Key Takeaways
American Bitcoin (NASDAQ: ABTC) reported first-quarter revenue of $62.1 million, a 21% decline from the prior quarter, as a significant drop in Bitcoin's price offset record mining production.
"The price drop drove significant non-cash headwinds through our GAAP financials," CEO Mike Ho said, noting the underlying business remained profitable absent the mark-to-market adjustments required by accounting rules.
The company missed revenue estimates by 17 percent and posted an adjusted loss of $0.08 per share, versus consensus expectations of a $0.01 profit. Despite the revenue miss, American Bitcoin mined a record 817 BTC and lowered its cost to mine by 23 percent to approximately $36,200 per coin. The company's Bitcoin reserve grew by 1,620 coins in the quarter to 7,021 BTC, funded by mining and treasury purchases.
While the headline numbers were impacted by a $117.2 million non-cash loss on its digital assets, management focused on per-share metrics, highlighting a 20% quarterly increase in its "satoshis per share" to 663. The company's strategy of accumulating Bitcoin, funded in part by its at-the-market equity program, hinges on its ability to maintain low mining costs and for Bitcoin's price to recover.
American Bitcoin expanded its owned fleet to nearly 90,000 miners with 28.1 EH/s of capacity by the end of the quarter. A key development was the acquisition and deployment of 11,298 new-generation miners from Bitmain, which were energized at Hut 8's Drumheller site in Alberta. The company highlighted the speed of the deployment, which added approximately 3.05 EH/s of efficient capacity in under two months.
President Matthew Prusak attributed the 23% reduction in the cost to mine a Bitcoin to higher production spread across a stable fixed cost base and "continued energy pricing discipline." This cost improvement helped keep the mining gross margin resilient at 52.4%, absorbing much of the impact from the 22% decline in Bitcoin's price during the quarter. The company's focus on per-share Bitcoin ownership was a recurring theme, with executives stating that "every share of American Bitcoin owns substantially more Bitcoin today than it did three months ago."
This article is for informational purposes only and does not constitute investment advice.
