American Bitcoin Corp (ABTC) Earnings

Management highlights

- Company Growth & Scale Milestones - American Bitcoin launched March 31, 2025, went public on NASDAQ under ticker ABTC on September 3, 2025, and as of Q1 2026 end it holds over 7,300 Bitcoin, operates nearly 90,000 miners, and has 28.1 exahash per second of total owned mining capacity, making it one of the largest dedicated Bitcoin accumulation companies globally. - Satoshis per share (SPS) grew approximately 20% quarter-over-quarter from 554 at year-end 2025 to 663 at Q1 2026 end, and exceeded 690 by the time of the earnings call; SPS growth outpaced 9% share count growth from the ATM equity program, offsetting dilution concerns. - Operational Execution Highlights - The company delivered record quarterly Bitcoin production of 817 BTC in Q1 2026, representing 33% of all Bitcoin mined since the company's launch, with monthly production rising consistently from 256 BTC in January to 286 BTC in March (the highest monthly production on record). - The company acquired 11,298 next-generation miners adding 3.05 exahash per second of capacity with 13.5 joules per terahash efficiency, deployed at the Hut 8-partnered Drumheller site. Energization began March 31 (Q1 end) and reached full capacity on April 22, completing the process from purchase agreement to full operation in under 2 months. - Cost per mined Bitcoin fell 23% quarter-over-quarter to $36,200, from $46,900 in Q4 2025, driven by higher production across stable fixed costs and disciplined energy pricing. This 23% cost improvement fully absorbed the 22% QoQ decline in Bitcoin prices, keeping gross margins above 50%. - Strategic Positioning - Bitcoin institutional adoption is accelerating globally, with growing participation from major U.S. financial institutions (including BlackRock, JPMorgan Chase, Charles Schwab, Morgan Stanley) and increasing sovereign reserve adoption discussions. Management expects American Bitcoin to become the category leader in the dedicated Bitcoin accumulation space. - The competitive landscape for Bitcoin mining is thinning: network difficulty declined ~10% QoQ as miners reallocate infrastructure and chip supply to AI workloads, a shift that is durable because redeployed infrastructure does not return quickly to mining. American Bitcoin is doubling down on Bitcoin rather than pivoting to AI, and expects focused, large-scale remaining miners to capture disproportionate benefits. - The firm's asset-light model in partnership with Hut 8 provides structural advantages including operational leverage, infrastructure access, and competitive energy pricing, allowing the company to concentrate capital on expanding mining capacity and accumulating Bitcoin. - Financial Performance Overview - Q1 2026 total revenue was $62.1 million, down sequentially from $78.3 million in Q4 2025, driven entirely by a 22% QoQ decline in Bitcoin prices; holding prices constant at Q4 levels, Q1 revenue would have increased sequentially. General and administrative (G&A) expenses fell 6% QoQ to $6.9 million, equivalent to 11% of total revenue (the ratio increased due to lower revenue rather than higher costs). - The GAAP net loss for the quarter is driven by a noncash $117.2 million mark-to-market loss on the company's held Bitcoin holdings, required by fair value accounting rules; the company does not sell mined Bitcoin, so this is an accounting adjustment rather than an operational loss, partially offset by a $37.3 million gain on derivatives tied to miner purchase agreements. - The company's ATM equity program raised $111 million in gross proceeds in Q1 2026, bringing cumulative proceeds to $351.5 million, 16.7% of the company's $2.1 billion shelf capacity. Proceeds from the ATM program funded 803 Bitcoin of treasury purchases in Q1 2026.

Guidance

- Management reaffirmed its core long-term priorities and did not revise prior quantitative guidance, given the early stage of the company: - The primary strategic goal remains sustained accretion of Satoshis per share, through the dual accumulation model of mining Bitcoin at a structural cost discount supplemented by ATM-funded treasury purchases, designed to compound per-share Bitcoin ownership across market cycles. - The firm will continue fleet deployment and optimization: with Drumheller fully energized, the addition of high-efficiency 13.5 joules per terahash miners will continue improving the blended fleet efficiency, and management will evaluate ongoing fleet refresh opportunities across the portfolio. - Management expects G&A expenses as a percentage of revenue to continue compressing as the mining platform scales, after Q1 2026 G&A came in at $6.9 million ($2.3 million per month), a figure management views as very efficient relative to peer companies.

Segment performance

American Bitcoin operates two core business segments: Bitcoin Mining and Treasury Bitcoin Reserve. The Bitcoin Mining segment generated total revenue of $62.1 million in Q1 2026, which represented 100% of the firm's operating revenue for the quarter (treasury activity does not generate revenue, but drives long-term asset growth). Cost of mining (excluding depreciation and amortization) was $29.6 million, leading to a mining gross profit of $32.5 million and a 52% gross margin. This segment produced 817 Bitcoin in Q1 2026, a sequential increase from 783 Bitcoin in Q4 2025. The Treasury Bitcoin Reserve segment holds a growing stock of Bitcoin for long-term accumulation; it grew 30% quarter-over-quarter from 5,401 Bitcoin at the end of 2025 to 7,021 Bitcoin at the end of Q1 2026, with no revenue generated from this segment in the period.

Risks & headwinds

- Forward-looking statements are based on current expectations and assumptions, and actual results may differ materially due to identified risks and uncertainties, which are detailed in the company's SEC filings including the 2025 Form 10-K and recent Form 10-Q. - Bitcoin prices are highly volatile: a 22% QoQ decline in Bitcoin prices in Q1 2026 drove a sequential decline in revenue and a noncash mark-to-market loss under GAAP accounting rules, and future price declines would create similar headwinds. - Competition in Bitcoin mining could shift if difficulty reverses or more miners remain active, though management currently views the competitive landscape as thinning due to AI reallocation. - M&A activities carry execution risk and may not deliver the expected SPS accretion if not properly structured.

Analyst Q&A

• Q: What portion of the Q1 2026 network difficulty decline is attributable to public miners shifting capacity to AI, versus cyclical effects from weak Bitcoin prices? /

  A: Network difficulty directly correlates with the amount of online mining hash capacity. U.S. public miners account for roughly one-third of total global network hash rate, and management confirms that hundreds of megawatts of capacity from leading U.S. public miners have been shifted to AI workloads. This shift corresponds to tens of exahash of mining capacity being taken offline, and this infrastructure is not easily returned to Bitcoin mining, so this is the primary driver of the 6% quarterly difficulty reduction, not just cyclical price effects.

• Q: How is American Bitcoin evaluating M&A opportunities in the current market, where many miners are pivoting to AI? /

  A: All capital allocation decisions, including M&A, are guided by one core metric: whether the transaction will increase Satoshis per share for ABTC shareholders, adding better Bitcoin exposure. Management is currently exploring a number of M&A opportunities that would support growth of the Bitcoin ecosystem, aligned with the company's core accumulation strategy. The firm will provide updates to investors if and when these opportunities progress to finalized transactions.