--- title: "Bitcoin's sharp decline severely impacts the fundamentals! American Bitcoin, supported by the Trump family, shifts from profit to loss" type: "News" locale: "en" url: "https://longbridge.com/en/news/277049958.md" description: "The sharp decline in Bitcoin severely impacted the performance of American Bitcoin, which unexpectedly reported a loss of $59.45 million in the fourth quarter, compared to a profit of $3.48 million in the same period last year. Although revenue increased year-on-year to $78.3 million, it fell short of analysts' expectations of $79.6 million. Market uncertainty regarding high-valuation tech stocks and Federal Reserve policies exacerbated the sell-off in cryptocurrencies, leading to a nearly 23% drop in Bitcoin over three months" datetime: "2026-02-26T13:36:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/277049958.md) - [en](https://longbridge.com/en/news/277049958.md) - [zh-HK](https://longbridge.com/zh-HK/news/277049958.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/277049958.md) | [繁體中文](https://longbridge.com/zh-HK/news/277049958.md) # Bitcoin's sharp decline severely impacts the fundamentals! American Bitcoin, supported by the Trump family, shifts from profit to loss According to Zhitong Finance APP, as the global cryptocurrency asset sector significantly weakens, American Bitcoin (ABTC.US), which has received substantial support from two sons of U.S. President Donald Trump and holds shares from President Trump himself, reported on Thursday that the company has turned from profit to loss, unexpectedly incurring losses in the fourth quarter. Market concerns and panic over the overvaluation of AI stocks and the extreme worry about "AI disrupting everything," along with uncertainty regarding the timing and extent of the Federal Reserve's interest rate cuts in 2026, have put pressure on cryptocurrencies and many risk assets such as overvalued tech stocks and high-yield corporate bonds, dragging Bitcoin down to its quarterly low and putting many so-called Digital Asset Treasury (DAT) companies in a precarious position. American Bitcoin is a pioneer miner of the world's largest cryptocurrency, selling mined Bitcoin assets at a premium or holding them to wait for price increases. However, during the fourth quarter reported and the outlook for the first quarter of this year, the cryptocurrency sector has faced massive sell-offs, with Bitcoin plummeting nearly 23% in just three months. The company recorded a net loss of $59.45 million in the fourth quarter, compared to a profit of approximately $3.48 million in the same period last year. The company also reported significant profits in the previous quarter. Additionally, American Bitcoin reported total revenue of $78.3 million for the three months ending December 31, compared to $64.2 million in the same period last year, which fell short of Wall Street analysts' previously expected median revenue of $79.6 million. Furthermore, the company's operating loss in the fourth quarter was approximately $104.6 million, while it achieved an operating profit of $7.199 million in Q3 2025; adjusted EBITDA was a loss of $77.617 million, compared to a profit of approximately $27.653 million in Q3 2025. Since breaking through $125,000 to reach an all-time high last October, Bitcoin has experienced a sharp sell-off, and this downward trend has continued into the new year. Year-to-date, the world's largest cryptocurrency by market capitalization has significantly dropped by 27% and has fallen 50% from its historical peak in October. Bitcoin seems to be undergoing a crisis of identity and a collapse of bull market faith characterized by "narrative compression"—the price pullback is not the only issue; more critically, the main narratives (hedging, payment, speculation) on which its value pillars have long relied are being weakened simultaneously. Ironically, this occurs at a stage when Bitcoin "seems to have already won": with friendlier regulations, deeper institutional participation, and more refined Wall Street tools (such as spot ETFs), yet these have not prevented a significant shrinkage in market value, but rather prompted the market to start questioning: when the rise is no longer a default outcome, what else can it rely on to attract new funds and long-term allocations? The cryptocurrency company operates an industrial-scale mining business, primarily relying on infrastructure provided by Hut 8 to produce/mine Bitcoin at costs far below current market prices Stocks of cryptocurrency reserve companies like Strategy and American Bitcoin typically fluctuate in sync with token prices, as price changes directly affect the value of their reserve assets, and the price movements of cryptocurrency reserve companies often exhibit greater volatility than the tokens themselves. American Bitcoin was co-founded by Eric Trump, the son of Donald Trump, who is a shareholder in the company. Over the past 12 months, the company's stock price has fallen nearly 22%. If the stock prices of cryptocurrency reserve companies continue to be under pressure, it may make it more difficult for these companies to raise additional capital, thereby complicating their ability to mine more cryptocurrency tokens using large-scale industrial equipment that requires significant computational power, which is at the core of their business model. However, Eric Trump stated in a statement that the company currently holds over 6,000 bitcoins, up from 5,401 at the end of 2025, and that the holding cost is in a favorable range—claiming that they "mined some bitcoins in Q4 at a 53% discount to the current spot purchase price." 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