American Bitcoin Corp. (ABTC), the Trump family-backed mining company, significantly missed its target this quarter, posting a $59 million loss amid the sector’s deepest rout since 2022. While revenue rose, the company’s shares fell about 90% from their September highs, trading just above $1.00 after the earnings release.
American Bitcoin Corp., which counts Eric Trump as co-founder and chief strategy officer, has taken a bold path that has set it apart from its competitors. While other large miners like MARA Holdings and Riot Platforms have turned to artificial intelligence infrastructure to diversify their revenues, ABTC has doubled down on its mining and hoarding strategy.
This strategy looked brilliant when Bitcoin surpassed $126,000. However, with Bitcoin dropping significantly to trade around $70,000, this belief has become costly. The company recorded a staggering $227 million unrealized loss on the value of its Bitcoin reserves for the year.
$ABTC down 92% since early May last year and 97% since the first day of trading (a drop from ($42.15 to just over a dollar). In 2025, $ABTC suffered a net LOSS of $152.2 million with revenue of $185.2 million… pic.twitter.com/UHiiomNUod
– Joel Griffith (@joelgriffith) February 26, 2026
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Mining stocks or holding BTC: the “leverage” trap
You may be wondering: If Bitcoin is down about 45% from its highs, why is this mining stock down 90%? This is one of the most important concepts to understand when it comes to crypto investing.
Mining companies tend to act like “Bitcoin on steroids”. In financial terms, this is called operating leverage. When you hold Bitcoin in your own wallet, you have no overhead. If the price falls by 10%, your asset is worth 10% less. That’s all.
But a mining company is a business with fixed invoices. They have to pay massive amounts of electricity, hardware maintenance, and debt service every month, regardless of the price of Bitcoin. When the price of Bitcoin collapses, their income goes down, but their bills stay the same. This instantly reduces their profit margins, causing the stock price to react much more violently than Bitcoin itself.
It works both ways, of course. We often see this dynamic in the public markets, in the same way that shares of MicroStrategy (MSTR) often swing wildly relative to the actual Bitcoin they hold. Miners are high risk, high reward games that assume the price will continue to rise.
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Betting on the Trump family: why political ties increase risk
Investing in US Bitcoin is not just about betting on cryptocurrency prices; it’s also a bet on the Trump brand. This adds a layer of complexity known as “overall risk.” Stocks linked to high-profile political figures often trade based on sentiment rather than simple fundamentals.
The broader portfolio of Trump-linked crypto companies is currently in trouble. World Liberty Financial, a decentralized finance project, has seen its token plunge 65% since September. When a company’s identity is tied to a political brand, news cycles can impact stock price just as much as earnings reports. If political sentiment changes or regulatory scrutiny increases, these stocks can suffer even if the underlying business is stable.
This volatility is compounded by the fact that the mining industry as a whole is already facing headwinds. As mining difficulty adjustments fluctuate, only the most efficient operators 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, ABTC’s decline is a signal of caution but attention. The company’s “pure play” model means its recovery is entirely dependent on Bitcoin resuming its ascent. If Bitcoin recovers, ABTC could see an explosive recovery due to the same leverage that crushed it to the downside.
However, the market is currently testing the resolve of miners. We have recently seen signs of capitulation by mining companies, who are being forced to sell off their holdings just to keep the lights on. ABTC has committed to not selling, but the market is clearly skeptical about how long this decision will last if prices continue to fall.
Carefully monitor key support levels for Bitcoin. Psychological limits, like the $60,000 level, are critical. If Bitcoin holds its support and rebounds, beaten miners like ABTC could offer a significant advantage. But if the price falls, the operational leverage that is currently hurting them could get even worse.
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Key takeaways
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Trump-backed American Bitcoin Corp. reported a $59 million loss, with shares down about 90% from highs.
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Mining stocks are leveraged bets: they have fixed costs that magnify losses when Bitcoin prices fall.
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Political ties add “overall risk,” making stocks significantly more volatile than the broader market.
The article American Bitcoin Corp Down 90%: Trump’s Crypto Firms Bleed appeared first on 99Bitcoins.
