American Bitcoin posted a mixed Q1 result: a net loss of $81.8 million, yet its Bitcoin reserves expanded to 7,021 BTC by the end of March. The growth reflects both increased mining capacity and an active accumulation strategy.
Mining Revenue Declines, Operating Costs Surge
Mining revenue fell to $62.1 million in Q1, down from $78.3 million in the previous quarter. Total operating expenses surged to $150.7 million. The company cited a roughly 22% drop in Bitcoin prices and shrinking digital asset reserves as key factors. Losses related to asset reserve valuation hit $117.2 million, significantly impacting quarterly results.
Record BTC Production and Strategic Purchases
Despite challenging market conditions, American Bitcoin mined a record 817 BTC in Q1, its highest-ever quarterly output. It also purchased an additional 803 BTC to boost strategic reserves. CEO Mike Ho emphasized that no cash sales were made during the period, and core business lines remained profitable.
CEO Mike Ho explained: “Excluding non-cash valuation adjustments mandated by FASB accounting standards, American Bitcoin remains profitable in its main operations. No Bitcoin was sold during the quarter.”
The mining division maintained gross margins above 50%. By focusing on energy costs and operational efficiency, the cost per mined Bitcoin dropped from $46,900 in Q4 to $36,200 in Q1.
Eric Trump: Cost Advantage Stands Out
Co-founder Eric Trump noted that the quarter demonstrated the company's large-scale, efficient Bitcoin accumulation. He highlighted that just eight months after listing, American Bitcoin had become the 16th largest public Bitcoin holder globally.
Eric Trump stated that the company mines BTC at prices 47% below spot market rates while continuously expanding its strategic reserves.
Shares of American Bitcoin closed at $1.25 on Wednesday, up 1.63% for the day. The stock has gained over 40% in the past month but fallen nearly 72% over the last six months.