American Bitcoin Corp’s Earnings Call: Hash Rate, Difficulty Drivers, and Strategy Shifts Clash

Date of Call: Aug 3, 2026

Financials Results

• Revenue: $67 million, up approximately 8% from $62.1 million in Q1
• EPS: Net loss for the quarter was approximately $57.2 million, compared with a net loss of $81.8 million in Q1
• Gross Margin: 49% in Q2, compared with 52% in Q1

Business Commentary:

Record Quarterly Production and Revenue Growth:

• American Bitcoin mined a record 932 Bitcoin in Q2 2026, up 14% from Q1 2026, marking the highest production on record.
• Revenue increased to approximately $67 million, a 8% rise from Q1 2026.
• The growth was driven by higher production, the full-scale operation of the Drumheller site, and a downward adjustment in network difficulty, despite a declining Bitcoin price.

Strategic Reserve Accumulation:

• The strategic reserve grew to 8,002 Bitcoin by the end of Q2 2026, an increase of nearly 1,000 Bitcoin or 14% from the beginning of the quarter.
• This growth was primarily from mine production, supplemented by strategic at-market purchases of approximately $4 million.

Cost Management and Margin Stability:

• The cost of revenue increased to $34 million, and the gross margin was approximately 49%, slightly down from 52% in Q1 2026.
• Despite a 12% decline in Bitcoin price on a period-end basis, the company managed to keep its gross margin nearly stable around 50%, reflecting effective cost management and operational efficiency.

Focus on Operating Excellence:

• The company maintained a focus on operating excellence with a net loss improvement from $81.8 million in Q1 to $57.2 million in Q2 2026.
• This was achieved by running a disciplined and efficient business, focusing on economic output optimization, and maintaining a lower structural discount to purchase Bitcoin at the spot market.

Sentiment Analysis:

Overall Tone: Positive

• Management highlighted record quarterly production, revenue growth, and reserve accumulation despite a declining Bitcoin price. Statements like "Our conviction in Bitcoin’s long-term adoption is unchanged" and "We are accelerating in a time when so many other companies are slowing down" reflect a confident and optimistic tone about the company's positioning and future.

Q&A:

• Question from Greg Lewis (BTIG): I was hoping that you could talk a little bit more, now that the facility is up and running, how are we thinking about the future build-outs of self-mining here over the next 12 to 24 months?
  Response: Site availability and competition for power have intensified due to AI demand, making it more challenging and competitive to source new sites, but the company believes it can still find competitive locations.

• Question from Greg Lewis (BTIG): I was kind of wondering, as we sit here in early August, how are you thinking about positioning the company into progress around the CLARITY Act?
  Response: The CLARITY Act is out of the company's control; the focus remains on operating metrics, as the company increased Bitcoin mined and gross profit while maintaining near 50% gross margins despite a declining Bitcoin price.

• Question from Matthew Glinko (Maxim Group): Firstly, I’m hoping you could maybe talk about your pulse on the network hash rate, how responsive other miners have been, in your view, to this price environment, and what you expect from the other miner behavior as we move into the halving.
  Response: The overall network hash rate has been stable or decreasing as peers pivot to AI data centers, creating a more permanent reduction in mining capacity, which benefits American Bitcoin by allowing it to increase its production share.

• Question from Matthew Glinko (Maxim Group): Maybe as a follow-up to that question, I know you talked about the difficulty in sourcing additional sites, but do you have a sense for what the pipeline of unique sites that are appropriate for Bitcoin mining and not HPC or inference looks like?
  Response: Latency is a key constraint for AI, but Bitcoin mining can use Starlink with low bandwidth, allowing expansion into rural areas where fiber infrastructure is not yet available.

