Feb 26 (Reuters) - American Bitcoin, backed by two of U.S. President Donald Trump's sons, swung to a fourth-quarter loss on Thursday amid a weakness in the digital assets space.
Concerns over stretched valuations in artificial-intelligence stocks and uncertainty around the timing and scale of U.S. Federal Reserve rate cuts have pressured risk assets, dragging bitcoin to quarterly lows and leaving many so-called digital asset treasury (DAT) companies on an unsteady footing.
American Bitcoin, a miner of the world's largest cryptocurrency, sells it at a premium or holds for a surge in the price. However, in the reported quarter the sector saw a selloff with bitcoin tumbling nearly 23% in the three months.
The company runs industrial-scale mining operations, relying largely on infrastructure provided by Hut 8 to produce bitcoin at costs below prevailing market prices.
Stocks of crypto treasury companies typically move in line with the token's price as shifts in prices directly affect the value of reserves.
Shares of American Bitcoin, which was co-founded by Eric Trump and where Donald Trump is a stockholder, have lost nearly 22% in the past twelve months.
Sustained pressure on the shares of crypto treasury companies could complicate the ability of these firms to raise additional capital to mine more crypto tokens at an industrial scale, the crux of their business model.
The company, however, holds over 6,000 bitcoin presently, up from the 5,401 they held at 2025 year-end, Eric Trump said in a statement.
The company posted a net loss of $59.45 million in the fourth quarter, compared with a $3.48 million profit in the year ago period. The company had also reported a profit in the previous quarter.
American Bitcoin reported revenue of $78.3 million in the three months ended December 31, compared with $64.2 million in the prior-year period. Analysts were expecting revenue of $79.6 million.
(Reporting by Pritam Biswas in Bengaluru; Editing by Shailesh Kuber)
