Holding 6,000 BTC but losing $150 million, how does American Bitcoin's contradictory financial report reevaluate the value of mining companies?

When the labels “Trump Family” and “Bitcoin Mining Company” are combined, market attention often focuses on the resonance between political hype and crypto narratives. However, American Bitcoin’s first full fiscal year report in early 2026 reveals a more complex business picture: against the backdrop of volatile Bitcoin prices in 2025, this highly scrutinized company recorded a net loss of $153.2 million. Is this figure driven by deteriorating fundamentals or a financial measurement game of digital assets? This article centers on American Bitcoin’s 2025 financial report, dissecting its data composition, market controversies, and industry implications.

Overview of the Massive Loss Event

On February 26, 2026, American Bitcoin Corp (ABTC), a Bitcoin mining company with deep ties to the Trump family, announced its full-year 2025 financial results. The data show that this Nasdaq-listed company achieved $185.2 million in revenue for the year but recorded a net loss of $153.2 million. The primary driver of this significant loss is not poor business operations but a non-cash unrealized loss of $227.1 million (Mark-to-Market Loss). This loss stems from end-of-period valuation adjustments of Bitcoin holdings on its balance sheet based on fair value accounting standards.

Background and Expansion Timeline

American Bitcoin’s story began in March 2025, when Eric Trump officially launched it as a co-founder and Chief Strategy Officer. The company’s core strategic goal was clear: to scale up Bitcoin accumulation.

• Q1 2025: Operated as an independent publicly listed company, establishing the “accumulate Bitcoin” strategy and promoting a political vision of making all remaining Bitcoin “Made in America.”
• Q2-Q4 2025: Expanded mining operations through partnerships with Hut 8, deploying computing power. During this period, mined a total of 1,654 BTC.
• End of 2025: Held 5,401 BTC on its balance sheet, about one-third of which came from mining output, with the rest acquired through strategic trades and market purchases.
• Early 2026: On the eve of the financial report release, announced Bitcoin reserves had surpassed 6,000 BTC.

Structural Breakdown of Financial Data

To understand American Bitcoin’s true financial condition, it is essential to analyze its core data structurally. The following key indicators are compiled from the company’s financial report:

• Total Revenue: $185.2 million. Mainly from Bitcoin mining output, with a 22% quarter-over-quarter increase in Q4, indicating effective expansion of hash rate and operational optimization.
• Net Loss: $153.2 million. An accounting loss with no direct relation to operating cash flow.
• Main Loss Source: $227.1 million non-cash unrealized loss. According to accounting standards, even if not sold, the fair value of Bitcoin holdings at period-end below cost must be recognized as a loss.
• Mining Cost Advantage: Gross margin of 53%. The company claims it mined Bitcoin at a cost 53% below spot market prices.
• Bitcoin Holdings: End of year holding of 5,401 BTC, which increased to over 6,000 BTC by the end of February 2026.
• Stock Price Performance: Since peaking in September 2025, the stock has fallen nearly 90%, with market capitalization shrinking significantly.

Factually, American Bitcoin’s mining operations generate substantial revenue and positive gross profit. The perspective is that management clearly views the growth in Bitcoin reserves as a more important performance indicator than short-term accounting profits. The hypothesis is that if the company had sold some Bitcoin in Q4 2025 or afterward to lock in profits, its net loss on the financial statements would be significantly reduced or even turned into profit. However, this would contradict its “HODL” strategy.

Market Sentiment Analysis

Market interpretations of American Bitcoin’s financial report show significant divergence, mainly falling into two mainstream viewpoints:

Critics: Attribute the loss to “top-tick buying” and accounting manipulation.

Some argue that the $227.1 million unrealized loss directly proves that American Bitcoin, especially during 2025 when Bitcoin briefly surged past $126,000, accumulated a large position by buying at market prices, resulting in an average cost higher than the year-end Bitcoin price. Without fair value measurement, this “paper unrealized loss” could have been hidden under traditional cost basis accounting. Its revelation exposes the risks of its buying timing.

Supporters: Emphasize “strategic losses” and focus on actual control.

Represented by Eric Trump and supporters, they believe this is merely a numbers game under accounting rules. They highlight that the company acquired Bitcoin at a “structural discount” below market spot prices (confirmed by approximately 50% gross margin throughout the year). The loss reflects a snapshot of market quotes at a specific time, while the core value lies in the actual control and accumulation of over 6,000 BTC. As long as the company does not sell, these unrealized losses will never turn into real cash outflows.

