Forbes magazine has just published a scathing investigative report targeting American Bitcoin – the Bitcoin company promoted by Eric Trump , the second son of President Trump, as a "money printing machine." According to Forbes, it is essentially an arbitrage tool that exploits the psychology of investors in the MAGA community, causing significant losses to shareholders while enriching its founders.
Forbes' accusation: Inflated valuation.
According to the article, American Bitcoin exploited the Trump brand effect to issue shares at an inflated valuation, collecting money from investors and then using it to buy Bitcoin. Since listing in September, the company has sold approximately 158 million shares, raising $351 million, which it used to purchase Bitcoin worth about $390 million.
Regarding operating costs, Forbes points out a significant discrepancy: the company claims the cost of mining Bitcoin is around $58,000/ BTC, but when all expenses such as equipment depreciation are included, the actual figure rises to approximately $90,000/ BTC – higher than the current Bitcoin price. In particular, the company is paying for Mining Rig under financing agreements, and if the price of Bitcoin does not recover, all the mined Bitcoin could be used to pay off the equipment debt.
Forbes also revealed that American Bitcoin has only two full-time employees. The stock has fallen 92% from its peak, with total estimated losses of around $500 million for investors. Meanwhile, Forbes estimates Eric Trump's personal wealth has increased from approximately $190 million to $280 million.
Eric Trump retorted: "Forbes is a political weapon."
Not remaining silent in the face of accusations, Eric Trump spoke out directly on the X platform, calling Forbes a "political weapon and a disgrace to journalism." He presented a series of counter-statistics: American Bitcoin, founded less than two years ago and listed for 7 months and 25 days, currently holds over 7,000 BTC and is the 16th largest listed Bitcoin company in the world. The company owns nearly 90,000 Mining Rig with a total hashrate of 28 EH/s. In the fourth quarter, the amount of Bitcoin on the balance sheet increased by 58%, mining costs were 53% lower than the market price, and quarterly revenue reached $78.3 million, a 22% increase compared to the previous quarter. Eric Trump concluded with a call to action: "Judge your own sources."
