American Bitcoin Q2 FY26 earnings call ABTC

American Bitcoin operates with the conviction that Bitcoin is a growing capital asset, aiming to build an enduring business that creates value across market cycles. The company acknowledges structural headwinds like intensified power competition from AI data centers and Bitcoin price compression, alongside the upcoming halving event. Their strategy focuses on operational excellence and bottom-line economics to improve unit economics and grow the operating business.

Q2 FY26 saw record production of 932 Bitcoin, a 14% increase from Q1, primarily due to the Drumheller site being fully energized in April, adding roughly 3 exahash of next-generation capacity. Revenue reached $67 million, up 8% from $62.1 million in Q1, despite a 12% decline in Bitcoin price. This growth was attributed to higher production and a downward adjustment in network difficulty, rather than a favorable price environment.

The company maintained a gross margin of approximately 49% in Q2, down slightly from 52% in Q1, attributing the compression to Bitcoin price rather than cost structure deterioration. The cost to mine a Bitcoin remained stable at approximately $36,500, reflecting efficient infrastructure and competitive energy costs. Management emphasized optimizing for economic output over maximizing uptime, especially during summer conditions.

American Bitcoin's strategic reserve grew by nearly 1,000 Bitcoin to 8,002 Bitcoin by quarter-end, a 14% increase. This accumulation is driven by mine production and opportunistic market purchases (approximately $4 million this quarter), with no Bitcoin sold from the balance sheet. The reserve is managed as a long-duration strategic asset, with Satoshis per share growing 11% to 11,000 in Q2 and 170% since NASDAQ listing.

The company's ATM program is managed with discipline, evaluating share issuance against value received, deployment opportunities, liquidity needs, and the effect on Bitcoin ownership per share. They ended the quarter with approximately 82% of ATM capacity remaining, indicating a selective approach to issuance. The company's shares outstanding grew by about 3% this quarter, while Bitcoin holdings grew by 14%.

Management noted that about one-third of the Bitcoin network, primarily U.S. public companies, has pivoted existing mining sites to AI data centers, leading to a stable or decreasing overall network hash rate. This shift creates a more permanent environment where those machines are unlikely to return to Bitcoin mining. The company is actively seeking new sites, focusing on rural areas where power is available but fiber for AI data centers is not yet established, leveraging Bitcoin mining's lower latency requirements.

Matt Prusak, President and Interim CFO, is departing for a new opportunity in Austin, with Paul Sacks, Head of Derivatives, stepping in as Interim CFO. Matt will remain in his role through August 4 to support a smooth transition. The company acknowledged Matt's significant contributions since its inception, including his role in the company's launch and growth.