Authenticity of the Business Narrative

American Bitcoin’s story constructs a narrative quite different from traditional enterprises: “We do not aim for dollar profits but maximize Bitcoin quantity.” The authenticity of this narrative depends on distinguishing its “words” from its “actions.”

• Words: Long-term bullish on Bitcoin, accumulating through mining and purchases, betting on the digital future.
• Actions: In 2025, about 81% of revenue ($185.2 million) was reinvested into Bitcoin holdings (adding thousands of BTC). The company also raised funds through equity financing to support Bitcoin purchases.

The actions and words are highly aligned. Therefore, despite recording massive losses on the financial report, for investors who believe in a “Bitcoin-centric” approach, American Bitcoin’s narrative is genuine and internally consistent. However, it is also an undeniable fact that political hype is fading: in February, Trump’s State of the Union did not mention cryptocurrencies at all, and policy resources are clearly shifting toward artificial intelligence industries. When political narratives fail to translate into policy benefits, the true test of the business model is the market’s brutal scrutiny.

Industry Structural Impact Analysis

American Bitcoin’s case is not isolated; it has profound implications for the entire crypto mining industry and broader digital asset holding companies:

Accelerating the adaptation of accounting standards.

While the US Financial Accounting Standards Board (FASB) has allowed fair value measurement of crypto assets, cases like American Bitcoin clearly demonstrate the reporting volatility this standard introduces. Investors and analysts are learning to “see through” profit and loss statements, paying more attention to operational efficiency, cost basis, and non-traditional metrics like effective hash power.

Reshaping miner valuation models.

Traditional P/E valuation methods are ineffective for “HODL-type” miners. The market is increasingly adopting NAV (Net Asset Value) valuation—“Bitcoin market value held + hardware assets - liabilities.” American Bitcoin’s stock performance will increasingly correlate with its Bitcoin holdings’ USD value rather than just mining output.

Differentiating business models among miners.

The American Bitcoin case will intensify strategic differentiation among miners. Some favor “immediate sale” to cover operational costs and generate stable fiat profits; others see mining as a low-cost way to accumulate Bitcoin long-term. Notably, more leading miners are diverging from American Bitcoin’s “pure HODL” approach. Marathon is expanding into AI data centers; Hut 8 reported a Q4 net loss of $279.7 million but is shifting toward AI; Cipher Mining and TeraWulf are selling some or all of their holdings.

Multi-Scenario Evolution Projections

Based on current facts, there are several possible future trajectories for American Bitcoin:

Scenario 1: Bitcoin Price Rises (Bullish).

If Bitcoin prices continue to rise significantly above American Bitcoin’s average cost basis, the unrealized losses from 2025 will quickly turn into unrealized gains. The company will hold large Bitcoin reserves and report high paper profits, becoming a market and media focus, confirming its strategic foresight.

Scenario 2: Bitcoin Remains Flat or Declines (Stress Test).

If the market enters a prolonged bear phase, American Bitcoin will face ongoing paper losses. As of February 27, 2026, Bitcoin hovered around $67,000. This could impact its ability to raise funds through equity offerings, increasing shareholder explanation costs. However, as long as its mining cash flow covers operating expenses and debt interest, the company can survive without selling Bitcoin, waiting for the next cycle.

Scenario 3: Regulatory and Political Risks (Adverse).

As a Trump family-linked enterprise, American Bitcoin inevitably carries political connotations. Currently, the Trump administration emphasizes AI policy, with cryptocurrencies absent from the State of the Union. Future unfavorable policies against cryptocurrencies or targeting Trump family businesses could lead to non-market regulatory scrutiny, posing substantial operational and Bitcoin reserve security risks.

The $153.2 million loss of American Bitcoin reflects a multifaceted prism revealing the complexity of the digital asset ecosystem. On a factual level, it results from new accounting standards; on an analytical level, it sparks debates on corporate strategy and financial reporting; on a speculative level, it points toward the future valuation model of Bitcoin-centric enterprises. As political hype fades and the focus returns to business fundamentals, whether American Bitcoin can navigate cycles will depend on Bitcoin’s long-term performance and the ultimate realization of its “HODL” strategy.