American Bitcoin (ABTC), the bitcoin $BTC$67,953.30 mining company backed by the family of President Donald Trump, said it lost $59 million in the fourth quarter as the plummeting price of the largest cryptocurrency eroded the value of its holdings.
The company, which went public in September, less than a month before the largest cryptocurrency hit a record high, is pursuing a dual strategy of mining and purchases, with roughly one-third of its $BTC coming from mining operations. The rest comes from open-market purchases and strategic transactions, funded in large part by selling stock.
The company, which is 20% owned by Eric Trump and Donald Trump Jr, generated $150.5 million through an at-the-market stock offering during the quarter. The capital allowed it to boost its per-share bitcoin exposure by nearly 50%. It now holds more than 6,000 $BTC, it said.
During the quarter, it mined bitcoin at a 53% gross margin, suggesting production costs were significantly below spot prices even as the price of the cryptocurrency fell. Revenue rose 22% from the third quarter.
New Financial Accounting Standards Board (FASB) guidelines require firms to mark crypto holdings to market. Bitcoin’s price fell 23% during the period, forcing American Bitcoin to report a $227 million non-cash loss.
Shares in the company are up 3.8% in pre-market trading at $1.09. They are down nearly 90% from a high of around $9 seen last year.
The company’s majority owner, Hut 8 (HUT), reported fourth-quarter earnings on Wednesday, sending the shares down 7% even as rivals such as MARA Holdings (MARA) and Riot Platforms (RIOT) advance.
Hut 8 said it ended the year with an 8,500 MW development pipeline. It also secured a new $200 million revolving credit facility with Two Prime and expanded its Coinbase facility to $200 million, bringing total credit capacity to $400 million.