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Eric Trump Clashes with Forbes Over American Bitcoin Exposé
Eric Trump has launched a scathing attack on Forbes magazine following its recent investigative article on American Bitcoin (ABTC), the Trump-linked cryptocurrency mining company that now trades on the Nasdaq.
Taking to social media platform X, the former president’s son denounced the publication, stating: “Forbes has become a political weapon and an embarrassment to journalism. This reads as politically motivated propaganda. Friends – educate yourselves as to the source of your information — in this case, China!”
In his defense of American Bitcoin, Eric Trump highlighted the company’s rapid growth, noting that it didn’t exist just over a year ago but now holds more than 7,000 BTC. He positioned the firm as the 16th largest publicly traded bitcoin company globally, boasting nearly 90,000 miners and 28 exahash of computing capacity powered by American energy.
Trump further cited the company’s financial performance, claiming a 58% growth in bitcoin holdings during Q4, mining operations that secured BTC at a 53% discount to market price, and quarterly revenue of $78.3 million – representing a 22% increase from the previous quarter.
The Forbes article in question painted a starkly different picture of American Bitcoin. The magazine reported that despite Eric Trump’s appearance on a February earnings call where he declared the company was “fast becoming the leader in the bitcoin world,” regulatory filings revealed that American Bitcoin had only two full-time employees just one month later – likely CEO Mike Ho and president Matt Prusak, with Ho simultaneously serving as chief strategy officer at another crypto firm, Hut 8.
According to Forbes, American Bitcoin made its public trading debut on September 3, when investors valued it at $13.2 billion, despite holding only approximately $270 million in bitcoin. The magazine noted that since then, the company’s diluted stock has plummeted 92% from its peak, with Forbes estimating Eric Trump’s personal wealth increased from $190 million to $280 million while retail investors collectively lost around $500 million.
The investigation traced American Bitcoin’s origins to the aftermath of the 2024 presidential election. Two weeks after Donald Trump defeated Kamala Harris, the entity that would become American Bitcoin was formed in Delaware, initially presenting itself as an AI data-center venture. Dubai developer Hussain Sajwani, who has business connections to the Trump family through a golf project, reportedly visited Mar-a-Lago and announced plans for a $20 billion U.S. data center initiative.
Forbes alleges the business model pivoted a month later when Eric and Donald Trump Jr. connected with Asher Genoot and Mike Ho of Hut 8. The magazine claims Genoot and Ho granted the Trumps a 20% stake in mining equipment, while Hut 8 retained control of sites, daily operations, and back-office functions. Eric Trump reportedly told CoinDesk the company needed a name incorporating “America” and “Bitcoin,” eventually settling on American Bitcoin.
Perhaps most controversially, Forbes asserted that approximately 70% of American Bitcoin’s cryptocurrency holdings came from selling shares and purchasing BTC directly, rather than from actual mining operations. The magazine detailed a series of share sales between September 2023 and March 2024 totaling roughly $350 million, used to acquire bitcoin at prices that have since declined, creating a significant value gap.
Forbes further claimed the company’s actual mining costs ran at approximately $47,000 per bitcoin before overhead, with all-in costs approaching $90,000 – substantially above market rates.
The public confrontation between Eric Trump and Forbes highlights growing scrutiny of cryptocurrency ventures associated with prominent political figures, particularly as digital asset regulation remains a contentious topic in Washington.
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10 Comments
Bitcoin mining is a complex and rapidly evolving industry. I appreciate the effort by Forbes to investigate American Bitcoin, but it’s important to consider all perspectives before drawing conclusions. What do you think are the key factors to watch as this story develops?
Agreed, there seem to be some strong political undertones that could be obscuring the real business and technological issues at play. An objective assessment would be valuable.
Eric Trump’s strong response suggests American Bitcoin may have something to defend. However, the Forbes report also raises valid questions. I’m curious to see how this plays out and whether an independent audit or investigation could shed more light on the situation.
Agreed, an impartial assessment would be valuable in determining the merits of the claims on both sides. This is a complex issue that deserves a thoughtful, evidence-based approach.
This certainly seems like a politically charged issue. I’m curious to learn more about the details and claims from both sides. Do you think there’s an objective way to assess the merits of the Forbes report and Eric Trump’s response?
That’s a good point. It would be helpful to have a more in-depth, impartial analysis of the facts and claims involved here.
Cryptocurrency and digital assets are a hot-button topic, so I’m not surprised to see this kind of back-and-forth. While I don’t have a strong opinion yet, I’m interested in learning more about the claims on both sides and how they stack up against the facts.
That’s a prudent approach. Maintaining an open mind and focusing on the facts will be important as this debate continues.
As someone with an interest in the mining and energy sectors, I’ll be following this story closely. The growth and operations of American Bitcoin seem noteworthy, but the political accusations add a layer of complexity. I hope more clarity emerges soon.
Same here. The intersection of cryptocurrency, energy, and politics makes for a fascinating, if somewhat murky, situation. Unbiased reporting will be key.