American Bitcoin (ABTC) Q3 2026 Earnings Call Transcript

DATE

Wednesday, Nov. 4, 2026

CALL PARTICIPANTS

• Chief Executive Officer - Mike Ho
• Co-Founder and Chief Strategy Officer - Eric F. Trump

TAKEAWAYS

• Revenue -- $63.4 million, representing a 5% decrease from $67.0 million in the second quarter due to lower Bitcoin production.
• Net Income -- $126.0 million, compared to a net loss of $57.2 million in the second quarter, driven by digital asset appreciation.
• Adjusted EBITDA -- $220.8 million, which included $197.3 million in non-cash gains on digital assets.
• Bitcoin Production -- 891 Bitcoin mined during the quarter, compared to 932 Bitcoin in the second quarter as the company managed seasonal power demand.
• Gross Margin -- 41%, down from 49% in the second quarter as higher seasonal energy costs impacted profitability.
• Cost to Mine -- $42,100 per Bitcoin, an increase from $36,500 in the second quarter caused by peak summer power prices.
• Bitcoin Reserve -- 8,427 Bitcoin as of Sept. 30, representing a 5% increase from the 8,002 Bitcoin held at the end of the second quarter.
• Satoshis Per Share -- 11,572, representing a 5% increase from 10,989 Satoshis per share at the end of the second quarter.
• Revenue per Bitcoin -- $71,100, a modest decline from $71,900 in the second quarter.
• SG&A Expenses -- 4% of revenue, reflecting a lean corporate structure according to management.
• Digital Asset Appreciation -- 39% increase in the price of Bitcoin during the quarter, rising from $59,800 to $83,400.
• Fleet Size -- 89,242 Bitcoin miners, providing a total hashing capacity of 28.1 EH/s as of quarter-end.
• Bitcoin Sales -- 465 Bitcoin, sold systematically during the quarter to cover energy and operating costs.
• ERCOT Peak Demand -- 91.1 gigawatts on July 22, representing a 6% increase over the previous record set in 2023.
• Energy Demand Projection -- 50% of U.S. electricity demand growth through 2030, expected to be driven by data centers according to the International Energy Agency.

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RISKS

• Michael Ho stated, "The main driver behind these increases was energy as seasonal power costs were higher across our sites," referring to the rise in the cost to mine Bitcoin during the quarter.

SUMMARY

American Bitcoin Corp. (NASDAQ:ABTC) reported a transition to net profitability for the third quarter, primarily driven by the appreciation of its digital asset treasury and disciplined mining operations. Management stated that the company remains focused on increasing Bitcoin per share by mining at a structural discount to spot prices while avoiding the use of at-the-market equity programs or open-market acquisitions. The company reported that rising electricity demand from artificial intelligence and advanced manufacturing sectors is putting upward pressure on power capacity costs across the U.S. market. Management indicated that it maintains a lean corporate structure and operational flexibility to respond to seasonal energy price fluctuations, particularly within the ERCOT market. The company reported that its Bitcoin reserve has grown to become one of the 15 largest publicly traded treasuries globally.

• Eric Trump stated, "SG&A at roughly 4% of revenue, an efficiency number that is a singular priority of the ABTC team."
• Mike Ho noted, "The value of our Bitcoin reserve increased with Bitcoin's price appreciation of 39% during the quarter."
• Management reported that capacity could be increased at existing sites by replacing older miners with newer generation units that operate at approximately 10 joules per terahash.
• The company stated that it monitors derivative markets to generate premiums during periods of high volatility, although it did not execute such trades during the third quarter.
• Eric Trump noted that the company's Bitcoin per share increased 106% year over year despite Bitcoin's market price declining 27% over the same period.
• Management indicated that Bitcoin mining serves as a flexible energy consumer that can secure sites before full data center infrastructure for artificial intelligence is completed.

