American Bitcoin Corp. (ABTC) shares rose 3.80% to $5.73 at 12:49 p.m. EDT after a volatile morning session, following the company's second-quarter results. The cryptocurrency mining firm reported $67 million in revenue and Bitcoin holdings of about 8,002 BTC. Despite those operational gains, a $71.2 million digital asset impairment charge pushed the company to a net loss of $57.2 million for the quarter.

Impairment Charges Weighed on Results

American Bitcoin recorded the digital asset impairment as an operating expense during the three-month period. Under U.S. generally accepted accounting principles, Bitcoin held on corporate balance sheets has historically been classified as an intangible asset, requiring companies to write down its value when the market price declines but prohibiting upward revisions when it recovers. Although the charge was lower than the $117.2 million reported in the first quarter, it still exceeded total mining revenue. Depreciation and amortization added $28.2 million to quarterly costs.

General and administrative expenses totaled $7.7 million, compared with $6.9 million in the previous quarter. An $18.3 million gain on derivatives helped narrow the pre-tax loss to $55.7 million. The final net loss improved from the $81.8 million deficit reported in the first quarter.

Adjusted EBITDA came in at negative $45 million, up from negative $91.3 million in Q1. American Bitcoin defines this non-GAAP metric as excluding depreciation, derivative impacts, equity-based compensation, and certain other items. The company said the figure is intended to supplement, not replace, financial results prepared under generally accepted accounting principles.

Bitcoin Production Reaches a Record High

The company mined about 932 BTC in the quarter, its highest production level since operations began in March 2025. That compared with roughly 817 BTC mined in the first quarter. The quarter's output represented about 26% of all Bitcoin mined since launch.

Revenue rose 8% from $62.1 million in Q1, although revenue per Bitcoin fell about 5%. Each coin mined generated roughly $71,900 in revenue, down from about $76,000 in the prior quarter. Bitcoin's market price declined approximately 12% over the same period, reflecting a broader pullback in cryptocurrency markets during the quarter.

Production costs were about $36,500 per Bitcoin mined, slightly above the $36,200 reported previously. The company said higher energy spending at certain facilities contributed to the increase. Even so, the gap between revenue and direct mining costs produced about $33 million in gross mining profit, with margins holding near 49%. Mining economics across the industry have been under pressure since the April 2024 Bitcoin halving cut block rewards from 6.25 BTC to 3.125 BTC, increasing the importance of operational efficiency and low-cost energy access for producers.

Bitcoin Holdings Top 8,000 BTC

American Bitcoin added roughly 981 BTC to its balance sheet during the quarter. Total reserves increased 14% from about 7,021 BTC to approximately 8,002 BTC at quarter-end. The company's satoshis per outstanding share metric rose 11% to about 10,989. The practice of retaining mined Bitcoin as a treasury asset rather than liquidating it at market prices has become a common strategy among publicly traded mining firms seeking to offer shareholders indirect exposure to Bitcoin price appreciation.

About 3,090 BTC remained pledged as collateral under equipment financing agreements with Bitmain. Those encumbered holdings represented nearly 39% of total Bitcoin reserves at quarter-end. American Bitcoin said it maintains redemption options and continues to hold economic exposure to the pledged assets.

Eric Trump is a co-founder of American Bitcoin, and Hut 8 retains majority ownership. The operation controlled 89,242 mining machines with 28.1 EH/s of total capacity, including 58,999 active units delivering 25 EH/s. The company also activated 11,298 next-generation machines at Hut 8's Drumheller facility in April.