American Bitcoin Corp., a mining company associated with the Trump family, has reported a significant net loss for the fourth quarter of the fiscal year, amounting to $59 million. This downturn is primarily attributed to a notable decline in bitcoin prices, which has adversely affected the valuation of its digital asset holdings. Based in Miami, the firm is publicly traded on the Nasdaq under the ticker ABTC, and its revenue for the three months ending December 31 was reported at $78.3 million, indicating an increase from $64.2 million during the same period the previous year. However, this figure fell short of analyst expectations, which had suggested revenues would reach $79.6 million.
Over the entirety of the year, American Bitcoin generated a total revenue of $185.2 million. The volatility in the bitcoin market has extended to a 23% downturn during the fourth quarter alone, creating challenges for companies that maintain substantial reserves of the cryptocurrency on their balance sheets. Under new regulations from the Financial Accounting Standards Board, organizations are required to adjust the valuations of their digital asset holdings to market value with each reporting cycle. Consequently, American Bitcoin disclosed a non-cash loss of $227 million linked to the revaluation of its bitcoin treasury.
As the year closed, American Bitcoin’s inventory included 5,401 BTC, which has since increased to over 6,000 BTC, as stated by co-founder Eric Trump. Approximately one-third of these holdings were accumulated through the company’s mining operations, with the remaining two-thirds garnered through open-market purchases and strategic dealings. American Bitcoin is notably backed by Donald Trump’s family, with Eric Trump and Donald Trump Jr. holding a collective 20% stake in the operation.
The firm went public in September, just weeks ahead of bitcoin reaching its all-time high above $126,000. However, the stock has since plummeted nearly 90% from a high near $9 a share last year. In early trading, shares crept up by 2% to $1.06 but remain down approximately 22% compared to a year ago. During the fourth quarter, the company raised $150.5 million through an at-the-market stock offering, utilizing these funds to bolster its bitcoin holdings. Management noted that this equity issuance effectively increased per-share exposure to bitcoin by nearly 50%.
American Bitcoin operates large-scale mining facilities and benefits from the infrastructure support provided by its majority owner, Hut 8. The company announced that it achieved a 53% gross margin in bitcoin mining during the fourth quarter, demonstrating that production costs remained favorable compared to prevailing market prices, despite the overall downturn. CEO Mike Ho remarked that 2025 marks a pivotal year for the company as its first year as a standalone public entity, emphasizing the critical nature of expanding its mining capabilities and bitcoin reserves.
The fourth-quarter loss stands in stark contrast to the profit of $3.48 million reported during the same period last year, as well as a profit in the preceding quarter. In response to the market challenges, industry peer companies have adopted varied strategies. Some large operations, including Marathon Digital Holdings and Riot Platforms, are investigating the conversion of segments of their operations to support artificial intelligence infrastructure. Others have opted to liquidate portions of their bitcoin reserves to enhance liquidity.
Concurrently, Hut 8, which holds a majority interest in American Bitcoin, announced its own fourth-quarter results, stating it ended the year with an 8,500-megawatt development pipeline along with securing a new $200 million revolving credit facility with Two Prime. Additionally, Hut 8 expanded its existing credit facility with Coinbase to $200 million, boosting its total available credit capacity to $400 million.