INDUSTRY GLOSSARY

• Satoshis: The smallest unit of Bitcoin, equal to one hundred-millionth of a single Bitcoin.
• EH/s (Exahash per second): A measure of mining power representing one quintillion hashes per second.
• ERCOT (Electric Reliability Council of Texas): The organization that operates the electrical grid and manages the deregulated market for the majority of Texas.
• ASIC (Application-Specific Integrated Circuit): Specialized hardware designed for the sole purpose of mining digital currencies efficiently.
• Hash price: A metric that calculates the daily revenue a miner can expect from a specific amount of hashing power.
• ATM program (At-the-Market): A type of equity offering that allows a company to sell shares into the existing secondary market at prevailing prices.
• Bitcoin Halving: A programmed event that occurs every four years, reducing the reward for mining a block by 50%.
• Adjusted EBITDA: A non-GAAP financial measure that evaluates operating performance by excluding certain non-cash items and non-recurring transactions.

Full Conference Call Transcript

Operator: Good afternoon, and welcome to American Bitcoin's Third Quarter 2026 Earnings Call. Following prepared remarks, we will open the line for questions. Joining us on the call today are American Bitcoin's Chief Executive Officer, Mike Ho; and Co-Founder and Chief Strategy Officer, Eric Trump. As a reminder, this call is being recorded, and a transcript will be made available on abtc.com. Before we begin, please note that during this call, forward-looking statements will be made within the meaning of the federal securities laws. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially.

For a detailed discussion of those risks, please refer to American Bitcoin's filings with the Securities and Exchange Commission, including the most recent annual report on Form 10-K for the fiscal year ended December 31, 2025, and subsequent quarterly reports on Form 10-Q. American Bitcoin undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances after the date of this call, except as required by law. During this call, the company may also discuss certain non-GAAP financial measures.

A reconciliation of these measures to the most directly comparable GAAP measures is included in the company's earnings release, which is available on the Investor Relations section of our website and was furnished with the Form 8-K filed with the SEC. I would now like to turn the call over to American Bitcoin's Chief Executive Officer, Mike Ho.

Michael Ho: Thank you, and good afternoon. This quarter, American Bitcoin remained focused on mining Bitcoin efficiently and accumulating it at a structural discount to spot. We have long-term conviction in Bitcoin, and our mining model allows us to pursue that objective through disciplined decisions around power costs, fleet operations and capital allocation. Summer power demand was especially strong in markets like Texas. ERCOT set an all-time peak of approximately 91.1 gigawatts on July 22. That's 6% above the previous 2023 record. Against that backdrop, we prioritize economic output over maximum uptime, making thoughtful decisions about how and when we operate. Our objective isn't simply to maximize production at any cost.

It's to operate efficiently while maintaining the flexibility to respond as power conditions change. That approach helped us grow our strategic Bitcoin reserve and increase Bitcoin per share, reinforcing our focus on long-term Bitcoin per share growth. Looking beyond this quarter, electricity demand is increasing across the economy, driven in part by artificial intelligence, data centers and advanced manufacturing. According to the International Energy Agency, data centers alone are projected to account for nearly half of U.S. electricity demand growth through 2030. This longer-term demand is also putting pressure on the cost of securing power capacity. For American Bitcoin, power is more than an operating expense. It's fundamental to our mining economics and how we evaluate opportunities for the future.

Our experience operating at the intersection of Bitcoin and energy gives us a practical understanding of reliable power, efficient infrastructure and long-term operating economics. With that as a backdrop, let me walk you through our third quarter results. In the third quarter, we mined approximately 891 Bitcoin compared with 932 in Q2. Revenue was approximately $63.4 million, down about 5% from $67 million in Q2. That's a reflection of lower Bitcoin production and a modest decrease in revenue per Bitcoin mined of approximately $71,000 this quarter. That compares with $71,900 in Q2. Cost of revenue was approximately $37.5 million, up from approximately $34 million in the second quarter.

Gross profit was approximately $25.8 million, representing about a 41% margin compared to $33 million and 49% in Q2. The cost to mine was about $42,100 per Bitcoin, up from about $36,500 in Q2. The main driver behind these increases was energy as seasonal power costs were higher across our sites. We reported net income of approximately $126 million compared with a net loss of about $57.2 million in Q2. Adjusted EBITDA was approximately $221 million compared with a loss of $45 million in Q2. This includes about $197.3 million in noncash gains on digital assets compared to an approximate $71.2 million loss last quarter.

