Eric Trump has sparked controversy by accusing Forbes of having ties to China following the magazine’s critical report on his cryptocurrency venture, American Bitcoin (ABTC). Forbes recently claimed that ABTC has substantially diminished retail shareholder value, estimating that roughly $500 million has been lost since the company went public.
In response to the allegations, Eric Trump defended his company’s financial performance, citing Q4 revenue of $78.3 million and asserting that ABTC holds over 7,000 Bitcoin (BTC). He dismissed Forbes as “an embarrassment to journalism” and urged the public to scrutinize the sources of their information.
The Forbes investigation delves into the details of ABTC’s operations, describing the company as an “arbitrage vehicle” that inflates share prices and subsequently invests the proceeds into Bitcoin. It reports that ABTC’s market capitalization has plummeted by approximately 92%, falling from its peak of $13.2 billion to about $1.24 billion. Small investors have reportedly suffered significant losses amid this decline.
According to the report, around 70% of ABTC’s Bitcoin holdings were acquired on the open market rather than being mined. The estimated all-in cost for each coin, after accounting for depreciation and overhead, is projected at nearly $90,000, which starkly contrasts the $57,000 figure frequently cited by Eric Trump.
ABTC made its public debut through a merger with Hut 8 on NASDAQ in September, but its stock price has since seen a brutal decline of over 90%. As of the latest trading figures, ABTC shares were quoted around $1.16, a sharp drop from the initial trading high of $14.52.
In his rebuttal, Eric Trump highlighted operational metrics, claiming significant mining capacity of 28 exahash, nearly 90,000 miners, and a notable 53% discount to market prices for Bitcoin. He emphasized a revenue increase of 22% quarter over quarter, which he believes positions ABTC as one of the largest public holders of Bitcoin.
The framing of his response, which indirectly implied that the Forbes article was motivated by “Chinese propaganda,” echoes similar sentiments expressed by high-profile individuals in the finance and crypto sectors. Treasury Secretary Scott Bessent recently blasted a Financial Times article, referring to it as “tabloid trash.” Likewise, Binance founder Changpeng Zhao has long criticized mainstream media coverage.
Despite his strong defense of his company’s operational performance, Eric Trump’s response notably lacked acknowledgment of the substantial losses inflicted on retail investors.
