American Bitcoin Corp., the Bitcoin miner co founded by Eric Trump and majority owned by Hut 8, reported a $57.2 million net loss for the second quarter on Aug. 3.
Summary
- American Bitcoin reported a $57.2 million loss after recording $71.2 million in digital asset losses.
- Bitcoin holdings rose 14% to 8,002 BTC, including 3,090 BTC pledged under Bitmain purchase agreements.
- Mining output reached a record 932 BTC while quarterly revenue increased 8% to $67 million.
- American Bitcoin’s mining cost remained near $36,500 per coin, broadly unchanged from the previous quarter.
- Adjusted EBITDA improved to a $45 million loss from a $91.3 million loss in March.
The result included a $71.2 million loss on digital assets, even as the company delivered record production and expanded its reserve to approximately 8,002 BTC, according to its official quarterly results.
The loss narrowed from $81.8 million in the first quarter. Revenue increased from $62.1 million to $67 million, while adjusted EBITDA remained negative at $45 million, compared with a $91.3 million loss three months earlier.
American Bitcoin’s asset loss drove the quarterly deficit
The digital asset loss remained the largest expense in the quarter. It fell from $117.2 million in the first quarter to $71.2 million but still exceeded American Bitcoin’s entire quarterly mining revenue. Depreciation and amortization added another $28.2 million, while general and administrative expenses reached $7.7 million.
The $71.2 million figure is an accounting loss recorded within operating expenses. It should not be confused with the cost of producing Bitcoin or automatically treated as an equivalent cash outflow. American Bitcoin did not disclose how much of the loss resulted from completed transactions during the quarter.
The company also recorded an $18.3 million gain on derivatives, reducing its loss before taxes to $55.7 million. Its adjusted EBITDA calculation excludes several items, including depreciation, derivative gains and stock compensation.
American Bitcoin warns that adjusted EBITDA is a company defined measure and should not replace results reported under generally accepted accounting principles.
Record mining raised revenue while costs stayed flat
American Bitcoin mined approximately 932 BTC during the quarter, up from 817 BTC in the first quarter. The result marked its highest quarterly production since the business launched in March 2025 and represented about 26% of all Bitcoin it has mined since then.
Revenue per Bitcoin mined fell about 5% to $71,900 as Bitcoin prices weakened. However, the cost to mine each coin remained near $36,500, compared with $36,200 in the previous quarter. The company attributed the increase to higher energy expenses at selected locations.
Based on the reported $67 million in revenue and $34 million in direct revenue costs, mining gross profit was approximately $33 million. That produces a margin of roughly 49%, supporting management’s statement that the figure remained close to 50% despite a 12% quarterly decline in Bitcoin’s price.
The operational fleet reached about 58,999 miners with 25 EH/s of computing power. American Bitcoin also completed the energization of 11,298 newer machines at Hut 8’s Drumheller location in April, adding approximately 3.05 EH/s.
Nearly 39% of the Bitcoin reserve remains pledged
American Bitcoin’s holdings increased by approximately 981 BTC during the quarter, rising from 7,021 BTC to 8,002 BTC. Mining produced 932 BTC, accounting for most of the increase.
However, not all 8,002 BTC are freely available. Approximately 3,090 BTC, or nearly 39% of the reserve, remain pledged under miner purchase agreements with Bitmain. American Bitcoin still includes those coins in its total because it retains redemption rights and continued economic exposure.
The company’s first quarter SEC filing classified the pledged holdings as restricted Bitcoin. It also recorded a miner purchase liability of $364.3 million as of March 31. The latest results did not provide an updated liability figure for June 30.
The company acquired large batches of Bitmain equipment through agreements that allowed it to pledge Bitcoin instead of paying the full purchase price in cash. Redemption periods generally run for about 24 months, although some extension options may apply.
Reserve growth has not removed pressure on ABTC shares
American Bitcoin said its satoshis per share increased 11% to approximately 10,989 during the quarter. Holdings grew 14%, while outstanding shares increased about 3%.
The figures account for the one for fifteen reverse stock split completed in July. According to the company’s SEC filing on the split, issued shares fell from approximately 1.09 billion to about 73 million. Split adjusted trading began on July 6 under the existing ABTC ticker.
As crypto.news previously reported, American Bitcoin’s reserve surpassed 8,000 BTC in July as the company continued accumulating coins despite pressure on its share price. The earlier update also showed that the reverse split raised ABTC’s quoted price without changing its underlying market value.
ABTC had fallen more than 95% from its peak by mid July. The decline came even as the company expanded its Bitcoin reserve and lowered its production cost compared with late 2025.
Chief Executive Mike Ho said the company believes Bitcoin’s “long term compounding will outperform our cost of capital.” Eric Trump said its objective was “relentless growth.” Both statements describe management’s expectations rather than assured financial results.
The company’s Aug. 3 earnings call and any later SEC filing could provide further details about Bitmain liabilities, mining expansion and the treatment of its digital asset losses. Investors will also be watching whether higher production can move adjusted EBITDA toward profitability without requiring the company to sell its Bitcoin reserve.
