Key Takeaways
- American Bitcoin, tied to the Trump sons, mines BTC at rock-bottom costs with gross margins hovering around 50%.
- Launched in March 2025 by Eric Trump and Donald Trump Jr., the company went public in September 2025 via a reverse merger, focusing on low-cost mining and building a large Bitcoin treasury.
- Despite strong mining economics, the company still posted major losses on paper, including a $153 million net loss in 2025, largely driven by non-cash accounting hits tied to Bitcoin price swings.
American Bitcoin Corp., the Bitcoin mining and treasury firm tied to President Donald Trump’s sons, has carved out a surprising edge in one of crypto’s most competitive sectors.
At a time when many Bitcoin miners are battling soaring energy costs and shrinking margins, the Trump family-backed operation says it can produce Bitcoin at a steep discount to market prices — in some cases, for nearly half the cost of buying BTC outright.
But while the operational story looks impressive, the accounting side tells a far messier tale.
How American Bitcoin Mines BTC So Cheaply
Dual Strategy
American Bitcoin’s edge comes down to one thing: efficiency.
The company isn’t just mining Bitcoin.
It’s aggressively building a BTC treasury through a dual strategy of low-cost production and strategic market purchases, while holding onto much of the Bitcoin it acquires.
That strategy paid off in Q4 2025, when American Bitcoin reported a 53% gross margin on mining operations.
In simple terms, it was effectively acquiring Bitcoin at a 53% discount to prevailing spot prices.
For the full year, margins stayed close to 50%.
CEO Mike Ho summed up the strategy bluntly: the company believes it can mine Bitcoin more cheaply than many competitors can buy it on the open market.
A major part of that advantage comes from scale and hardware efficiency.
By the end of 2025, the company operated roughly 78,000 ASIC miners generating around 25 EH/s of hash rate at an average efficiency of 16.3 J/TH.
American Bitcoin ramped up aggressively throughout 2025, more than doubling production during some quarters.
Between Q2 and year-end, it mined 1,654 BTC, including 783 BTC in Q4 alone.
Cheap Power
The other big advantage? Cheap power.
Through an exclusive partnership with Hut 8 Corp., American Bitcoin gets access to lower-cost energy infrastructure across facilities in Niagara Falls, New York; Medicine Hat, Alberta; and Orla, Texas.
That matters because electricity remains the single largest expense for Bitcoin miners.
Tight Spending
The company also tightened spending elsewhere. General and administrative costs dropped to 9% of revenue in Q4, down from 13% in Q3.
By early 2026, American Bitcoin’s treasury had grown to more than 6,000 BTC, with roughly one-third from mining and the rest from market purchases.
That “mine cheap, hold more” strategy briefly translated into bottom-line profitability.
In Q3 2025, the company posted $64.2 million in revenue, 56% gross margins, and $3.5 million in net income.
Q4 revenue climbed even further, jumping 22% to $78.3 million despite broader crypto market weakness.
Analysts say miners with modern hardware and power costs below roughly $0.05–0.06/kWh are among the few operators positioned to thrive post-halving.
American Bitcoin appears to fall into that category, giving it a better shot at weathering Bitcoin volatility than miners dependent on constantly selling BTC to survive.
Why the Company Still Lost Millions
Despite strong operating margins, American Bitcoin swung back into the red by late 2025 — a trend The Wall Street Journal highlighted prominently in its coverage.
In its Feb. 26, 2026, report on the company’s earnings, the WSJ noted a $59 million net loss in Q4, reversing the prior quarter’s $3.5 million profit, even as revenue climbed to $78 million.
For the full year, American Bitcoin posted a $153 million net loss on $185 million in revenue.
The biggest reason wasn’t weak mining performance. It was accounting.
The company recorded a massive $227 million non-cash mark-to-market loss tied to its Bitcoin holdings under FASB fair-value accounting rules after BTC prices weakened.
In other words, the company’s Bitcoin stack lost value on paper, even though those losses weren’t necessarily realized through sales.
The WSJ also emphasized the Trump family connection, noting Eric Trump and Donald Trump Jr. together hold roughly a 20% stake in the company as part of the family’s broader crypto push.
Shares, which had already fallen sharply after the company’s volatile September 2025 public debut, only managed a modest 3% bounce following the earnings release.
Critics argue the company’s core mining business may be strong, but its long-term profitability remains highly exposed to Bitcoin price cycles and accounting volatility.
American Bitcoin, meanwhile, insists its strategy is about long-term BTC accumulation rather than short-term quarterly earnings swings.
The Trump Family’s Bitcoin Mining Bet
American Bitcoin launched in March 2025 when Eric Trump and Donald Trump Jr. partnered with Hut8 to create a dedicated Bitcoin mining and treasury operation.
The company evolved out of American Data Centers, a Trump-backed venture that was folded into the new entity.
Under the structure, Hut 8 took an 80% ownership stake, while the Trump family and related affiliates retained roughly 20%.
Eric Trump serves as co-founder and Chief Strategy Officer, repeatedly framing the company’s mission around accumulating Bitcoin “at scale” while strengthening US leadership in the mining sector.
Donald Trump Jr. remains a major shareholder.
One unusual aspect of the business is its operational lean.
American Bitcoin reportedly has just five employees, outsourcing much of its infrastructure and technical operations to Hut8.
The company went public in September 2025 through a reverse merger with Nasdaq-listed Gryphon Digital Mining.
The stock saw massive volatility early on, initially surging on Trump-family hype before cooling alongside broader crypto market weakness.
Still, the listing gave American Bitcoin immediate access to public capital markets, helping fund both mining expansion and additional Bitcoin purchases.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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