American Bitcoin NASDAQ: ABTC reported first-quarter fiscal 2026 results highlighting higher Bitcoin production, lower unit mining costs, and continued growth in its Bitcoin reserve, even as Bitcoin prices declined during the quarter and created significant non-cash accounting losses under fair value rules.
Production rose as fleet expanded and Drumheller came online
Chief Strategy Officer Eric Trump said the company ended the quarter with a strategic Bitcoin reserve of 7,021 Bitcoin, up from 5,401 at year-end 2025, and said the company “did not sell a single coin” during the period. Trump also pointed to growth in owned mining infrastructure, saying American Bitcoin now has “nearly 90,000 miners” and “approximately 28.1 exahash per second of owned capacity,” up from roughly 78,000 miners at year-end.
In operational remarks, a company representative (identified as Mike on the call) said American Bitcoin mined 817 Bitcoin in Q1, up from 783 in Q4 2025. He added that March production reached a monthly record of 286 Bitcoin. The company’s owned capacity at quarter-end was about 25 exahash per second, and following the full energization of the Drumheller site on April 22, nameplate capacity increased to about 28.1 exahash per second.
Mike said the company completed the acquisition of about 11,298 next-generation miners during the quarter, adding approximately 3.05 exahash per second at about 13.5 joules per terahash. Those units were deployed to Hut 8’s Drumheller site in Alberta. He characterized the move from purchase agreement to fully energized site in under two months as enabled by American Bitcoin’s partnership with Hut 8.
Bitcoin price decline pressured revenue, but mining costs improved
President and Interim Chief Financial Officer Matt Prusak reported Q1 2026 total revenue of $62.1 million, down from $78.3 million in Q4 2025. He attributed the decline to lower Bitcoin prices during the quarter, noting Bitcoin fell from about $87,500 to about $68,200 over the three months ended March 31, 2026. “This is a pure price effect, not an operational one,” Prusak said, adding that production increased quarter-over-quarter and that revenue would have risen sequentially if Q4 price levels had held.
Prusak said cost of mining, excluding depreciation and amortization, was $29.6 million, compared with about $36.7 million in Q4 2025. He reported a cost to mine of approximately $36,200 per Bitcoin, a 23% sequential improvement from about $46,900 in Q4, driven by higher production spread across a stable fixed cost base and “continued energy pricing discipline.” Mining gross profit was about $32.5 million, and gross margin was about 52%, compared with 53% in Q4. Prusak said the lower unit cost “effectively absorbed” the quarter’s 22% Bitcoin price decline, helping keep gross margin above 50%.
- Bitcoin mined: 817 in Q1 2026 vs. 783 in Q4 2025
- Total revenue: $62.1 million vs. $78.3 million
- Cost to mine per Bitcoin: ~$36,200 vs. ~$46,900
- Mining gross margin: ~52% vs. 53%
GAAP loss driven by non-cash digital asset revaluation
Prusak said the quarter’s “headline GAAP loss” was primarily driven by non-cash mark-to-market losses on Bitcoin holdings that were not sold, due to fair value accounting rules requiring quarterly revaluation through the income statement. He reported a $117.2 million loss on digital assets in Q1 2026, compared with a $112.2 million loss in Q4 2025.
He added that the digital asset loss was partially offset by a $37.3 million gain on derivatives related to a miner purchase agreement, which he said was consistent with a $37.5 million gain recorded in Q4.
Treasury growth and “satoshis per share” focus
Management repeatedly emphasized a per-share Bitcoin ownership metric it calls “satoshis per share” (SPS). Mike said the strategic reserve increased by about 1,620 Bitcoin during the quarter, reflecting 817 Bitcoin from mining and about 803 Bitcoin from treasury purchases funded through the company’s at-the-market (ATM) equity program. He said satoshis per share rose from 554 at year-end to about 663 at quarter end, an increase of roughly 20% in one quarter, while share count grew about 9%.
Trump said satoshis per share was “over 690” as of the call date and argued that “every share of American Bitcoin owns substantially more Bitcoin today than it did three months ago.”
On the ATM program, Prusak said cumulative proceeds through quarter-end totaled approximately $351.5 million, representing 16.7% of the company’s $2.1 billion shelf capacity. During Q1, American Bitcoin issued about 84 million Class A shares for about $111 million in gross proceeds, following 65.5 million shares issued in 2025 for $240.5 million.
Industry backdrop: difficulty decline, AI shift, and M&A framework
On the call’s lone analyst Q&A, BTIG’s Benjamin Sommers asked about the decline in network difficulty and whether it reflected miners shifting to AI or cyclical pressures from lower Bitcoin prices. Mike said difficulty is tied to the amount of mining capacity online and pointed to “hundreds of megawatts” shifting toward AI among leading U.S. public miners, which he said correlates with “tens of exahash” of compute coming offline. He said that pivot contributed to network difficulty dropping about 6% during the quarter, and earlier in his prepared remarks he noted a roughly 10% quarter-over-quarter decline.
Sommers also asked about American Bitcoin’s approach to M&A amid the industry’s shift toward AI and high-performance computing. Trump said the company continues to look at opportunities, but its philosophy is centered on whether a transaction improves satoshis per share. “Is M&A, is a decision, is capital allocation going to improve that metric?” Trump said, adding that the company is exploring “a number of opportunities” and will provide updates as they progress.
In closing remarks, Trump reiterated the company’s focus on accumulating Bitcoin at the lowest cost, citing Q1 gross margin of 52.4% and cost to mine Bitcoin of roughly $36,000, and said management is focused on efficiency and “every single penny” as it seeks to grow its Bitcoin reserve and per-share exposure.
About American Bitcoin NASDAQ: ABTC
Gryphon Digital Mining is an innovative venture in the bitcoin space. Gryphon Digital Mining, formerly known as Akerna Corp., is based in DENVER.
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