• Question from Matthew Glinko (Maxim Group): Maybe just go back over what your North Star is. Is it Bitcoin per share? Given some of the changes we’ve seen across the industry, do you see the opportunity of leaning into equity repurchases, perhaps through the sale of Bitcoin to fund that as a potential opportunity?
  Response: The North Star is increasing Bitcoin per share; the company demonstrated discipline by growing Bitcoin holdings 14% vs. 3% share growth. It has a profitable operating business and can be opportunistic with treasury purchases.

Contradiction Point 1

Network Hash Rate Trend

Contradiction on whether the network hash rate is decreasing or stable/maintained.

Matthew Glinko (Maxim Group) - Matthew Glinko (Maxim Group)

2026Q2: The network hash rate has been stable or decreasing, partly due to peers pivoting to AI data centers... - Mike Ho(COO)

How do you view the network hash rate and miners' responsiveness to price changes, and what are your expectations as we approach the halving? - Benjamin Sommers (BTIG)

2026Q1: The network difficulty dropped due to public miners shifting to AI. U.S. public miners... moved hundreds of megawatts of computing power toward AI GPUs. This reallocation is durable as the infrastructure is not easily repurposed for Bitcoin mining, leading to a ~10% decline in network difficulty. - Mike(COO)

Contradiction Point 2

Primary Driver of Network Difficulty Decline

Contradiction on whether the drop in network difficulty is due to miners shifting to AI or other factors.

Matthew Glinko (Maxim Group) - Matthew Glinko (Maxim Group)

2026Q2: The network hash rate has been stable or decreasing, partly due to peers pivoting to AI data centers, which are long-term commitments. - Mike Ho(COO)

What is your view on the network hash rate, miner responsiveness to price changes, and expectations as we approach the halving? - Benjamin Sommers (BTIG)

2026Q1: The network difficulty dropped due to public miners shifting to AI. U.S. public miners, representing about one-third of the total network hash rate, moved hundreds of megawatts of computing power (equivalent to tens of exahash) toward AI GPUs. - Mike(COO)

Contradiction Point 3

Future Growth Strategy and Capital Allocation

Shift from opportunistic, asset-light growth to a focus on operational scale and site-specific expansion.

Greg Lewis (BTIG) - Greg Lewis (BTIG)

2026Q2: The company continues to look for competitive sites and will update in future quarters. - Mike Ho(CEO)

What are the plans for scaling self-mining operations over the next 12 to 24 months? - Brian Dobson (Clear Street)

2025Q4: They will pursue mining opportunities... but only if they result in more Bitcoin than simply buying it outright. - Mike Ho(CEO), Eric Trump(CSO)

Contradiction Point 4

Nature of Competitive Landscape and Industry Shifts

Contradiction on whether peers are permanently exiting or just pivoting, affecting long-term hash rate outlook.

Matthew Glinko (Maxim Group) - Matthew Glinko (Maxim Group)

2026Q2: This is a permanent shift as those machines typically come off the network and do not return. - Mike Ho(CEO)

How has the network hash rate and miner responsiveness to price changes evolved, and what are your expectations as we approach the halving? - Brian Dobson (Clear Street)

2025Q4: The company's unique three-layer architecture... provides a durable advantage. - Mike Ho(CEO), Eric Trump(CSO)

Contradiction Point 5

Site Selection and Infrastructure Strategy

Contradiction on the strategic advantage of mining sites regarding grid support and operational flexibility.

Matthew Glinko (Maxim Group) - Matthew Glinko (Maxim Group)

2026Q2: Latency is a constraint for AI, requiring fiber that takes time to build in rural areas. Bitcoin mining can use Starlink, making it location-agnostic. - Mike Ho(CEO)

What is the company's pipeline for sites dedicated to Bitcoin mining versus AI? - Brian Dobson (Clear Street)

2025Q3: Bitcoin mining provides a curtailable load, meaning it can consume low-cost power and support the grid during peak demand by load shedding. This is a key advantage over AI data centers which cannot do this. The company’s site in Vega, Texas, exemplifies this with a load profile that supports the local utility grid. - Asher Genoot(CEO)