American Bitcoin Corp., the Nasdaq-listed miner co-founded by Eric Trump and Donald Trump Jr., mined a record 932 BTC in the second quarter and narrowed its net loss to $57.2 million. Mining revenue rose 8% to $67 million even as Bitcoin's price fell around 12% during the quarter, and the company's Bitcoin treasury grew 14% to 8,002 BTC.
American Bitcoin Corp., majority owned by Hut 8, mined a record 932 BTC in the second quarter, lifting mining revenue 8% to $67 million from $62.1 million. The company's net loss narrowed to $57.2 million from $81.8 million in the first quarter, even though it stayed in the red.
The quarter's result still included a $71.2 million loss on digital assets, which fell from $117.2 million in the first quarter but still exceeded the company's entire mining revenue for the period. As a result, adjusted EBITDA came in at a $45 million loss, an improvement from the $91.3 million loss posted three months earlier.
Bitcoin treasury grows 14% to 8,002 BTC
American Bitcoin's holdings rose 14%, from 7,021 BTC on March 31 to 8,002 BTC on June 30. However, about 3,090 BTC, or nearly 39% of that reserve, remains pledged under equipment purchase agreements with Bitmain. The company ranked as the 16th-largest Bitcoin treasury company tracked by data aggregator Bitcoin Treasuries at the time of writing.
American Bitcoin CEO Mike Ho said the company believes "long term compounding will outperform our cost of capital." Revenue per Bitcoin mined fell about 5% to $71,900 as Bitcoin prices weakened, while mining costs held near $36,500 per coin, compared with $36,200 in the previous quarter.
Reverse split precedes share price pressure
American Bitcoin completed a 1-for-15 reverse stock split last month to maintain its Nasdaq listing after shares fell below the exchange's minimum bid requirement. ABTC shares closed down 6.4% on Friday at $5.52 ahead of the earnings release and edged up less than 0.5% in premarket activity on Monday, according to Yahoo Finance.
Meanwhile, satoshis per share rose about 11% to approximately 10,989 as Bitcoin holdings grew faster than the share count. Three analysts covering the stock have issued "Buy" ratings, and Maxim Group has set the highest price target at $15, with a median target of $8.
Sources: Cointelegraph, crypto.news, CoinGape
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