How is the company positioning itself regarding potential progress on the Clarity Act?

Michael Ho stated that regulations like the Clarity Act are beyond the company's control. Their focus remains on operational metrics, such as increasing Bitcoin production and maintaining gross profitability, which they demonstrated this quarter. They monitor regulatory progress and hope for its passage but prioritize controllable operational aspects. “The Clarity Act and regulations go beyond our scope and our purview. It's out of our control, and we are monitoring the progress, and we hope it gets passed soon. It helps Bitcoin, and it helps every participant. But in the meantime, we're only able to focus on what we can control, and that's our operations.”

What is the company's view on the network hash rate, how other miners are responding to the current price environment, and expectations for miner behavior leading up to the halving?

Michael Ho observed a stable or decreasing overall network hash rate. He noted that approximately one-third of the Bitcoin network, driven by U.S. public companies, has pivoted existing mining sites to AI data centers with long-term contracts. This shift means those machines are permanently coming offline, allowing American Bitcoin to increase its production for the same network participation. “What the numbers show is about 1/3 of the Bitcoin network was primarily driven by U.S. public companies, some of our peers. Our peers have in the recent quarters have all pivoted existing Bitcoin mining sites and have signed or in the process of signing AI data center sites.”

Given the difficulty in sourcing additional sites, what does the pipeline for unique Bitcoin mining sites look like, especially those not suitable for AI, and what are the opportunities?

Michael Ho explained that Bitcoin mining is location-agnostic and has lower latency requirements compared to AI data centers. While AI data centers also seek new markets, they require fiber infrastructure, which takes time to build in rural areas. American Bitcoin targets these areas where power is available but fiber is not, allowing them to tap into markets less competitive for AI offtake. “With Bitcoin mining, we're able to install a Starlink. We're able to mine Bitcoin with very low bandwidth. Even if the power is available for AI offtake, they still require fiber, dark fiber in most cases. And fiber takes time to build, to bring to these more rural areas. That is a market that we're tapping and we continue to monitor for our new expansion sites.”

ABTC

American Bitcoin (ABTC) Q2 FY26 earnings call: the analyst Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Aug 3, 2026

Source: earnings call transcript

Executive summary

American Bitcoin Q2 FY26 — Record Production and Strategic Reserve Growth Amidst Bitcoin Price Decline

American Bitcoin delivered record Bitcoin production and revenue growth in Q2 FY26, driven by operational efficiency and new capacity, despite significant Bitcoin price volatility. The company continued to grow its strategic Bitcoin reserve and Bitcoin ownership per share, emphasizing a long-term, disciplined approach to value creation across market cycles. Management highlighted the increasing competition for power from AI data centers but remains focused on opportunistic growth and unit economics.

Highlights

Record quarterly Bitcoin production of 932 BTC, an increase of approximately 14% from Q1.
Revenue grew approximately 8% to $67 million despite a 12% decline in Bitcoin price.
Strategic Bitcoin reserve grew by nearly 1,000 BTC (14%) to 8,002 BTC by quarter-end.
Satoshis per share increased approximately 11% to 11,000 in a single quarter.
Gross margin maintained at approximately 49% despite significant Bitcoin price compression.

Concerns

Bitcoin price declined approximately 12% period end over period end from Q1, including a peak-to-trough decline of approximately 28%.
Gross margin compressed slightly from 52% in Q1 to 49% in Q2, primarily due to the Bitcoin price decline.
Intensified competition for power and site availability from other large-scale use cases, particularly AI data centers.
President and Interim CFO, Matt Prusak, is departing for a new opportunity.

Risks & headwinds

Bitcoin Price Volatility Q2 FY26

Bitcoin price declined approximately 12% period end over period end from Q1, with a peak-to-trough decline of approximately 28% from May 10 to June 26. This compressed gross margins from 52% to 49%.

Mitigation:Focus on operational efficiency, maintaining low cost to mine ($36,500 per Bitcoin), and growing production to offset price declines. Optimizing for economic output rather than simply maximizing uptime.

Intensified Power Competition Ongoing

Demand from AI data centers has increased competition for power, making site sourcing more challenging and competitive. Approximately 1/3 of the Bitcoin network (U.S. public companies) has pivoted sites to AI data centers.

Mitigation:Focus on finding competitive sites in rural areas where AI data centers face latency and fiber infrastructure constraints, leveraging Bitcoin mining's lower bandwidth requirements.

Upcoming Bitcoin Halving Future

The next halving will reduce block subsidy again.

Mitigation:Implied by focus on operational excellence, bottom-line economics, and growing Bitcoin ownership per share to endure market cycles.

Summer Conditions Impact on Production Next quarter (Q3 FY26)

Summer conditions can affect production and power economics, particularly in Texas.

Mitigation:Optimizing for economic output rather than simply maximizing uptime during these periods.

What to watch in Q3 FY26

Site availability and expansion

Coming quarters

Current Intensified competition for power from AI data centers.

Target Identification and securing of new competitive sites.

Why it matters

Continued expansion of mining capacity is crucial for production growth and increasing Bitcoin per share.

We believe that we can still continue to find competitive sites, and we'll update in the coming quarters.

Find out whether ABTC delivers this. Inve re-checks your case every morning.

Q&A highlights

How does the company plan for future self-mining expansion over the next 12-24 months, especially given the Drumheller facility is now fully operational?

Michael Ho acknowledged intensified competition for power from AI data centers, which has made site sourcing more competitive. He noted that while 1,000 gigawatts of total generation exist in the U.S. with 200 gigawatts of excess power, AI data centers are bidding up prices. However, American Bitcoin continues to seek competitive sites, particularly leveraging opportunities in areas where AI data centers face latency and fiber infrastructure constraints.

“Since the ChatGPT [ moments ], we've seen a ferry of new developers coming in to source the same power. Electrons are fungible. It's the same power that is being used for AI data centers, and the market has become increasingly competitive.”

asked by Gregory Lewis · answered by Michael Ho

2 min read 7 chapters

Detailed narrative

Strategic Vision and Market Context

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 Production and Revenue Drivers

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.

Operational Efficiency and Cost Management

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.

Strategic Bitcoin Reserve Growth

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.

Capital Allocation and ATM Program

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%.

Competitive Landscape and Site Sourcing

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.

Executive Transition

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.