American Bitcoin reported a first quarter loss of nearly $82 million despite achieving record Bitcoin production and significantly lowering its mining costs.
Key Takeaways
- American Bitcoin posted an $81.7 million net loss in Q1 2026 while revenue missed analyst estimates.
- The company mined a record 817 Bitcoin during the quarter and reduced mining costs by 23%.
- American Bitcoin expanded its mining fleet with more than 11,000 new ASIC miners.
- Shares slipped after earnings as the broader Bitcoin mining industry continues facing pressure from lower BTC prices.
What Happened?
American Bitcoin, the crypto mining company backed by Eric Trump and Donald Trump Jr., reported weaker than expected first quarter earnings as falling Bitcoin prices weighed on profitability across the mining sector.
The company posted revenue of $62.1 million for the quarter ended March 31, missing analyst expectations by roughly 17%. American Bitcoin also recorded a net loss of $81.7 million, although the loss narrowed compared with the $100.6 million loss reported during the same period last year.
— American Bitcoin (@ABTC) May 6, 2026
Revenue Falls as Bitcoin Prices Weaken
American Bitcoin’s quarterly revenue declined from $78.3 million in the fourth quarter of 2025. The drop reflected weaker Bitcoin market prices during the period, with average revenue per Bitcoin mined falling to about $76,000, compared with nearly $100,000 in the previous quarter.
Bitcoin prices also declined sharply during the first quarter after reaching highs near $97,000 earlier in the year. The cryptocurrency recently traded near $81,000, creating additional pressure on mining companies already dealing with tighter margins and rising competition.
According to the company filing, much of the quarterly loss came from mark to market accounting adjustments tied to the changing value of its Bitcoin holdings rather than operational weakness in its mining business.
Mining Costs Improve Significantly
Despite the quarterly loss, American Bitcoin managed to sharply improve its operational efficiency.
The company said its cost to mine one Bitcoin dropped to approximately $36,200 during the first quarter. That represented a 23% improvement from the previous quarter’s mining cost of around $46,900 per Bitcoin.
Management credited the improvement to:
- Higher production spread across a stable fixed cost base.
- Better energy pricing discipline.
- Increased mining capacity from newly deployed hardware.
The company’s mining costs now sit well below the estimated industry average of roughly $80,000 per Bitcoin reported for many publicly traded miners in late 2025.
Record Bitcoin Production and Fleet Expansion
American Bitcoin mined a record 817 Bitcoin during the quarter, surpassing the 783 Bitcoin mined during the previous quarter.
The company also purchased 803 Bitcoin through treasury acquisitions, bringing its total Bitcoin reserves to approximately 7,021 BTC by the end of March. That marked a roughly 30% increase in holdings over three months and positioned the company among the world’s largest publicly traded Bitcoin holders.
To support growth, American Bitcoin expanded its mining infrastructure significantly during the quarter.
The company energized 11,298 new ASIC mining machines, adding roughly 3.05 exahashes per second of computing power to its operations. Total fleet capacity reached approximately 28.1 EH/s, with nearly 89,000 miners deployed across its facilities.
Many of the new miners were installed at the company’s Drumheller facility in Alberta, which became operational near the end of March.
American Bitcoin CEO Mike Ho said the company plans to continue expanding carefully while maintaining financial flexibility. Ho said:
Bitcoin Mining Sector Faces Broader Challenges
American Bitcoin’s earnings arrived during a difficult period for the wider crypto mining industry.
Several public miners have recently shifted attention toward artificial intelligence and high performance computing infrastructure as mining profitability becomes increasingly volatile. Industry firms have also reduced Bitcoin reserves to fund expansion into alternative revenue streams.
On the same day, mining company Hut 8 reported a quarterly net loss exceeding $253 million, largely due to declines in the value of its Bitcoin holdings.
Shares of American Bitcoin fell slightly in after hours trading following the earnings release. The stock has declined significantly from its listing highs reached after the company debuted on Nasdaq following its merger with Gryphon Digital Mining.
CoinLaw’s Takeaway
In my experience, this quarter shows how difficult the Bitcoin mining business has become even for companies with aggressive expansion plans and strong political connections. What stands out most is not the loss itself, but the fact that American Bitcoin managed to reduce mining costs while much of the industry continues struggling with profitability. I found the company’s efficiency improvements far more important than the revenue miss because lower mining costs could become a major advantage if Bitcoin prices recover later this year.
