American Bitcoin (ABTC), Bitcoin $BTC$67,953.30 A mining company backed by President Donald Trump’s family announced a loss of $59 million in the fourth quarter as the value of its holdings eroded as the price of the largest cryptocurrency plummeted.
The company, which went public in September less than a month before the largest cryptocurrency hit an all-time high, has been pursuing a dual strategy of mining and buying, with about a third of its funds coming from $BTC It comes from mining operations. The remainder will come from open market purchases and strategic transactions, with the majority of the funding coming from stock sales.
The company, which is 20% owned by Eric Trump and Donald Trump Jr., generated $150.5 million through an initial public offering during the quarter. This capital allowed the company to increase its per-share Bitcoin exposure by nearly 50%. Currently holding over 6,000 items $BTCit was written.
During the quarter, the company mined Bitcoin at a gross profit margin of 53%, suggesting that production costs remained well below spot prices even as the cryptocurrency’s price fell. Revenue increased 22% from the third quarter.
New guidelines from the Financial Accounting Standards Board (FASB) require companies to mark their virtual currency holdings as marketable. During this period, the price of Bitcoin fell by 23%, forcing US Bitcoin to report a non-cash loss of $227 million.
The company’s shares rose 3.8% to $1.09 in pre-market trading. The stock is down nearly 90% from last year’s high of about $9.
Hut8 (HUT), the company’s major shareholder, reported fourth-quarter results on Wednesday, and its stock price fell 7% even as rivals like MARA Holdings (MARA) and Riot Platforms (RIOT) made inroads.
Hut 8 said it ended the year with a development pipeline of 8,500MW. We also secured a new $200 million revolving credit facility with Two Prime and expanded our Coinbase facility to $200 million, bringing our total credit facility to $400 million.
