American Bitcoin Corp (ABTC), the publicly traded mining company 20 percent owned by Eric Trump and Donald Trump Jr., reported a $59 million net loss for Q4 2025 and a $153 million loss for the full year, as of February 26, 2026. The stock, which debuted around $9 after its September 2025 IPO, was trading at $1.09 in pre-market, a roughly 90 percent collapse in under nine months.
The numbers tell a story that goes beyond one company. New FASB accounting rules forced ABTC to mark its bitcoin holdings to market, and a 23 percent BTC price decline during Q4 produced a $227 million non-cash write-down that swallowed what was otherwise a functioning mining operation.
A Mining Company That Barely Mines Its Own Bitcoin
The most striking detail in ABTC's filings is the composition of its 6,000-plus bitcoin treasury. Only about 33 percent of those coins came from mining. The remaining 67 percent were acquired through open-market purchases and what the company describes as "strategic transactions."
That ratio inverts the typical pitch of a bitcoin mining company. Miners are supposed to produce BTC at a cost below market price, capturing the spread as profit. When two-thirds of your holdings were bought at market rates, you are less a miner and more a leveraged bitcoin fund with a mining side business.
ABTC did generate a 53 percent gross margin on its mining operations in Q4, which is respectable. But mining margins mean little when the balance sheet is dominated by purchased BTC that then gets marked down under FASB rules.
FASB Fair Value: the Accounting Rule That Changed Everything
Before 2025, companies holding bitcoin used an impairment model. They wrote down BTC when prices fell but could not write it back up until they sold. The asymmetry was brutal: every dip hit the income statement, but rallies stayed invisible.
The new FASB fair value standard, ASC 350-60, fixes that asymmetry by requiring companies to mark crypto assets to their current market price each quarter, recognizing both gains and losses. In a bull market, this is a gift. In Q4 2025, with bitcoin sliding 23 percent, it was a $227 million non-cash hammer to ABTC's books.
The rule affects every public company with material crypto holdings. Strategy (formerly MicroStrategy), which holds 717,000-plus BTC, faces the same quarterly volatility in its reported earnings. The difference is scale: Strategy has years of accumulated gains to buffer one bad quarter. ABTC had its first full year of operations coincide with a price slide.
Revenue Was Not the Problem
ABTC posted $185.2 million in annual revenue, and the mining operation itself was profitable at the gross margin level. The company also raised $150.5 million through a stock offering in Q4, giving it cash to fund operations and acquire more bitcoin.
The $153 million full-year loss is almost entirely a function of the mark-to-market write-down, not operational failure. Strip out the FASB adjustment, and ABTC would have reported a far smaller loss, possibly close to breakeven on an operating basis.
But investors do not get to strip out FASB adjustments. The reported number is the reported number, and a $153 million loss on $185 million in revenue is the kind of ratio that sends a stock to $1.09.
The Trump Family Factor
Eric Trump and Donald Trump Jr. hold a combined 20 percent stake in ABTC. Hut 8 (HUT), a Canadian-listed mining company, is the majority owner and provides much of the operational infrastructure, including access to an 8,500 MW development pipeline and $400 million in total credit facilities.
The Trump connection makes ABTC a lightning rod. The current president has positioned himself as aggressively pro-crypto, signing executive orders, nominating crypto-friendly regulators, and publicly endorsing bitcoin. His sons' mining venture posting a 90 percent stock decline while holding a presidency-adjacent brand creates an optics problem that no earnings call can resolve.
It also raises questions about the business model itself. If a politically connected, well-capitalized mining company with access to Hut 8's infrastructure cannot produce a profit in year one, the economics of standalone mining are tighter than the market assumes.
What This Means for the Broader Mining Sector
ABTC is not alone. The entire bitcoin mining sector has been under pressure since the April 2024 halving cut block rewards from 6.25 BTC to 3.125 BTC. Miners who did not aggressively expand hash rate or diversify into AI/HPC hosting have seen margins compress.
The hash ribbon recovery signal that flashed earlier this month suggested the worst of the mining capitulation was ending. But ABTC's results show that even miners who survived are carrying deep scars on their balance sheets.
For crypto holders more broadly, the FASB mark-to-market dynamic matters. Any company that holds bitcoin, whether a miner, an exchange, or a card issuer, now reports quarterly P&L swings that track BTC price. That creates incentive structures: hold BTC and accept earnings volatility, or spend and convert to fiat quickly. The companies that bridge both worlds, allowing users to earn crypto rewards and spend them without sitting on unrealized positions for quarters, avoid the FASB trap entirely.
The $1.09 Stock and What Comes Next
ABTC at $1.09 is penny stock territory. The September 2025 IPO priced into a bitcoin market that was trading significantly higher, and every assumption baked into that valuation has since deteriorated. The company has cash from its Q4 stock offering, so a near-term liquidity crisis is unlikely. But the path back to $9 requires either a sustained bitcoin rally or a fundamental restructuring of how the company acquires and holds BTC.
Hut 8, as majority owner, has the infrastructure and capital access to stabilize the operation. The 8,500 MW development pipeline and $400 million in credit facilities suggest this is not a company that will quietly fold. The question is whether ABTC can generate enough mining revenue to offset the balance sheet volatility that comes with holding 6,000-plus BTC under FASB rules.
For investors in any crypto-adjacent public stock, ABTC is a case study in what mark-to-market accounting does to companies whose primary asset swings 20 percent in a quarter. The loss was not operational. It was mathematical. And it will happen again, in either direction, every 90 days.
FAQ
How much did American Bitcoin lose in Q4 2025? ABTC reported a $59 million net loss in Q4 and a $153 million loss for the full year 2025. The bulk of the loss came from a $227 million non-cash mark-to-market write-down on its bitcoin holdings under new FASB accounting rules.
Who owns American Bitcoin? Hut 8 (HUT) is the majority owner. Eric Trump and Donald Trump Jr. hold a combined 20 percent stake. The company went public in September 2025.
Why did ABTC stock drop 90 percent? The stock declined from around $9 at IPO to $1.09 in pre-market trading. The decline reflects the full-year loss, the impact of FASB fair value accounting on its bitcoin holdings, and broader weakness in the mining sector after the April 2024 halving.
What does FASB fair value mean for bitcoin holders? Under ASC 350-60, public companies must mark their crypto holdings to current market prices each quarter. This means unrealized gains and losses flow directly into reported earnings, creating significant quarterly volatility for any company with material bitcoin positions.
Overview
American Bitcoin Corp, the Trump family-linked mining company majority-owned by Hut 8, reported a $59 million Q4 loss and $153 million full-year loss driven by a $227 million FASB mark-to-market write-down. The stock has crashed 90 percent from its September 2025 IPO price to $1.09. Only a third of ABTC's 6,000-plus BTC came from mining, with the rest purchased on the open market. Revenue hit $185.2 million with a 53 percent mining gross margin, but the FASB accounting adjustment overwhelmed operational performance. The result is a case study in how mark-to-market rules amplify bitcoin price volatility on public company balance sheets.
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