A $71 million fair-value writedown on the company's own bitcoin holdings offset the 8 per cent rise in mining revenue. Shares closed down 6.4 per cent on Friday ahead of the release.
American Bitcoin Corp reported a $57.2 million net loss for the second quarter on Monday morning, narrower than the $81.8 million loss it posted in the first three months of the year but a sharp reversal from the $3.4 million profit it recorded a year earlier. Mining revenue climbed to $67 million, up roughly 8 per cent quarter on quarter, and the Trump-family-linked miner produced a record 932 bitcoin over the period. What dragged the bottom line down was the value of the coins already on the balance sheet.
The company took a $71.2 million loss on digital assets in the quarter, down from $117.2 million in the first quarter but still enough to swallow the operating gains. That figure reflects fair-value marks on the roughly 8,002 bitcoin American Bitcoin held on 30 June, not a realised trade. Under the US accounting revisions adopted in 2024, treasury coins are re-priced every quarter and the difference flows straight through net income. As bitcoin fell about 12 per cent through the period, the reserve was written down; if the price recovers, the mark reverses. Strategy posted an $8.2 billion Q2 loss on the same mechanic, but the writedown lands differently on a company whose entire equity story is treasury accumulation.
Eric Trump and Donald Trump Jr together own about 20 per cent of American Bitcoin, which listed on the Nasdaq last September and has spent most of 2026 trying to defend an equity price that has fallen roughly 90 per cent from its post-IPO peak. Shares closed at $5.52 on Friday, down 6.4 per cent on the session, and edged up less than half a per cent in Monday pre-market trading. The earnings call heard a company describing operational strength while sitting on a marked-down balance sheet.
There is real production to point to. The 932-coin quarter is a record, and revenue per bitcoin mined came in around $71,900, down about 5 per cent from Q1's roughly $76,000 but well ahead of the fall in bitcoin's spot price, which shielded gross margin near the 50 per cent line. The fleet exited the period at about 25.0 exahash operational out of roughly 28.1 exahash installed, with average efficiency around 14.1 joules per terahash. That is respectable but not category-leading; the newest Bitmain and MicroBT models are targeting the 12 J/TH range, and the delta shows up in every unit of power the company buys.
Of those 8,002 bitcoin on the balance sheet, 3,090 are already pledged to Bitmain under equipment purchase agreements. In other words, more than a third of the treasury is earmarked to pay for rigs the company has committed to buy. If bitcoin trades sideways or lower through the delivery window, American Bitcoin does not have the option to sell those coins into a rally; they belong to Bitmain on delivery. The strategy of stacking coins and running the miners in parallel only works cleanly when the miners are paid for.
The Bitmain relationship cuts both ways. American Bitcoin has locked in delivery of hardware at scale in a market where the newest ASICs remain supply-constrained, but the coin-denominated pricing means every dollar move in bitcoin changes the effective cost of that hardware. In a rally the pledged coins are the cheapest capital source available; in a drawdown they are dead weight the company cannot redeploy.
Q1's $117.2 million digital-asset writedown was the anomaly; the $71.2 million mark in Q2 is closer to steady-state at these prices. Management's improvement story is real to the extent that operating losses are shrinking and revenue is scaling. It is also selective. The year-on-year comparison, a $3.4 million profit turning into a $57.2 million loss, is what the market has been trading on since the stock listed.
American Bitcoin sits in an odd corner of the treasury-company universe. It is not a pure miner, because a substantial share of its balance sheet is bitcoin held for accumulation rather than working capital. It is not a pure treasury, because it operates 28 exahash of hardware. The hybrid model produces two loss engines in a down market: falling revenue per coin, and falling mark-to-market on the coins already held. Only one of those is under management's control. Strategy has the same structural exposure to bitcoin marks but the sheer scale of its balance sheet lets it treat the equity as a leveraged bitcoin proxy. American Bitcoin is trying to hold that position on a market capitalisation under $1 billion.
Hut 8 reports on Tuesday. The read-across for post-halving margins will be watched closely because Hut 8 has more aggressively re-pointed capacity toward AI and high-performance computing than most of the pure miners; IREN raised its AI cloud target to $4 billion last week after selling out its Horizon 1 build. American Bitcoin has floated similar pivots but has yet to commit hardware. On the current numbers, the company's second-quarter loss is smaller than its first, but its coins are still worth less than they cost.
