While the broader cryptocurrency market enjoys a robust recovery, several companies with ties to former US President Donald Trump and his family are struggling to keep pace, plagued by unique operational and regulatory challenges.
Market Rally Bypasses Key Trump-Linked Entities
Fueled by weak economic data boosting expectations of a Federal Reserve interest rate cut, Bitcoin has staged a powerful comeback. The digital asset climbed from a low of approximately $80,500 on November 21 to $92,150 by Thursday afternoon, marking a 14.5% increase. This environment typically benefits risk assets, including crypto-linked firms.
However, companies associated with the Trump family have largely missed this upswing. American Bitcoin, a mining company co-founded by Donald Trump Jr. and Eric Trump, has seen its stock plummet about 47% since November 20, trading at $2.42. Eric Trump attributed a sharp crash on Tuesday to the unlocking of pre-merger private placement shares, allowing early investors to sell. Despite a minor 10.5% bounce since Tuesday's close, the stock remains deeply depressed.
ALT5 Sigma's Deepening Troubles and Nasdaq Scrutiny
The situation is more complex for ALT5 Sigma, a digital asset treasury company. This summer, ALT5 partnered with World Liberty Financial, a firm co-founded by Donald Trump, his sons, and advisor Steve Witkoff. As part of the deal, Zach Witkoff (Steve's son) became board chairman, and Eric Trump took a role as board observer and strategic advisor.
Since then, ALT5 has been mired in turmoil. The company suspended its CEO, delayed its Q3 earnings report, and dismissed its acting CEO and COO just before Thanksgiving. This week, it received two non-compliance notices from the Nasdaq Stock Market. One was for the delayed earnings filing, with a deadline of January 20 to submit a compliance plan. The second notice resulted from a board resignation that left the company violating audit committee rules, with a compliance deadline set for November 25, 2026, or its next annual meeting.
An ALT5 spokesperson stated the company is actively addressing these issues and that they do not impact its growth strategy. The Trump family's involvement, highlighted when Zach Witkoff, Eric, and Don Jr. rang the Nasdaq opening bell in August, now poses a potential dilemma for exchange officials regarding the company's listing future.
Trump Media Bucks the Trend, White House Responds
A notable exception is Trump Media & Technology Group (TMTG), which runs the Truth Social platform. Its stock has risen nearly 16% since its November 21 low, though it remains down about 19% over the past month.
The White House responded to queries, dismissing "fabricated conflicts of interest" and reaffirming the administration's pro-crypto stance. It cited executive actions and support for legislation like the GENIUS Act as part of its goal to make the US the "crypto capital of the world."
As the crypto market recovers, the divergent fortunes of these firms underscore how company-specific issues and regulatory compliance can outweigh broader market tailwinds, even for ventures with high-profile political connections.
