Eric Trump's American Bitcoin Expands Mining By 12% But ABTC Plunges 7%

American Bitcoin (NASDAQ:ABTC) purchased 11,298 ASIC miners adding 3.05 exahash per second to expand owned capacity by 12% to 28.1 EH/s, but the stock plunged 7%, breaking below the critical $1 psychological level.

The 12% Capacity Expansion

The new machines are more efficient at 13.5 joules per terahash compared to the fleet average of 16 J/TH. Lower joule ratings mean less electricity cost per Bitcoin mined. 

The equipment will be deployed in March 2026 at the Drumheller site in Alberta.

Once operational, the company will run 58,999 miners at roughly 25 EH/s. The difference between owned capacity (28.1 EH/s) and operational capacity (25 EH/s) exists because some machines are not yet energized or deployed at active sites.

For context, the largest public Bitcoin (CRYPTO: BTC) miners currently operate around 50 EH/s, making American Bitcoin roughly half the size of industry leaders.

Eric Trump, co-founder and chief strategy officer, emphasized the strategic focus: “Grow American-owned, professionally operated hashrate. That’s how we protect the network, drive innovation, and lead the future of Bitcoin in America.”

The Accumulation Strategy

American Bitcoin’s business model centers on accumulating Bitcoin at costs below spot prices.

The company mined Bitcoin at a 53% discount relative to spot prices in Q4 2025, emphasizing this fleet expansion reinforces its focus on maximizing Bitcoin accumulation at a structural advantage.

President Matt Prusak emphasized discipline: “Every decision we make is oriented around maximizing Bitcoin accumulation. That’s the discipline our shareholders should expect from us.”

The company ended 2025 with 5,401 BTC on its balance sheet and has since grown holdings to more than 6,000 BTC. 

For full year 2025, American Bitcoin posted $185.2 million in revenue and a net loss of $153.2 million, primarily driven by a $227.1 million non-cash mark-to-market loss on Bitcoin holdings under fair value accounting rules.

The $1 Breakdown

ABTC is down 7%, breaking decisively below the $1 psychological level. 

The stock trades 76% below the 200 EMA at $3.95, illustrating the magnitude of the collapse. 

Stocks that break below $1 often experience accelerated selling due to delisting concerns and institutional selling pressure.

ABTC broke below the lower Bollinger Band at $0.8844, signaling extreme oversold conditions but confirming powerful selling pressure.

Critical support sits at $0.8844, only 7% below current price. Below that, visible support appears around $0.60-$0.80 from historical lows. 

Breaking below $0.88 would put ABTC into freefall toward $0.60-$0.70 with minimal structure between.

Image: Shutterstock