American Bitcoin Corp. (ABTC) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. American Bitcoin Corp. (ABTC) operates as a pure-play Bitcoin accumulation platform, integrating scaled Bitcoin mining with strategic reserve accumulation. The company's financial statements reflect a complex corporate history involving a carve-out from Hut 8 Corp. (effective March 31, 2025) and a reverse acquisition merger with Gryphon Digital Mining, Inc. (effective September 3, 2025). All share and per-share data have been retroactively adjusted for a 1-for-15 reverse stock split effected on July 2, 2026.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|
| Revenue | $67.0 million | $129.1 million | $42.6 million |
| Net Loss | $(57.2) million | $(138.9) million | $(97.2) million |
| Operating Loss | $(74.1) million | $(192.3) million | $(130.6) million |
| Adjusted EBITDA | $(45.0) million | $(136.3) million | $(107.3) million |
| Cash and Equivalents | $18.4 million (as of June 30, 2026) | ||
| Total Assets | $1.31 billion (as of June 30, 2026) | ||
| Bitcoin Holdings | 8,002 BTC (3,090 BTC pledged for miner purchases) | ||
| Miner Capacity | 28.1 EH/s (Total Fleet) |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 205% year-over-year (YTD) to $129.1 million, driven by the deployment of ~14.86 EH/s at the Vega site (late 2025) and ~3.05 EH/s at the Drumheller site (Q2 2026). Bitcoin production rose to 1,749 BTC YTD 2026 compared to 443 BTC YTD 2025.
- Operating Loss Expansion: Operating loss widened to $(192.3) million YTD 2026 from $(130.6) million YTD 2025. This was primarily due to a $188.4 million loss on digital assets (mark-to-market adjustments) and increased depreciation ($54.9 million) from the expanded fleet.
- Derivative Gains: The company recognized a $55.6 million gain on derivatives YTD 2026, primarily from Bitcoin redemption and put options associated with Bitmain purchase agreements, partially offsetting operating losses.
- Cost Structure: Cost of revenue increased to $63.6 million YTD 2026 due to higher energy consumption from the expanded mining fleet. G&A expenses decreased YTD 2026 compared to 2025 due to the absence of merger-related transaction costs.
Outlook, Risks, and Contingencies
- Capital Strategy: The company continues to fund operations and Bitcoin accumulation through an At-The-Market (ATM) equity program, raising $144.1 million in the first half of 2026. Total ATM proceeds since inception reached $385.2 million.
- Legal Settlement: In July 2026, the company settled a Department of Justice investigation regarding a prior PPP Loan (received by predecessor Gryphon) for approximately $2.5 million with no admission of liability.
- Market Risks: Performance is heavily dependent on Bitcoin price volatility and network difficulty. A decline in Bitcoin price from ~$87,500 to ~$59,800 during the first half of 2026 contributed significantly to the unrealized loss on digital assets.
- Operational Risks: The company faces tariff risks on imported mining equipment and credit risk related to counterparties (e.g., Bitmain) where Bitcoin is pledged as collateral.
Investor Verification Checklist
- Bitcoin Valuation Impact: Verify the sensitivity of the balance sheet to Bitcoin price fluctuations, as ~$479 million of assets are digital assets subject to fair value adjustments.
- Pledged Assets: Confirm the status and redemption terms of the 3,090 BTC pledged to Bitmain for miner purchases, representing a significant portion of the strategic reserve.
- Liquidity Runway: Assess the sufficiency of the $18.4 million cash balance against operating cash burn ($63.8 million used YTD) and future capital expenditure requirements.
- Related Party Transactions: Review the Master Colocation and Management Services Agreements with Hut 8, which account for a significant portion of operating costs and lease liabilities ($205.1 million).
- Reverse Stock Split: Ensure all historical share counts and per-share metrics are adjusted for the 1-for-15 reverse split effective July 2, 2026.