American Bitcoin CEO sidesteps BTC sale as Q2 loss hits $57.2M

American Bitcoin Corp. lost $57.2 million in Q2 while CEO Mike Ho sidestepped selling Bitcoin for buybacks, a Strategy Inc. approach.

"We are absolute Bitcoin maximalists," Eric Trump, co-founder and chief strategy officer at American Bitcoin, said. "Bitcoin is obviously still leading the way."

American Bitcoin reported Q2 revenue of $67.015 million, missing the $73 million consensus, with a loss per share of $0.80 versus the $0.15 estimate. The company's Bitcoin holdings grew 14 percent to 8,300 BTC worth $527 million, making it the 16th-largest corporate BTC holder. Mining production hit a record 932 BTC, up from 817 in Q1, driven by the full energization of its Drumheller site in April.

The stock has plunged 95 percent since its Nasdaq debut in September. ABTC shares closed 5.98 percent higher at $5.85 on Monday but fell 2.22 percent in after-hours trading. The company executed a 1-for-15 reverse stock split in July to avoid delisting after shares fell below Nasdaq's $1.00 minimum bid requirement.

During the earnings call, Ho was asked whether the company would contemplate selling Bitcoin to improve business economics, similar to the approach taken by Michael Saylor's Strategy Inc. (NASDAQ: MSTR). Strategy recently sold 1,638 Bitcoins to lift its dollar reserve to $4 billion. Ho did not directly answer, instead emphasizing the company's "North Star" of enhancing Bitcoin per share.

Ho highlighted that American Bitcoin's holdings grew 14 percent in Q2 while outstanding shares rose about 3 percent, leading to an approximately 11 percent increase in Bitcoin ownership per share. The company's strategy combines large-scale mining operations with at-the-market Bitcoin purchases to accelerate growth of its strategic reserve.

The company reported an operating loss of $74.1 million, with the largest component being a $71.1 million loss on digital assets. Adjusted EBITDA was negative $45.0 million. Gross profit reached approximately $33 million, up from $32.5 million in Q1, maintaining a gross margin of around 49 percent despite Bitcoin price compression.

Bitcoin fell about 11 percent during the quarter, contributing to the digital asset losses. At the time of writing, BTC was trading at $63,746, up 1.63 percent in the last 24 hours.

Peer Nakamoto (NASDAQ: NAKA) also executed a 1-for-40 reverse stock split in May after its shares collapsed to $0.15, reducing outstanding shares from 696 million to about 17.4 million.

The question of whether ABTC will eventually sell Bitcoin to support its economics carries weight beyond the company itself. As the 16th-largest corporate BTC holder with a Trump-linked leadership team, any shift in treasury policy could influence how other mining firms approach their reserves. For now, Ho's emphasis on per-share Bitcoin growth suggests the company remains committed to accumulation, even as its stock trades near $5.85 after a 95 percent decline since listing.

Benzinga's Edge Stock Rankings show ABTC trending weakly across short-, medium- and long-term horizons.

This article is for informational purposes only and does not constitute investment advice.