Trump Companies Suffer Millions in Bitcoin Losses as Crypto Strategy Backfires

Donald Trump and his family have accumulated billions in new wealth since Inauguration Day, much of it tied to cryptocurrency ventures. However, recent struggles in the crypto sector are threatening those gains, including a second consecutive reported loss for Eric Trump’s American Bitcoin Corp, a wind-powered bitcoin mining company.

The $82 million loss, reported in the first quarter of 2026, stems largely from Bitcoin’s prolonged price decline. This mirrors the struggles of Trump Media and Technology Group, the parent company of the former president’s Truth Social platform, which has lost $1.1 billion since its founding—almost entirely due to Bitcoin-related losses.

Both companies have adopted a bitcoin treasury strategy, a business model that relies on accumulating as much Bitcoin as possible. The approach works only if Bitcoin’s price rises, but over the past seven months, the cryptocurrency has mostly declined. Bitcoin peaked at $126,198 late last year before collapsing to $64,856 in February. Since the end of the first quarter, it has partially rebounded to around $80,000.

How the Bitcoin Treasury Strategy Works—and Why It’s Failing

The bitcoin treasury strategy was pioneered by investor Michael Saylor, who used it at his company, Strategy, to acquire over 813,000 bitcoins. The strategy initially drove Strategy’s stock price from around $50 in January 2024 to more than $405 per share by July 2024. Saylor became a vocal advocate for both the strategy and Bitcoin itself, and Eric Trump has frequently cited him as a model for his own ambitions.

However, Saylor’s strategy has since backfired. His company’s stock price has crashed to around $181, and its Bitcoin holdings have lost significant value. Strategy reported a $12.5 billion loss in the first quarter of 2026 and has hinted at shifting from passive accumulation to actively managing its Bitcoin reserves.

Could Regulatory or Market Shifts Save Trump’s Crypto Investments?

For Eric Trump and his father, the strategy could regain profitability if Bitcoin’s price continues to recover. Meanwhile, the federal government—overseen by Donald Trump—may soon intervene to boost Bitcoin’s value. Two key opportunities for the Trump administration to support Bitcoin in the coming weeks include:

• Passage of the CLARITY Act: This proposed legislation aims to establish cryptocurrency as a legitimate investment tool in the U.S., providing much-needed regulatory clarity. The bill has faced delays in Congress, partly due to Democratic concerns over potential conflicts of interest.