Trump family-linked American Bitcoin posts $59 million Q4 loss as bitcoin price slides

• American Bitcoin posted a fourth-quarter loss of $59 million as the plummeting price of bitcoin eroded the value of its holdings.
• The company now holds over 6,000 BTC, with roughly one-third acquired through mining and two-thirds through open-market purchases and strategic transactions.
• The company generated $185.2 million in revenue for the year and raised $150.5 million through a fourth-quarter stock offering to fund bitcoin purchases.

American Bitcoin (ABTC), the bitcoin BTC$68,056.93 mining company backed by the family of President Donald Trump, said it lost $59 million in the fourth quarter as the plummeting price of the largest cryptocurrency eroded the value of its holdings.

The company, which went public in September, less than a month before the largest cryptocurrency hit a record high, is pursuing a dual strategy of mining and purchases, with roughly one-third of its BTC coming from mining operations. The rest comes from open-market purchases and strategic transactions, funded in large part by selling stock.

The company, which is 20% owned by Eric Trump and Donald Trump Jr, generated $150.5 million through an at-the-market stock offering during the quarter. The capital allowed it to boost its per-share bitcoin exposure by nearly 50%. It now holds more than 6,000 BTC, it said.

During the quarter, it mined bitcoin at a 53% gross margin, suggesting production costs were significantly below spot prices even as the price of the cryptocurrency fell. Revenue rose 22% from the third quarter.

New Financial Accounting Standards Board (FASB) guidelines require firms to mark crypto holdings to market. Bitcoin’s price fell 23% during the period, forcing American Bitcoin to report a $227 million non-cash loss.

Shares in the company are up 3.8% in pre-market trading at $1.09. They are down nearly 90% from a high of around $9 seen last year.

The company's majority owner, Hut 8 (HUT), reported fourth-quarter earnings on Wednesday, sending the shares down 7% even as rivals such as MARA Holdings (MARA) and Riot Platforms (RIOT) advance.

Hut 8 said it ended the year with an 8,500 MW development pipeline. It also secured a new $200 million revolving credit facility with Two Prime and expanded its Coinbase facility to $200 million, bringing total credit capacity to $400 million.

• MetaMask is expanding the U.S. reach of its blockchain-based debit card with a nationwide rollout following a year-long pilot program.
• The non-custodial card now works everywhere Mastercard is accepted, including support for digital wallets like Apple Pay and Google Pay.
• It joins a market that already features a number of competitors, including cards on the Visa network.

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