American Bitcoin Corp. (NASDAQ: ABTC) shares rose more than 5% on Wednesday after the company disclosed a $2.5 million settlement tied to a Paycheck Protection Program (PPP) loan dispute inherited through its merger with Gryphon Digital Mining. Investors also reacted to the company’s latest quarterly results, which showed record Bitcoin production and further growth in its treasury despite another loss, underscoring the split many miners face between operational expansion and earnings pressure from digital asset volatility.

ABTC traded at $6.18 at the time of reporting, up 5.64% from the previous close of $5.85. The stock extended recent gains as traders focused on operating progress and the company’s expanding Bitcoin holdings, which management continues to present as the central measure of performance.

American Bitcoin settles PPP loan investigation

In its quarterly filing, American Bitcoin said it agreed to pay $2.5 million to resolve allegations related to a $2.2 million PPP loan originally received by Gryphon Digital Mining. The matter dates back to the period when Gryphon operated as a software provider serving the cannabis industry.

The Small Business Administration approved the loan and later forgave it in 2021. In 2024, however, the agency reversed that decision after determining the company may not have qualified for the program. The Justice Department later launched a civil investigation into the issue.

American Bitcoin inherited the liability after completing its merger with Gryphon last year. The settlement ends the dispute without prolonged litigation and removes an outstanding legal issue that had appeared in prior company filings.

The settlement amount is larger than the original loan value, reflecting additional costs related to resolving the case. American Bitcoin included the agreement in its latest quarterly report alongside broader operating results.

Q2 revenue rises, but losses remain heavy

American Bitcoin also reported mixed second-quarter results. Revenue increased 8% quarter over quarter to $67 million, supported by stronger mining operations. The company still posted a net loss of $57.2 million after recording digital asset losses during the quarter.

Digital asset losses totaled $71.2 million, while adjusted EBITDA remained negative at $45 million. Even so, the company delivered its strongest Bitcoin production to date.

American Bitcoin mined 932 BTC during the quarter and increased its corporate treasury to more than 8,000 Bitcoin. The company also expanded its mining fleet to 89,242 machines, bringing total computing capacity to 28.1 EH/s.

Mining revenue per Bitcoin fell about 5% to roughly $71,900 as Bitcoin prices softened during the reporting period. At the same time, the average mining cost remained relatively stable at about $36,500 per Bitcoin, highlighting the operating leverage miners still see when production scales faster than revenue per coin.

Following the earnings release, the company also announced a leadership change. Interim Chief Financial Officer Matthew Prusak stepped down to join AI infrastructure company Giga Energy. Paul Sacks, formerly the company’s head of derivatives, was named interim CFO while keeping his existing responsibilities.

Executives reiterate Bitcoin accumulation strategy

During the earnings call, executives said the company remains focused on increasing Bitcoin holdings rather than using the treasury for other corporate purposes.

Chief Executive Officer Mike Ho said the company’s priority is to raise “Bitcoin per share” rather than monetize its existing holdings. He said Bitcoin holdings rose by about 14% during the quarter while shares outstanding increased by roughly 3%, which increased Bitcoin ownership per share.

Co-founder and Chief Strategy Officer Eric Trump also restated the company’s long-term view on digital assets.

“We are absolute Bitcoin maximalists. I mean, Bitcoin is obviously still leading the way. Cryptocurrency in general, but Bitcoin has such an incredible future,” he said.

Wall Street sentiment has remained constructive after the report. One analyst covering American Bitcoin has a 12-month price target of $15.00, implying roughly 144% upside from current levels, according to TipRanks. The estimate is based on a single analyst’s coverage and reflects expectations for continued growth in Bitcoin production and treasury holdings.