As the cryptocurrency market continues to experience significant fluctuations, American Bitcoin, a company backed by the Trump family, has reported a substantial net loss of $82 million in the first quarter of 2026. This loss is particularly notable given that the company achieved a record BTC mining output of 817 BTC during the same period. According to documents filed with the SEC, American Bitcoin also purchased an additional 803 BTC, bringing its strategic reserve to 7,021 BTC by the end of March.
The company's mining revenues declined to $62.1 million, down from $78.3 million in the previous quarter, due to lower prices per Bitcoin mined. However, American Bitcoin was able to cut its cost to mine by 23% to $36,200 per Bitcoin, resulting in a gross margin of over 50%. The company's preferred measure of value creation, Satoshis per share, rose by about 20% quarter-over-quarter to approximately 663. CEO Mike Ho emphasized that, excluding non-cash mark-to-market adjustments, the underlying business was profitable, and no Bitcoin was sold during the quarter.
Cost Improvements and Expansion
President Matthew Prusak highlighted the company's cost improvements as a key operational story, noting that American Bitcoin produced Bitcoin at a 52% gross margin despite a 22% decline in Bitcoin price. The company's ability to offset the price decline through cost reductions is a significant achievement. The production gains were partly the result of a hardware acquisition completed in early March 2026, which added approximately 3.05 EH/s of capacity to the company's mining operations.
American Bitcoin's total owned fleet now stands at around 89,242 miners, with a capacity of 28.1 EH/s. Although the company's operational fleet is slightly smaller, with 58,999 miners delivering active output, it remains a significant player in the BTC mining industry. The company's decision to maintain a strategic reserve of Bitcoin, rather than selling, may be a key factor in its long-term success. As the cryptocurrency market continues to evolve, American Bitcoin's ability to adapt and improve its operations will be crucial in achieving profitability.