The value of our Bitcoin reserve increased with Bitcoin's price appreciation of 39% during the quarter. Our financial results reflect both the performance of our operating business and the appreciation in the value of our Bitcoin reserve. While mark-to-market adjustments can create significant quarter-to-quarter swings in reported earnings, they reflect the value of the Bitcoin we hold at a point in time. Our approach does not change with the quarterly mark. We manage the reserve as a long-term asset. We stay focused on our North Star, growing Bitcoin per share. During the quarter, we sold a portion of our Bitcoin production to cover operating costs.

However, in the same quarter, we did not issue shares through our ATM program or complete any at-the-market Bitcoin purchases. We remain thoughtful about how we manage our balance sheet, evaluating capital allocation decisions based on the needs of the business and our long-term objective of increasing Bitcoin per share. With that, I'll turn it over to Eric.

Eric F. Trump: Thanks, Mike. Start with the number that matters most to us, Bitcoin per share. Everything American Bitcoin does is designed to make that number go up. This quarter, as Mike alluded to, net income of $126 million, adjusted EBITDA of $220.8 million, a gross margin of approximately 41%. Now the reserve that those numbers come from. We finished September with 8,427 Bitcoin, approximately $35 million added at quarter end prices. Today, we're past 8,500 BTC, which means more than 500 Bitcoin added since June 30, placing us as the 15th largest publicly traded Bitcoin treasury anywhere on earth. Bitcoin itself rose approximately 39% over the quarter from about 59,800 to 83,400.

Thus, we saw incredible growth while witnessing the exponential increase of the value of our treasury, both at the same time. But the size of our reserve is only half the story. The other half is how much of it each shareholder actually owns. As of September 30, our Satoshis per share stood at approximately $11,600, up 5% from about $11,000 at June 30. In roughly 13 months from our NASDAQ debut through the end of the third quarter and honestly, through a very difficult time in the digital asset market, Bitcoin per share is up approximately 184%. Year-over-year, it has more than doubled, up approximately 106%, while Bitcoin's own price fell approximately 27% over the same period.

That is the business. That's what separates us from every other debt and virtually every other business in our space. Tremendous growth, tremendous margin and incredible results even in the face of digital asset headwinds. Through it all, we've built one of the largest and most successful publicly traded corporate Bitcoin treasuries anywhere in the world. And here's the part I'm proudest of. We didn't buy a single coin this quarter. Nothing purchased on the open market, not one share issued through our ATM program.

Every Bitcoin added to that reserve came out of our own machines, nearly 90,000 miners with tens of thousands of operating machines working around the clock, 24 hours a day, 7 days a week to secure our network. Anyone with capital can buy Bitcoin at par. Very few can build a company that produces it at a fraction of market price, grows the reserve out of that production and increases Bitcoin per share quarter after quarter. That is a different business, and that compounds differently. The same discipline that holds on cost.

We run one of the world's largest mining platforms on a lean corporate structure with selling, general and administrative expenses at roughly 4% of revenue, an efficiency number that is a singular priority of the ABTC team. I urge you to look across our comp set. We set the standard. As to the 41% gross margin that we're incredibly proud of, that was earned in one of the most expensive power periods of the entire year. Quarter 1, 2026 represented gross margins of 52%. Quarter 2 of this year, gross margin of 49%. Cost control isn't a footnote for us. It's what separates us from all others. Our edge is not a forecast about where Bitcoin trades next.

It's controlling infrastructure, owning the economics and making disciplined decisions that let a reserve compound in the way in which we designed, which brings me to energy. Among the most important conversations in this country right now, the demand for reliable, affordable electricity is central to our economy, our GDP and our future, and that isn't changing anytime soon. Artificial intelligence, data centers, advanced manufacturing, every one of them is a bet on power. At American Bitcoin, we live that relationship every hour of every day. Energy isn't a line on a spreadsheet. It's the input, the cost and our core advantage.

The companies that understand the energy, the infrastructure that delivers it and the economics that govern it will be the ones standing when the cycle turns. I believe the intersection of digital assets, American energy and critical infrastructure is one of the greatest opportunities in this country over the next decade. These industries are converging and ABTC is standing at the point where they all meet. We're proud of what we've built over such a short period of time, 14 months of being public, a company that's far less than 2 years old since inception, $126 million of net income this quarter, $220.8 million of adjusted EBITDA this quarter, 41% gross margins, a mere 4% in SG&A.

This is what we set out to create. Thank you to our ABTC team, our partners, our incredible shareholders. We are just getting started.

