitcoin Encryption policy.
U.S. Bitcoin firm’s woes highlight $600 million losses under Eric Trump
The company’s stock price is currently 95% below its peak. Additionally, it must implement a 1-for-15 reverse stock split to maintain its listing on Nasdaq. U.S. Bitcoin stock prices hit a record low on Wednesday.
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According to Bloomberg, investors have lost interest in purely cryptocurrency-centric business models. Successful companies must now focus on how to effectively monetize power, land, and computing resources rather than relying solely on the number of Bitcoins they can generate.
The Trump family’s unfortunate setback highlights the unpredictability of their foray into cryptocurrency. According to President Donald Trump’s recently disclosed financial data, his cryptocurrency income will reach at least $1.4 billion by 2025. However, many retail investors are suffering losses as Trump-backed coins and U.S. Bitcoin struggle.
Bloomberg stated that Eric holds about 6% of the shares of U.S. Bitcoin and also serves as its chief strategy officer. donald trump jr.., serves as a consultant and owns an undisclosed stake in the company.
Everything we know about Bitcoin in the US
Initially, the predecessor to Bitcoin USA focused on building a data center portfolio as its primary strategy. Eric and Don Jr. later founded American Data Centers, a company formed in February 2025 by Trump-backed investment bank Domonari Holdings Inc.
At this time, Eric emphasized that this is crucial to the advancement of artificial intelligence infrastructure in the United States. He abandoned the plan about a month later when the company finalized an agreement with Hut 8 Corp, which said it would provide mining equipment for U.S. data centers in exchange for equity and an exclusive service contract.
The renamed U.S. Bitcoin subsequently completed a reverse merger with existing listed mining company Gryphon Digital Mining Inc. and began trading on Nasdaq in early September. The stock peaked at $139.65 on September 9, just five trading days after the reverse takeover.
Given the falling cryptocurrency prices over the past nine months, other U.S. miners have chosen to rent out their computing resources to artificial intelligence. Riot Platforms Inc., Cipher Digital Inc., MARA Holdings Inc. and TeraWulf Inc. are among the big names that have signed deals to expand into data centers.
Since the beginning of this year, their stock prices have increased by more than 60% on average. Likewise, U.S. Bitcoin stock prices fell by about 77%.
