Amid a broad downturn in the global cryptocurrency market, American Bitcoin (ABTC.US), which has received significant support from two sons of former U.S. President Donald Trump and is partially owned by the former president himself, reported a surprise loss for the fourth quarter, swinging from profit to loss. Widespread concerns over inflated valuations of artificial intelligence stocks and fears of an "AI disruption," coupled with uncertainty regarding the timing and extent of Federal Reserve interest rate cuts expected in 2026, have put pressure on various risk assets. This includes cryptocurrencies, high-valuation tech stocks, and high-yield corporate bonds, driving Bitcoin to its lowest level of the quarter and destabilizing many so-called digital asset reserve companies.
American Bitcoin, a leading miner of the world's largest cryptocurrency, typically sells its mined Bitcoin during periods of high premiums or holds it anticipating price increases. However, the cryptocurrency sector experienced substantial selling pressure during the fourth quarter and into the first quarter of this year, with Bitcoin plummeting nearly 23% over the three-month period. The company recorded a net loss of $59.45 million for the fourth quarter, compared to a profit of approximately $3.48 million in the same period the previous year. The company had also reported a significant profit in the preceding quarter.
Furthermore, American Bitcoin reported total revenue of $78.3 million for the three months ended December 31, up from $64.2 million a year earlier but falling short of the Wall Street analyst consensus estimate of $79.6 million. The company's operating loss for the fourth quarter was approximately $104.6 million, contrasting with an operating profit of $7.199 million in the third quarter of 2025. Adjusted EBITDA showed a loss of $77.617 million, compared to a profit of about $27.653 million in the prior quarter.
Since reaching an all-time high above $125,000 in October, Bitcoin has undergone a sharp sell-off, a trend that has continued into the new year. Year-to-date, the leading cryptocurrency by market value has fallen sharply by 27% and is down approximately 50% from its October peak. Bitcoin appears to be facing a crisis of identity and a collapse in bullish sentiment, characterized by a "narrative compression." The price decline is not the sole issue; more critically, several core narratives underpinning its long-term value proposition—such as being a hedge, a payment method, and a speculative asset—have simultaneously weakened. Ironically, this is occurring at a time when Bitcoin "seemed to have won," with more favorable regulations, deeper institutional involvement, and improved Wall Street instruments like spot ETFs. Despite these developments, they have not prevented a significant market cap contraction, leading markets to question what will attract new capital and long-term allocations if price appreciation is no longer a default outcome.
The cryptocurrency company operates industrial-scale mining operations, primarily utilizing infrastructure provided by Hut 8, enabling it to produce Bitcoin at a cost significantly below the current market price. Stocks of cryptocurrency reserve companies like American Bitcoin often move in tandem with token prices, as price changes directly impact the value of their reserve assets. These stocks frequently exhibit greater volatility than the underlying tokens themselves.
American Bitcoin was co-founded by Eric Trump, son of Donald Trump, who is also a shareholder in the company. Over the past 12 months, the company's stock price has declined by nearly 22%. Sustained pressure on the share prices of cryptocurrency reserve companies could make it more difficult for them to raise additional capital, thereby hindering their ability to invest in the substantial computational power required for large-scale industrial mining—a core component of their business model.
However, Eric Trump stated in a release that the company currently holds over 6,000 Bitcoin, an increase from the 5,401 held at the end of 2025, with its holding cost remaining in a favorable range. He noted that in the fourth quarter, the company "mined some Bitcoin at a 53% discount to the spot purchase price." Regarding computational power and equipment, as of December 31, 2025, the company's installed capacity was approximately 25.0 EH/s, comprising about 78,000 ASIC miners, with an average fleet efficiency of around 16.3 J/TH.
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