Operator: [Operator Instructions] Your first question comes from Mike Colonnese with H.C. Wainwright.

Michael Colonnese: First one for me, it would be helpful if you guys could speak to any internal thresholds at American Bitcoin that we would need to see trigger in the market before you consider expanding the mining fleet from here or -- and/or acquire additional coins in the open market via share sales?

Michael Ho: Mike, thanks for the question. It's a dynamic list of considerations, but some of the items that are top of mind, obviously, it comes down to hash price. What are the returns from operating ASICs against what is the cost of the CapEx? CapEx for both the new silicon, the new ASICs that we would put in service as well as what are the energy markets, what are the forward hedges, what are the power prices. And ultimately, there is a minimum return of capital that we underwrite to.

Michael Colonnese: And then just as a follow-up. So if we were to see a sustained inflection in hash prices as Bitcoin prices presumably continue to recover from cycle lows here, how quickly can you feasibly bring incremental capacity online when you look at both data center infrastructure capacity and then also procuring new ASICs from the manufacturers here?

Michael Ho: As of current, the manufacturers have available inventory. And if you look at the manufacturer's latest generations of their ASICs, which are roughly 10 joules a tera hash, we could look at adding capacity on our existing sites just by replacing older generation machines.

Michael Colonnese: And then in terms of that duration, right, from actually procuring from a supply chain standpoint, getting those new orders in place and then beyond existing excess capacity, really what that lead time can look like if you guys meaningfully wanted to expand hash rate, let's say, over the near term?

Michael Ho: Mike, you've been following us for some time now, and you know we've been doing this for a very long time. And I think we've time and time again proved to the market that we're able to turn things around very quickly. So in terms of the things that we can control, once we receive the ASICs, getting them installed, fine-tuned and hashing is a very quick process. What we don't control is -- what we don't control will be on the manufacturer side, what their inventory levels are and what logistics could look like.

Operator: Your next question comes from Kevin Dede with JonesTrading.

Sky Moore: This is Sky Moore calling in for Kevin Dede. And my first question is, with the next halving about 1.5 years out, how are you guys positioning the business for it across the fleet, across power costs and the balance sheet? What are you guys' next steps to drive power costs lower? And how much room is left before the halving?

Michael Ho: Sky, you're absolutely right that the halving is coming up. However, this isn't the first halving that we've lived through. This is -- the halving is cyclical every 4 years. And we've been an operator for much longer over many cycles, and we've always been able to manage through the dynamic fluctuations in hash price. What we can control, again, is our efficiency, how we operate. We only mine when it's possible. And we've always been able to outperform the average market where our costs, our inputs and our energy costs have beat the market. So even when margins compress, we've been able to mine more Bitcoin even if it's -- even at a lower hash price.

Sky Moore: Great. A follow-up to that, as you guys mentioned selling some of your Bitcoin production to cover operating costs this quarter. How much did you guys sell? Is that a go-forward policy? Any color on how you guys are approaching that going forward?

Michael Ho: Yes. We sold roughly 465 Bitcoin, and that's just a systematic sale of being able to cover our operating costs. As a Bitcoin miner, our biggest line item is energy. And this is off of the gross Bitcoins that we mined. It's almost immediately sold to cover the OpEx.

Operator: Your next question comes from Matthew Galinko with Maxim Group.

Matthew Galinko: Maybe can we start with just a follow-up to your last answer. I think you mentioned it's more programmatic selling at this point, but is there an opportunity to maybe mix in derivatives to take a more proactive treasury management, I guess, position when it comes to maybe generating premium from selling some of the production?

Michael Ho: Great question. And we monitor the derivatives markets very closely. In times with heightened volatility, you're absolutely right. We could look at selling in-the-money calls or selling near-dated calls as well to be able to generate a slight premium. Based on the current levels of implied vol we're not seeing a significant premium over just spot selling. With derivatives, it's not a free lunch. You're collecting premium, but you're trading that off of taking market volatility.

Matthew Galinko: And maybe as a follow-up, you covered pretty extensively power costs, their effect on third quarter costs and how you approach operations in that environment. Can you maybe expand on particularly following a lot of the pushback we've seen on new HPC builds in recent months, kind of near term and medium term, do you see opportunities to push into kind of new territories and kind of new data centers to build out Bitcoin mining in lower cost jurisdictions? Or do you expect that pushback to kind of extend to Bitcoin mining? And maybe fill in some of the pipeline you're thinking about and how that evolves in the coming months and years.

