American Bitcoin (NASDAQ:ABTC) Posts Quarterly Earnings Results

Key Points

• American Bitcoin reported quarterly EPS of $1.73, missing the $2.86 analyst consensus by $1.13; net margin was negative 71.75%.
• Mining performance weakened quarter over quarter: output fell to 891 BTC from 932, revenue declined about 5%, and gross margin dropped to 41% from 49%, partly due to higher seasonal energy costs.
• Reported net income of about $126 million included $197.3 million in non-cash gains from Bitcoin’s price appreciation. The company ended September with 8,427 BTC and said Bitcoin per share rose 5% during the quarter.

American Bitcoin (NASDAQ:ABTC - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $1.73 earnings per share for the quarter, missing analysts' consensus estimates of $2.86 by ($1.13), Zacks reports. American Bitcoin had a negative net margin of 71.75% and a negative return on equity of 29.89%.

Here are the key takeaways from American Bitcoin's conference call:

• Mining economics weakened quarter over quarter: American Bitcoin mined 891 BTC versus 932 in Q2, while revenue fell about 5% and gross margin declined to 41% from 49%. The company attributed higher costs per Bitcoin primarily to seasonal energy prices.
• Reported earnings were boosted by Bitcoin’s price appreciation: Net income was about $126 million, but results included $197.3 million in non-cash digital-asset gains; management cautioned that mark-to-market changes can drive significant swings in reported earnings.
• The Bitcoin reserve and Bitcoin per share grew: The company ended September with 8,427 BTC and reported a 5% quarterly increase in Satoshis Per Share. It said the reserve additions came from mining, with no ATM share issuance or open-market Bitcoin purchases during the quarter.
• Energy and capital decisions remain key constraints: The company sold about 465 BTC to cover operating costs and said fleet expansion depends on mining returns, equipment costs, and power-market conditions. Executives also noted that AI and data-center demand is competing for electricity and that some peers are shifting mining capacity toward those uses.

American Bitcoin Price Performance

Shares of American Bitcoin stock traded down $0.37 on Wednesday, reaching $6.24. 1,350,758 shares of the company were exchanged, compared to its average volume of 1,179,533. American Bitcoin has a 1-year low of $4.92 and a 1-year high of $80.35. The company has a market cap of $454.40 million, a P/E ratio of -2.05 and a beta of 4.09. The stock's 50 day moving average price is $8.27 and its 200-day moving average price is $12.48.

Insider Activity at American Bitcoin

In other American Bitcoin news, Director Justin Mateen bought 162,438 shares of the company's stock in a transaction that occurred on Thursday, August 6th. The shares were purchased at an average price of $6.19 per share, with a total value of $1,005,491.22. Following the completion of the acquisition, the director directly owned 492,297 shares of the company's stock, valued at $3,047,318.43. This represents a 49.24% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 2.57% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on ABTC shares. Weiss Ratings reaffirmed a "sell (d)" rating on shares of American Bitcoin in a report on Monday, September 21st. Wall Street Zen lowered shares of American Bitcoin from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. HC Wainwright assumed coverage on American Bitcoin in a research report on Monday, October 12th. They issued a "buy" rating and a $22.00 target price on the stock. BTIG Research assumed coverage on American Bitcoin in a research note on Wednesday, September 16th. They issued a "buy" rating and a $15.00 price target on the stock. Finally, Zacks Research upgraded shares of American Bitcoin to a "hold" rating in a report on Tuesday, October 13th. Four analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $28.25.

American Bitcoin Company Profile

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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