- Eric Trump defended American Bitcoin (ABTC), highlighting its rapid growth, NASDAQ listing, and place among the largest publicly traded Bitcoin companies with over 7,000 Bitcoin holdings.
- Forbes claimed that the company relied too heavily on brand-driven hype and stock sales, claiming insiders benefited while investors faced huge losses as shares fell sharply.
- The debate focuses on the financial sustainability of ABTC, with concerns about rising mining costs and relying on a rebound in Bitcoin prices or external financing to remain viable.
Eric Trump has rejected Forbes’ criticism of his cryptocurrency project, American Bitcoin (ABTC). The controversy was over a broader discrepancy between the company’s reported growth and concerns about its business model and investor results.
Eric Trump responds to ABTC criticism
Eric Trump recently denied the newspaper’s claims and questioned their credibility. He said Forbes had “become a disgrace to journalism” while defending the rapid rise of US bitcoin. According to him, the company has only been around for a little over a year. It has since grown to become one of the largest publicly traded Bitcoin companies.
American Bitcoin, also known as ABTC, went public on the Nasdaq exchange less than eight months ago. Since then, the company has built a large cryptocurrency position. It now has more than 7,000 Bitcoins on its balance sheet. This places it among the top publicly listed companies holding Bitcoin globally, with Eric Trump citing it as 16th.
The company also expanded its mining operations. Nearly 90,000 mining machines are in operation and the hash rate is 28 exahashes per second. Eric Trump said that the company uses efficient energy sources within the United States to support its operations. He pointed to internal performance metrics to support his claims of growth.
In the fourth quarter, the company reported a 58 percent increase in Bitcoin holdings. Mining costs have also been highlighted as being significantly lower than the market price of Bitcoin. Revenues for the quarter were $78.3 million, a 22 percent increase compared to the previous quarter. Eric Trump described the company as one of the fastest companies to enter the upper echelons of the sector.
But the narrative presented by Forbes is different. Forbes said that US bitcoin is a high-risk venture that relies on momentum and brand equity. It claimed that it took advantage of Trump’s name and investor interest in cryptocurrencies rather than sound operational fundamentals.
According to Forbes, the company expanded rapidly after launching in 2025 and reached a valuation of over $13 billion. The report claimed that this growth was supported by strong stock sales and promotional messages. He also questioned the size of the company’s core team and suggested that operations were limited compared to its overall location.
The report raised concerns about investor influence. It reported that ABTC shares fell sharply over the past few months. Since its peak, the stock has fallen about 92 percent. This resulted in significant losses for investors, including those aligned with the political base that supported the brand.
Forbes also studied the economics of the company’s mining business. Even as management reported lower direct mining costs, the publication noted that full operational expenses told a different story. Once overhead and equipment costs are included, the estimated cost of producing one is Bitcoin It rises to about $90,000. With market prices falling below this level, the report indicated that the company may operate at a loss.
This difference between cost and market value has put further pressure on the company’s prospects. Shares are already down about 29% since the beginning of the year. Analysts quoted in the report wondered whether the company could have survived without it Bitcoin Price recovery. Going forward, the company appears to be experimenting with a few approaches. One possibility is to wait for Bitcoin prices to rise. Forbes estimated that a 35% increase could turn existing trading losses into a profit position. This approach depends on improving market conditions in the near term.
The company’s leadership has contacts in the United Arab Emirates. Discussions reportedly included the use of surplus capacity in mining operations. Potential partnerships with investment groups such as ADQ and TAQA were also mentioned. These parties are linked to Tahnoon bin Zayed Al Nahyan. Such joint ventures can provide capital and infrastructure support. At the same time, it brings additional risks associated with foreign investment and long-term returns. The results of these efforts may affect the Company’s ability to continue its operations.
The rapid growth in cryptocurrencies can attract attention, but it also brings scrutiny. In this case, the gap between public claims and external analysis became a point of discussion.
