The Bitcoin mining company under the Trump family has reported losses for three consecutive quarters, with its stock price dropping over 90% from its peak

American Bitcoin once again recorded a quarterly loss, as the ongoing bear market continues to erode its asset value, forcing the company to implement a reverse stock split to maintain its listing status on Nasdaq.

On Monday, August 3, Bitcoin miner American Bitcoin, co-founded by the Trump family, announced a net loss of $57 million for the second quarter, equivalent to a loss of 80 cents per share, marking the third consecutive quarter of losses.

Although the quarterly loss narrowed from $82 million in the previous quarter, and revenue slightly increased from $62 million to $67 million, the persistent bear market has caused the company's stock price to drop approximately 95% from its peak at the time of listing.

During the same period, the price of Bitcoin fell by 14%, directly dragging down the value of the company's holdings.

In July of this year, the company was forced to implement a 1-for-15 reverse stock split to maintain its listing qualifications on Nasdaq. On Monday, the stock opened down about 3.3%, but later rebounded along with the market trend, rising nearly 8% at one point.

Bear Market Pressure, Miners Hold Firm in the Bitcoin Sector

American Bitcoin was co-founded by Eric Trump and Donald Trump Jr., headquartered in Miami, and is one of the few publicly listed companies in the crypto industry that remains focused on Bitcoin mining.

In the current context where the industry is generally transitioning to artificial intelligence infrastructure service providers, the company has chosen to maintain its pure mining position.

Eric Trump, serving as Chief Strategy Officer, stated during the conference call following the earnings release:

Bitcoin never moves in a straight line, and we never assumed it would when we built this company. We understand the resistance the industry is facing this year, but our belief has not changed.

As of June 30, the company held approximately 8,000 Bitcoins, an increase of about 14% from the first quarter. However, the spot price of Bitcoin reported around $63,150 on Monday, down approximately 45% from a year ago, continuously suppressing the company's asset valuation.

Distancing from "Digital Asset Treasury Companies," Emphasizing Mining Cost Advantages

Since the surge in Bitcoin prices following the U.S. presidential election, many companies have announced their positioning as "digital asset treasury companies," competing to purchase Bitcoin.

Although American Bitcoin has also been categorized in this camp by the market, Eric Trump has clearly expressed his discontent with this classification. He said:

What bothers me is that we are categorized alongside treasury companies, which are stagnant and can only buy Bitcoin and other cryptocurrencies at market prices, fundamentally different from us. Our advantage is that we do not buy at market prices; our mining costs are about half of the market price.

The company stated that despite facing headwinds in the market, its mining operational efficiency continues to improve, and its computing power scale is also expanding.

A Component of the Trump Family's Crypto Landscape

American Bitcoin is one of several crypto businesses under the Trump family. The Trump family's crypto layout also includes projects like the decentralized finance platform World Liberty Financial.

Previously, financial disclosure documents indicated that Trump earned at least $1.4 billion from his crypto-related businesses last year, making him one of the highest earners in the U.S. crypto sector.

For investors, American Bitcoin's continuous losses and deep stock price retracement reflect the high-risk nature of the current strategy of single exposure to Bitcoin.

In the context of increasing industry differentiation, whether miners can navigate the bear market cycle with cost advantages remains to be tested by the market.