Invest ideasNews
29 Apr 2026, 00:34
Eric Trump calls Forbes' report of American Bitcoin being a predatory arbitrage vehicle 'Chinese propaganda'
Eric Trump went after Forbes on X after the magazine ran a story on American Bitcoin (ABTC), the Trump-linked mining company now trading on the Nasdaq (NDAQ). Eric said, “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!” Eric also said that American Bitcoin did not exist just over a year ago, but now holds more than 7,000 BTC. He said the company is the 16th largest publicly traded bitcoin company in the world, with nearly 90,000 miners, 28 exahash of capacity, and American energy behind its operations. He also said the company grew its bitcoin balance by 58% in Q4, mined BTC at a 53% discount to the market price, and reported $78.3 million in Q4 revenue, up 22% from the prior quarter. Forbes calls American Bitcoin a money laundering scheme with a twist Forbes said Eric joined a February earnings call and pitched American Bitcoin as a fast-rising name in crypto. He said, “We are fast becoming the leader in the bitcoin world, and I truly think we have the greatest brand of all.” He also thanked Mike Ho, Asher Genoot, Matt Prusak, and “everybody at American Bitcoin.” The magazine then pointed to a filing that said American Bitcoin had only two full-time employees one month after that call. Those two are likely Mike, the CEO, and Matt, the president. Mike also works at Hut 8 (HUT) as chief strategy officer. A former investor-relations worker at one of Mike’s other companies now lists herself as chief of staff at American Bitcoin. Another worker says she became social media manager in January. Asher is executive chairman and sits on a five-person board with Mike and three independent directors. When American Bitcoin hit public trading on Sept. 3, investors valued it at $13.2 billion, even though it had about $270 million in BTC. Since then, its diluted stock has fallen 92% from the top. Forbes estimated Eric’s wealth rose from $190 million to $280 million, while retail investors lost about $500 million. Forbes tracks the share sales, bitcoin buys, mining costs, and foreign investor angle The company started after the 2024 election. Two weeks after Trump defeated Kamala Harris, the company that became American Bitcoin was formed in Delaware. It first looked like an AI data-center plan. Hussain Sajwani, the Dubai developer tied to the Trump family through a golf project, came to Mar-a-Lago and announced a $20 billion plan for U.S. data centers. Soon after, Eric and Don Trump Jr. backed American Data Centers, which Eric called “crucial for the development of AI infrastructure in the United States.” One month later, the plan changed. Eric and Don Jr. connected with Asher and Mike, who already had Hut 8, a data-center and bitcoin-mining business. Bitcoin rewards had been cut by 50%, which made mining harder on the profit side. Forbes said Asher and Mike gave the Trumps a 20% stake in mining equipment, while Hut 8 kept the sites, daily operations, back-office work, and some executives. Eric later told CoinDesk the name needed two words, “America” and “Bitcoin,” before the final name became American Bitcoin. Eric has also said banking pressure pushed him into DeFi. He said, “I got canceled by every single bank in the country. Every single one of the big banks, they started canceling us.” Forbes said Capital One (COF) and JPMorgan Chase (JPM) closed some Trump accounts in 2021, but lenders still worked with the family. From January 2021 to mid-2022, Trump, Eric, and Don Jr. refinanced almost $700 million in debt. Forbes said about 70% of American Bitcoin’s crypto came from selling shares and buying BTC, not from mining. In the first 27 days after listing, the company sold 11 million shares for $90 million, paid about $2 million in costs, and bought roughly 725 BTC. From early October to mid-November 2025, it sold 7 million shares for $44 million, and in late November, it sold 47 million shares for about $106 million. From Jan. 1 to March 25, American Bitcoin sold 84 million shares for $111 million and bought about 1,430 BTC, according to Forbes estimates, with total crypto buys at $525 million, now worth about $390 million, leaving a $135 million gap. Mining ran at about $47,000 per BTC before full costs, while the all-in cost sat near $90,000. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .
28 Apr 2026, 23:12
Tether Revolutionizes with Modular BTC Mining
Tether is developing modular BTC mining systems with Canaan and ACME. By independently upgrading components, it reduces costs. Hash rate efficiency is critical during BTC price drops. The sector is...
28 Apr 2026, 22:12
Bernstein Lowers IREN Target to $100: AI Outperform
Bernstein lowered the IREN price target to $100 but maintained the AI-focused Outperform. The Microsoft deal is key in the transition from Bitcoin mining to AI cloud. 2.6 billion $ revenue expected...
28 Apr 2026, 20:40
Tether Picks Canaan Modules to Power Immersion Mining Sites
Canaan Inc. landed a follow-on order from Tether for custom high-density mining hash board modules set for deployment at a Tether-affiliated facility in South America. Key Takeaways: Canaan secured a follow-on order from Tether for custom hash board modules deploying to South America in 2026. The modular system, co-designed with ACME Swisstech, cuts operational complexity
28 Apr 2026, 19:43
IREN dips 8% ahead of Q3 results—can AI shift offset mining losses?
