American Bitcoin Mining Costs Drop 23% in Q1 as Rivals Chase AI
American Bitcoin mining costs fell sharply in the first quarter of 2026, with the Trump family-backed firm cutting its cost per coin by 23% to approximately $36,200, well under half the industry average of roughly $80,000. That efficiency gap is becoming one of the most striking data points in the crypto mining sector right now.
The company, co-founded by Eric Trump, mined 817 BTC in Q1, its highest quarterly production on record, while maintaining a gross mining margin above 50%. The cost improvement was driven by higher production volume spread across a stable fixed cost base, along with tighter energy pricing discipline.
Revenue for the quarter came in at $62.1 million, a 20.7% decline from Q4 2025, as Bitcoin prices slid roughly 22% over the period, from about $87,500 to $68,200. Management was quick to frame it as a price effect, not an operational one.
The headline number that grabbed attention was the $81.8 million net loss, but much of that was non-cash. CEO Mike Ho stated that strip out the non-cash mark-to-market adjustment on Bitcoin required by FASB, and the underlying business was profitable, and the company did not sell a single coin.
American Bitcoin ended the quarter with a strategic Bitcoin reserve of 7,021 BTC, up from 5,401 at year-end 2025, after mining 817 coins and purchasing an additional 803 BTC through its at-the-market equity program.
What makes these American Bitcoin mining costs especially notable is the contrast with the rest of the industry. Public miners have collectively pivoted toward AI and high-performance computing, signing more than $70 billion in cumulative contracts and reducing their Bitcoin treasuries by over 15,000 BTC since late 2024 to fund the transition. American Bitcoin is going the other direction.
Eric Trump was direct on the earnings call: “We are doubling down on our focus on Bitcoin, not pivoting to AI, as we believe this strategy will deliver long-term value to our shareholders.”
The company recently completed a fleet expansion at its Drumheller, Alberta site, deploying 11,298 new mining rigs purchased from Bitmain, boosting its total fleet to roughly 89,242 ASIC miners with a combined hashrate of 28.1 EH/s.
Despite the operational progress, the stock remains under pressure. ABTC shares are down nearly 90% from their September 2025 listing peak of around $1.25 per share, reflecting investor skepticism around both Bitcoin price volatility and the company’s longer-term execution. Whether its bet against the AI pivot pays off may depend heavily on where Bitcoin trades through the rest of 2026.
