[AP]
[AP]

American Bitcoin has expanded its bitcoin holdings to 8,000 coins, pressing ahead with an aggressive accumulation strategy even as its share price has plunged more than 90% since listing, raising doubts about whether the company can win back market confidence.

American Bitcoin (ABTC), led by Eric Trump — the second son of US President Donald Trump — recently accelerated its asset buildup to around 8,000 bitcoin, according to financial media outlet Benzinga on Wednesday.

Eric Trump disclosed the figures on his social media accounts, saying the company posted a mining margin of 52% in the first quarter of this year and that its operating costs were among the lowest in the industry.

"Bitcoin accumulation will not stop," he said, reaffirming the company's growth strategy centered on building up its bitcoin reserves.

Yet the aggressive accumulation has done little to lift the stock. American Bitcoin has fallen roughly 94% since its listing last September, inflicting heavy losses on investors.

Market observers note that growing bitcoin holdings and growing corporate value are two separate matters. Without demonstrated profitability in the mining business, healthy cash flow, and a clear plan to enhance shareholder value, they argue, simply stockpiling assets is unlikely to drive a share price recovery.

The controversy has deepened amid reports that roughly $500 million in shareholder value has been wiped out since the listing while Eric Trump's personal wealth has actually grown, fueling debate over shareholder protection and corporate governance.

The company carried out a 15-to-1 reverse stock split last month in an attempt to prop up the share price, but the effect was limited. The stock fell an additional 38% after the reverse split, extending its downtrend.

Technical indicators offer little comfort. Most short- and medium-to-long-term signals for American Bitcoin currently point bearish, leaving the stock without a clear catalyst for a rebound.

Eric Trump has pushed back against such criticism, calling it "politically biased" and maintaining that there is nothing wrong with the company's business direction.

He believes rising mining costs and volatility in the virtual asset market have weighed on earnings and the share price, but that the long-term bitcoin accumulation strategy remains sound.

Investors, however, are demanding more than updates on bitcoin holdings. They want a clearer picture of how the mining business will improve its profitability and financial structure — and how those gains will translate into actual shareholder value.

Ultimately, what the market wants to know is not how many bitcoin the company holds, but whether it can generate stable returns and build corporate value from those assets. Proving that its strategy can move beyond simply betting on a rising bitcoin price — and instead deliver a virtuous cycle of earnings and shareholder returns — may be American Bitcoin's most pressing challenge ahead.


rainbow@heraldcorp.com