Eric Trump Criticizes Forbes Over American Bitcoin Report and Investor Loss Claims

Eric Trump has publicly criticized Forbes following a report that questioned the performance and structure of his cryptocurrency venture, American Bitcoin (ABTC). The publication alleged that the company has caused significant losses for retail investors, estimating that around $500 million in shareholder value has been wiped out since its public listing.

The Forbes investigation described American Bitcoin as an “arbitrage vehicle,” claiming it sells inflated shares and uses the proceeds to purchase Bitcoin (BTC). According to the report, ABTC’s market capitalization has fallen roughly 92%, dropping from a peak of $13.2 billion to approximately $1.24 billion. The article also stated that nearly 70% of the company’s Bitcoin holdings were acquired on the open market rather than mined, raising concerns about the firm’s operational model.

Additionally, Forbes estimated the total cost per Bitcoin at around $90,000 when including depreciation and operational expenses. This figure contrasts with Eric Trump’s public claim of a much lower $57,000 per BTC. Since going public through a merger with Hut 8 on Nasdaq in September, ABTC’s stock price has dropped more than 90%, falling from a high of $14.52 to about $1.16.

In response, Eric Trump defended the company’s financial and operational performance. He highlighted Q4 revenue of $78.3 million, marking a 22% increase quarter over quarter. He also emphasized the company’s mining capabilities, including 28 exahash of capacity and nearly 90,000 miners in operation. According to Trump, ABTC currently holds over 7,000 Bitcoin, making it one of the top public companies with significant BTC reserves.

While Trump strongly rejected the criticism and questioned Forbes’ credibility, he did not directly address the reported losses experienced by retail investors. As the debate continues, analysts suggest that upcoming financial results will be crucial in shaping investor confidence and determining the future trajectory of American Bitcoin in the competitive cryptocurrency market.