Michael Ho: Yes, absolutely. Like our name suggests, we are American Bitcoin, and we are in the business of mining Bitcoin. Energy is integral to how we operate our business. It is the largest line item. We canvass the energy markets globally to look for opportunities. And you're absolutely right that HPC has been a competitor for the same electrons, although we will continue to monitor the right opportunities to drive the best returns and value for our shareholders.

Matthew Galinko: Sorry, maybe just to follow up on that. Are you seeing HPC competitors for those electrons moving more into sites that would traditionally have been thought of as Bitcoin mining only, particularly on the smaller end?

Michael Ho: Yes. I think as recent announcements have shown, a lot of our peers have been shifting from Bitcoin mining and looking to either do powered land leases or develop data centers for AI use cases.

Operator: [Operator Instructions] Your next question comes from Brian Vieten with Siebert.

Brian Vieten: Mike, can you just give us some perspective on the competitive environment? There's hash rate coming back online. Do you have a good sense of what's driving that?

Michael Ho: It's the hash rate that comes online is from new -- it's mostly international. We're seeing new capacity come online in Asia, in parts of Europe and in the MENA region.

Brian Vieten: Okay. Great. And then Eric and Mike, what should we be most keyed into as far as policy developments on the horizon? Like is there any meaningful difference for Bitcoin here with the election out of the way? And then I guess, how do you envision the pace of Bitcoin adoption changing as GENIUS Act approaches early next year?

Eric F. Trump: Well, I can hop in. At least we try to run a very agnostic business kind of separate from obviously politics, but it was interesting that you did see a big kind of jump in BTC price this morning and kind of throughout the day. I'm not looking at it right the second, but it's up a couple of percent this morning, I think factoring in that maybe with slick government, without Senate, obviously, different from the executive branch. It's actually almost like a flight to security, right? And I think we saw that this morning. And I think traditionally, we've seen that out of kind of BTC. So it's generally interesting. It was a big pop this morning.

I think it went from what was it guys, 77, somewhere in there to about a little over 80. So obviously, government and obviously, politics weighs in this in some way, shape or form. And obviously, we saw it this morning.

Operator: Your next question comes from Ben Sommers with BTIG.

Benjamin Sommers: So Mike, a little bit on the comments before about the data center market evolving with more companies shifting towards HPC. Can you just talk a little bit about your partnership with Hut 8 and how that may be -- if you want to expand power capacity that gets your hands on potentially sites that you maybe otherwise wouldn't have had the opportunity to acquire and kind of how you guys maybe help Hut with speed to market just given the fact that you could potentially energize the Bitcoin mining loads earlier than HPC?

Michael Ho: I think there are a lot of complementary factors when it comes to Bitcoin mining to be able to secure a site where power is available before a data center can be built as well as the ancillary components that need to come with an AI data center, such as fiber and connectivity. With Bitcoin mining, our bandwidth consumption is quite low. We can operate off of Starlinks. It's a little different for AI use cases that require fiber. in cases where there -- where power is available and something such as fiber takes time, it is a great fit to be able to utilize Bitcoin mining that is an agnostic energy consumer to be able to secure the sites.

Benjamin Sommers: Super helpful. And then kind of on the hash rate topic, just kind of curious how you're seeing hash rate respond maybe post summer seasonality with power prices being down in key markets and then kind of as the response to Bitcoin prices being relatively higher over the past couple of months?

Michael Ho: Yes, that's right. hash rate has come up in this recent quarter. However, hash rate is not progressing on the same exponential CAGR as we've seen in the recent years. If you zoom out, hash rate may have -- it may appear that hash rate has come up, although it looks relatively flat on a longer time horizon. And that still reflects what's happening in the markets with a lot of our peers shutting off their machines, pivoting their energy supply for AI use cases. And as you've seen with some of these leases, they're very long durated. They're 15 years, 18 years or beyond.

These are machines that once they come off the racks are not easily able to find their way back onto the network.

Operator: This concludes the question-and-answer session and today's call. Thank you for joining. You may now disconnect, and have a wonderful rest of your day.

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