American Bitcoin Corporation (ABTC), a Miami-based Bitcoin mining firm linked to former President Donald Trump’s family, reported a net loss of $59 million in the fourth quarter due to a decline in Bitcoin prices, which reduced the value of its digital assets. The company’s stock, traded on Nasdaq under the ticker ABTC, generated $78.3 million in revenue during the last three months of the year, up from $64.2 million the previous year but slightly below analyst expectations. For the full year, ABTC earned $185.2 million in total revenue. Bitcoin prices fell approximately 23% in Q4, exerting financial pressure on companies holding significant Bitcoin reserves. Under new accounting standards, firms must value digital assets at market prices each reporting period, resulting in ABTC recording a non-cash impairment loss of $227 million. At year-end, the company held 5,401 Bitcoins, now exceeding 6,000 coins. According to co-founder Eric Trump, about one-third of these assets were mined internally, with the remainder acquired through market purchases and strategic transactions. The Trump family holds a 20% stake in ABTC, with Eric Trump and Donald Trump Jr. as key shareholders. Since its public debut in September last year, coinciding with Bitcoin’s historic peak, ABTC’s share price has declined by roughly 90%. During Q4, the company raised $150.5 million through stock sales, which was invested in additional Bitcoin acquisitions, increasing Bitcoin exposure per share by nearly 50%. ABTC operates industrial-scale mining facilities, primarily using infrastructure owned by Hut 8, and achieved a 53% gross margin from mining activities despite challenging market conditions. Despite the losses, company officials plan to expand mining capacity and accumulate more Bitcoin reserves. Other major miners are adjusting strategies in response to market trends, including investments in artificial intelligence infrastructure and liquidating Bitcoin holdings to strengthen cash positions. Hut 8, the majority owner of ABTC, recently reported improved financial health and secured new funding to support its growth initiatives.
Source: bitcoinmagazine
