Forbes dey attack Eric Trump dem American Bitcoin: “MAGA” feeling-arb vs cost mismatch
Forbes dey claim say public miner wey get link to Eric Trump, American Bitcoin (ABTC), no be so‑so "cash‑printing" business but more like one "MAGA investors sentiment" arbitrage bet. Dem talk say ABTC raise about $351M by selling roughly 158M shares since e list for Nasdaq last September, den spend about $390M to buy Bitcoin.
The report dey question the miner economics. Forbes estimate say ABTC mining cost na about $58,000, but if you add depreciation, total cost fit reach about $90,000—wey pass the current BTC price. E still flag operational risk, like say the company reportedly get only two full‑time employees. Equipment‑financing agreements fit force make mined BTC cover rig costs if Bitcoin no rebound.
ABTC stock don reportedly drop about 92% from e peak, with estimated investor losses near about $500M. Eric Trump reply for X, comot Forbes story, talk say dem get 7,000+ BTC holdings, about 90,000 mining machines, and 58% Q4 BTC balance growth.
Crypto‑trader takeaway: na narrative‑and‑funding risk headline dis for Bitcoin miner equities, join to BTC downside exposure, cost assumptions, and financing terms. Expect higher volatility and tighter scrutiny on miner balance sheets and cash‑flow assumptions around ABTC and peers.
Bearish
Di tok tok di story show say di claim wey ABTC dey make about dia mining economics no fit match wetin dem really dey carry for cost (depreciation), plus di financing structure fit make dem force to use BTC take pay rig cost wen BTC price dey fall. E still paint di equity story as say na sentiment dey drive share sales, no be sustainable operating profit. Dis combination fit put pressure on miner equity multiples short-term and make people see say leverage/solvency risk don increase, even if di underlying BTC market never change. Long term, if people continue to check balance sheets and cash-flow assumptions, e fit cap di upside for miner stocks as traders go demand higher margins of safety.