(Bloomberg) -- American Bitcoin (NASDAQ: ABTC) co-founder Eric Trump laid out an aggressive strategy to dominate the Bitcoin mining space by accumulating the most coins at the cheapest price, even as the company’s stock has fallen 84% since its public debut.
"There’s the race of who can acquire the most, the cheapest. And I can tell you, at American Bitcoin, that’s the race we want to win," Trump said in a recent interview, positioning his firm against the high-volume treasury model of competitors like Michael Saylor’s Strategy.
The declaration comes as American Bitcoin posted its second consecutive quarterly loss. The company reported a net loss of $0.08 per share for the first quarter, missing the Zacks Consensus Estimate of a $0.01 loss. Revenue came in at $62.12 million, missing forecasts by 17%. The results mirror a difficult period for the mining sector, with peers like MARA Holdings (MARA) and CleanSpark (CLSK) also reporting wider net losses tied to the fair value of their digital asset holdings.
Despite the financial headwinds, Trump remains focused on accumulation as the company’s “guiding star.” The firm mined 817 BTC during the quarter, growing its total reserves to 7,000 BTC, valued at approximately $566 million. Trump claimed the company achieves this through superior efficiency, with access to low-cost energy that allows it to mine Bitcoin at a 47% cost discount. The company now controls over 90,000 mining machines, accounting for an estimated 2.5% to 3% of global mining capacity.
This aggressive accumulation strategy in the face of steep financial losses highlights a critical challenge for the Bitcoin mining industry. While expanding a Bitcoin treasury is a primary goal, maintaining profitability and investor confidence is proving difficult amid high operational costs and volatile crypto prices. Trump, however, projected confidence at a recent CoinDesk event, stating that crypto had “won the race” against traditional finance players like JPMorgan, which he noted has shifted its stance on Bitcoin.
This article is for informational purposes only and does not constitute investment advice.
