American Bitcoin Reports $57.2M Q2 Loss as BTC Reserve Grows to 8,002

American Bitcoin Corp., the Bitcoin mining operation co-founded by Eric Trump and majority-owned by Hut 8, posted a $57.2 million net loss for the second quarter on Aug. 3. The figure includes a $71.2 million loss on digital assets, even as the company achieved record quarterly production and grew its Bitcoin reserve to roughly 8,002 BTC, according to its official quarterly results.

The loss narrowed from $81.8 million in the first quarter. Revenue climbed from $62.1 million to $67 million, while adjusted EBITDA stayed negative at $45 million — an improvement from the $91.3 million loss recorded three months earlier. The sequential improvement comes amid a broader industry pattern in which publicly traded miners have prioritized balance-sheet Bitcoin accumulation over immediate profitability, a strategy pursued by firms including Marathon Digital, Riot Platforms, and CleanSpark as they position around Bitcoin's fixed supply schedule.

Digital Asset Loss Drives Quarterly Deficit

The digital asset loss, while down from $117.2 million in Q1, remained the company's largest expense and exceeded American Bitcoin's entire quarterly mining revenue. Depreciation and amortization contributed an additional $28.2 million, and general and administrative expenses totaled $7.7 million.

The $71.2 million figure is an accounting loss recorded within operating expenses. It should not be confused with the cash cost of producing Bitcoin or treated as an equivalent cash outflow. American Bitcoin did not disclose what portion of the loss stemmed from completed transactions during the period. Under fair-value accounting rules adopted by the FASB for fiscal years beginning after December 2024, companies holding Bitcoin on their balance sheets must remeasure holdings to market value each reporting period, meaning price declines directly flow through earnings even when no coins are sold.

The company also recorded an $18.3 million gain on derivatives, which reduced its loss before taxes to $55.7 million. The adjusted EBITDA calculation excludes several items, including depreciation, derivative gains, and stock-based compensation. American Bitcoin cautions that adjusted EBITDA is a company-defined measure and should not replace results reported under generally accepted accounting principles (GAAP).

Record Production Lifts Revenue as Costs Hold Steady

American Bitcoin mined approximately 932 BTC during the quarter, up from 817 BTC in Q1. This marked the company's highest quarterly output since launching in March 2025 and represented about 26% of all Bitcoin it has mined to date. The production growth reflects American Bitcoin's rapid scale-up since its March launch, when it began operations backed by Hut 8's infrastructure footprint.

Revenue per Bitcoin mined declined roughly 5% to $71,900 as Bitcoin prices weakened. However, the cost to mine each coin held near $36,500, compared with $36,200 in the prior quarter. The company attributed the modest increase to higher energy costs at certain locations. The roughly $36,500 cash cost per BTC places American Bitcoin within the range reported by mid-tier publicly traded peers, several of whom have cited sub-$40,000 production costs as a competitive benchmark.

Based on the reported $67 million in revenue and $34 million in direct revenue costs, mining gross profit was approximately $33 million, yielding a margin of roughly 49%. That supports management's assertion that the figure remained close to 50% despite a 12% quarterly decline in Bitcoin's price.

The operational fleet reached approximately 58,999 miners with 25 EH/s of computing power. American Bitcoin also completed energization of 11,298 newer machines at Hut 8's Drumheller facility in April, adding roughly 3.05 EH/s. Network-wide Bitcoin mining difficulty has continued to adjust upward through 2025 as operators globally deploy next-generation hardware, meaning that maintaining output growth requires continuous fleet expansion.

Nearly 39% of the Bitcoin Reserve Remains Pledged

American Bitcoin's total holdings increased by approximately 981 BTC during the quarter, rising from 7,021 BTC to 8,002 BTC. Mining accounted for 932 BTC of the increase.

Not all 8,002 BTC are unencumbered, however. Approximately 3,090 BTC — nearly 39% of the reserve — remain pledged under miner purchase agreements with Bitmain. American Bitcoin continues to include these coins in its total because it retains redemption rights and ongoing economic exposure.

The company's Q1 SEC filing classified the pledged holdings as restricted Bitcoin and 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.

American Bitcoin acquired large batches of Bitmain equipment under agreements that allowed it to pledge Bitcoin instead of paying the full purchase price in cash. Redemption periods typically run about 24 months, though some extension options may apply. This equipment-financing structure has been used by other mining firms as an alternative to equity raises or conventional debt, though it ties a portion of mined output to future redemption obligations.

Reserve Growth Has Not Relieved Pressure on ABTC Shares

American Bitcoin reported that its satoshis per share rose 11% to approximately 10,989 during the quarter. Holdings grew 14%, while outstanding shares increased roughly 3%.

These figures reflect the one-for-fifteen reverse stock split completed in July. According to the company's SEC filing on the split, issued shares decreased from approximately 1.09 billion to about 73 million. Split-adjusted trading commenced July 6 under the existing ABTC ticker.

As previously reported by crypto.news, American Bitcoin's reserve surpassed 8,000 BTC in July as the company continued accumulating coins despite share-price pressure. The reverse split raised ABTC's quoted price without altering its underlying market value.

ABTC had declined more than 95% from its peak by mid-July. The drop occurred even as the company expanded its reserve and lowered production costs compared with late 2025. The disconnect between reserve accumulation and equity-market valuation mirrors a challenge faced by several publicly traded mining stocks, where investors have weighed dilution risk, accounting losses, and execution uncertainty against the value of held Bitcoin.

Chief Executive Mike Ho stated that the company believes Bitcoin's "long term compounding will outperform our cost of capital." Eric Trump described the company's objective as "relentless growth." Both statements reflect management expectations rather than assured financial outcomes.

The company's Aug. 3 earnings call and subsequent SEC filings may provide additional detail on Bitmain liabilities, mining expansion plans, and the treatment of digital asset losses. Market participants will also be monitoring whether increased production can push adjusted EBITDA toward profitability without requiring the company to sell its Bitcoin reserve.

Source: CryptoNewsNet | Original article via crypto.news