American Bitcoin Corp (ABTC): A High-Conviction Long-Term Play in Bitcoin Treasury Growth

The Bitcoin treasury sector is still in its infancy, but companies like American Bitcoin Corp (ABTC) are already demonstrating the kind of strategic vision and operational grit that could redefine institutional-grade exposure to digital assets. With a rapidly expanding Bitcoin reserve, a disciplined accumulation strategy, and a valuation that appears disconnected from its intrinsic value, ABTC is emerging as a compelling long-term play for investors willing to bet on the next phase of Bitcoin's institutional adoption.

Strategic Bitcoin Accumulation: Building a Treasury with Precision

American Bitcoin's approach to Bitcoin accumulation is a masterclass in dual-track execution. By combining in-house mining operations with strategic market purchases, the company has grown its Bitcoin holdings to 5,098 BTC as of December 14, 2025, securing a spot among the top 20 publicly traded Bitcoin treasury companies. This growth is not accidental-it's the result of a calculated strategy that leverages both self-mining and partnerships, including a miner purchase agreement with Bitmain.

What sets ABTC apart is its transparency. The company introduced two groundbreaking metrics: Satoshis Per Share (SPS) and Bitcoin Yield, which track the evolution of Bitcoin exposure per share and its growth rate, respectively providing investors with a clear lens. These metrics provide investors with a clear lens to evaluate the company's Bitcoin-centric value proposition. For instance, SPS surged to 533 by December 2025, reflecting a 96.5% increase in Bitcoin exposure per share year-to-date. Such granular data is rare in the sector and underscores ABTC's commitment to institutional-grade accountability.

Operational Momentum: Scaling Hashpower and Margins

ABTC's third-quarter 2025 results reveal a company in motion. Revenue more than doubled quarter-over-quarter, and gross margins expanded from 49% to 56%, driven by a 2.5x increase in Bitcoin mining capacity. This expansion was achieved with an average fleet efficiency of 16.3 joules per terahash (J/TH), outperforming the industry benchmark.

The broader Bitcoin mining sector is facing headwinds, including rising network difficulty and energy costs, which have pushed mining costs to an all-time high of $114,842 per BTC in October 2025. Yet ABTC's efficiency and disciplined cost management have allowed it to maintain profitability. For context, industry leaders like Marathon Digital and Riot Platforms reported gross margins exceeding 60–70% in Q3 2025, suggesting ABTC has room to improve as its operations scale.

Valuation Dislocation: A Discounted Play on Bitcoin's Future

Here's where ABTC's story becomes particularly intriguing. Despite holding 5,098 BTC-a reserve valued at approximately $509.8 million assuming a $100,000 Bitcoin price-the company trades at a $27.54 million market cap, or $1.65 per share, near its 52-week low. This stark dislocation is not unique to ABTC; the broader Bitcoin treasury sector has seen market values of digital asset stocks plummet from $150 billion to $73.5 billion in Q4 2025 according to market analysis. However, ABTC's discount is especially pronounced.

For comparison, MicroStrategy (MSTR), the sector's dominant player, trades at a market cap below the value of its Bitcoin holdings alone. If ABTC's valuation were to align with its Bitcoin reserves, even at a conservative 10% discount to Bitcoin's spot price, the stock could see significant re-rating. This arbitrage opportunity is amplified by ABTC's aggressive accumulation strategy. The company added 416 BTC to its reserve in a single purchase, and its Satoshis Per Share metric has risen 3.35% in just 12 days according to market data, signaling relentless growth.

The Path Forward: Partnerships and Expansion

ABTC's recent operational updates highlight its momentum. In November 2025, the company expanded its holdings to 4,004 BTC by adding 139 BTC through a mix of mining and purchases according to financial reports. By December, it had surged past 5,098 BTC, driven by strategic miner acquisitions. Eric Trump, ABTC's co-founder and chief strategy officer, has emphasized the company's role in "building America's Bitcoin infrastructure backbone," a vision that aligns with the sector's long-term institutional trajectory.

While the stock has faced volatility-closing at $1.88 on December 2, 2025, after a -47.49% drop-this dislocation reflects broader market pressures rather than operational failure. ABTC reported a $3.5 million net income for Q3 2025, compared to a $0.6 million loss in the prior-year period, proving its business model is not only viable but scaling.

Conclusion: A High-Conviction Bet on Bitcoin's Institutional Future

American Bitcoin Corp is not for the faint of heart. Its valuation dislocation, while extreme, is a double-edged sword-offering outsized potential for those who believe in Bitcoin's long-term institutional adoption. With a strategic accumulation model, operational momentum, and a management team focused on transparency and efficiency, ABTC is positioned to benefit from the sector's next phase of growth.

For investors with a multi-year horizon, ABTC represents a rare combination of discounted value and high-conviction execution. As the Bitcoin treasury sector matures, companies that can scale their reserves while maintaining profitability-like ABTC-are likely to outperform. In a market where patience is a virtue, this is a play worth holding.