More on IREN Limited IREN: I Am Still Bullish Despite The Prove-It Phase IREN: Hyperscaler Ambitions Vs. $6 Billion Dilution Risk IREN Vs. Nebius: One Dilutes, The Other Compounds Block sees lowest interest from short sellers in March among crypto firms with over $2B market cap Nvidia's H100 GPU rental prices surge nearly 40% in 6 months: SemiAnalysis
28 Apr 2026, 18:50
Bernstein Predicts Iren Will Completely Exit Crypto Mining Within Years — A Strategic Pivot to AI Cloud
BitcoinWorld Bernstein Predicts Iren Will Completely Exit Crypto Mining Within Years — A Strategic Pivot to AI Cloud Investment bank Bernstein has released a report predicting that Iren (IREN), formerly known as Iris Energy, will completely exit the cryptocurrency mining business within the next few years. The firm is rapidly transforming into a high-speed artificial intelligence (AI) cloud provider, as reported by Decrypt. This strategic pivot marks a significant shift in the digital asset mining landscape. Bernstein’s Analysis of Iren’s Strategic Shift Bernstein lowered its price target for IREN to $100 from $125. However, the bank maintained its outperform rating. The downward revision stems from two factors unrelated to Iren’s core business outlook. First, the company is reducing the scale of its Bitcoin mining operations. Second, an increase in outstanding shares followed a recent stock issuance. Bernstein clarified that its AI-related targets for the company remain unchanged. The bank sees Iren’s pivot as a logical evolution. The company is leveraging its existing infrastructure for high-performance computing. This move aligns with broader industry trends. Background on Iren’s Transformation Iren started as a Bitcoin mining firm under the name Iris Energy. The company operates large-scale data centers. These facilities house both mining rigs and AI computing hardware. The shift toward AI cloud services began in late 2023. Rising energy costs and volatile Bitcoin prices drove this decision. The company now offers cloud computing services to AI startups. These services include GPU clusters for machine learning tasks. This transition mirrors moves by other mining firms like Hive Blockchain and Core Scientific. Financial Implications of the Pivot The stock issuance mentioned by Bernstein raised capital for AI infrastructure. Iren sold additional shares to fund data center upgrades. This dilution impacted the stock price target. However, Bernstein views this as a short-term adjustment. The company’s AI revenue is expected to grow significantly. Bernstein projects that AI services will account for over 60% of Iren’s revenue by 2027. This compares to less than 10% in 2024. The mining segment will shrink accordingly. Market Reaction and Industry Context The news has generated mixed reactions among investors. Some see the pivot as a necessary survival strategy. Others worry about execution risks in a competitive AI cloud market. The stock price experienced moderate volatility following the report. Iren’s move reflects a broader trend in the crypto mining industry. Many firms are diversifying into AI computing. The demand for AI processing power has surged since 2023. This creates a natural hedge against Bitcoin price fluctuations. Key Factors Driving the Exit from Crypto Mining Energy costs: Bitcoin mining consumes massive amounts of electricity. Rising energy prices reduce profitability. Regulatory uncertainty: Governments worldwide are tightening crypto regulations. This creates compliance burdens. Hardware competition: Specialized mining ASICs become obsolete quickly. This requires constant capital reinvestment. AI demand: Cloud AI services offer higher and more stable margins. This attracts infrastructure investors. Bernstein’s Track Record in Crypto Analysis Bernstein is a respected Wall Street investment bank. Its research division covers digital assets extensively. The bank has correctly predicted several industry trends. For example, Bernstein forecasted the 2023 Bitcoin rally. It also anticipated the rise of Bitcoin ETFs. The bank’s analysis carries weight with institutional investors. Its reports often move markets. The maintain outperform rating suggests confidence in Iren’s long-term strategy. Comparison with Other Mining Firms Company Primary Focus AI Pivot Status Iren (IREN) AI cloud services Active transition Hive Blockchain Green mining + AI Partial pivot Core Scientific Bitcoin mining Exploring AI Riot Platforms Bitcoin mining No pivot Timeline of Iren’s Evolution Iren’s journey from mining to AI cloud has several milestones. In 2021, the company went public as Iris Energy. It focused on sustainable Bitcoin mining using hydroelectric power. By 2023, the company began testing AI workloads. In early 2024, it rebranded to Iren to reflect its broader focus. The company now operates multiple data centers across North America. Expert Opinions on the Pivot Industry analysts view the shift positively. “Iren is making a smart bet on AI infrastructure,” says one technology analyst. “The company’s data center expertise translates well to cloud computing.” Another expert notes that the move reduces exposure to crypto volatility. “Investors should watch for execution milestones,” the expert adds. Potential Risks and Challenges The transition is not without risks. The AI cloud market is dominated by giants like Amazon and Microsoft. Iren must compete on price and performance. The company also faces capital expenditure requirements. Upgrading data centers for AI workloads costs billions. Another risk involves the Bitcoin mining equipment. Iren must sell or repurpose its ASIC miners. This could generate one-time charges. However, the company’s strong balance sheet provides a buffer. Conclusion Bernstein predicts Iren will fully exit crypto mining within years. The company’s pivot to AI cloud services represents a strategic evolution. While the stock price target was lowered, the bank maintains a positive outlook. Iren’s transformation reflects broader industry trends. Investors should monitor the company’s AI revenue growth and execution progress. The crypto mining landscape continues to evolve rapidly. FAQs Q1: Why does Bernstein predict Iren will exit crypto mining? Bernstein believes Iren will fully exit crypto mining within years because the company is pivoting to AI cloud services. The bank sees higher growth potential in AI computing compared to Bitcoin mining. Q2: What is Iren’s new price target from Bernstein? Bernstein lowered its price target for IREN to $100 from $125. The reduction is due to decreased Bitcoin mining scale and increased share count from a stock issuance. Q3: How will Iren’s AI cloud business generate revenue? Iren will offer GPU clusters and high-performance computing services to AI startups and enterprises. This includes machine learning training and inference workloads. Q4: What are the risks of Iren’s pivot to AI cloud? Key risks include competition from major cloud providers, high capital expenditure requirements, and execution challenges in transitioning infrastructure from mining to AI. Q5: When did Iren begin its transformation? Iren started testing AI workloads in 2023 and rebranded from Iris Energy to Iren in early 2024. The full transition is expected to take several years. This post Bernstein Predicts Iren Will Completely Exit Crypto Mining Within Years — A Strategic Pivot to AI Cloud first appeared on BitcoinWorld .
