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Little Trump’s empty-handed wolf?

The NASDAQ-listed Bitcoin mining company, American Bitcoin Company, is facing intense controversy over its business model. Forbes released an investigative report this week accusing the company of essentially being a “arbitrage tool” that uses the Trump brand effect to attract retail investors (especially MAGA supporters), resulting in retail investor losses of approximately $500 million since going public last September.

Forbes accuses: Overpriced listing and “empty-handed wolf”

　　The report states that American Bitcoin Company raises funds by repeatedly issuing overvalued stocks to directly buy Bitcoin on the open market, rather than primarily through mining. Since going public in September, its stock price has plummeted over 92% from a peak of $14.52, and the company's market value has shrunk from $13.2 billion to about $1.24 billion. In contrast, co-founder Eric Trump’s personal net worth has increased from about $190 million to $280 million during this period. The report also points out that the company actually has only two full-time employees, with daily operations mainly outsourced to partner Hut 8.

Eric Trump’s counterattack: Accusing “political motives” and “Chinese propaganda”

　　Eric Trump fiercely attacked the report on social media platform X, calling it “politically motivated propaganda,” and directed his criticism at Forbes’ owner—Hong Kong investment firm. He responded by showcasing the company's operational data: holding over 7,000 Bitcoin, possessing 28 EH/s of computing power, and nearly 90k mining machines, emphasizing that revenue in the fourth quarter increased by 22% quarter-over-quarter to $78.3 million.

Controversy focus and industry observations

　　Despite Eric Trump’s vigorous defense, market reactions have been severe. As of this week, American Bitcoin Company’s stock has fallen about 85% from its IPO price. However, a few institutions still maintain a “buy” rating.

　　The core of this debate is whether the company's huge market value is based on solid fundamentals or mainly relies on Trump’s brand premium. As Bitcoin prices retreat from their highs, the risks of its “large-scale hoarding” strategy are gradually being exposed to the public.