American Bitcoin Corp (ABTC) 2025 Q4 法說會逐字稿

Good morning and welcome to American Bitcoin's 4th quarter and full year 2025 financial results conference call. (Operator Instruction) I'll turn the call over to Eric Trump, co-founder and Chief Strategy Officer of American Bitcoin.

Good morning, everybody, and welcome back. We launched American Bitcoin on March 31st, 2025. We went public on September 3rd, just over five months later. We held our first earnings call on November 14th, and the praise that came out of that call, really the praise and the flame was truly incredibly special.

And today, only 5 months and 23 days since ABTC went public, not even a year since we lost the company. We are fast becoming the leader in the Bitcoin world, and I truly think we have the greatest brand of all. I would argue that not a single company in the space has grown their public Bitcoin treasury rankings faster.

Today, with over 6,000 Bitcoin on the balance sheet, we are the 17th largest public Bitcoin accumulator on Earth. The pace of what the team has built is something that I'm incredibly proud of. On our last call, I talked about two races in this space, the race to accumulate the most Bitcoin and the race to accumulate the most Bitcoin at the lowest cost. 3 months later, that conviction has only gotten stronger.

We're delivering strong sequential growth this quarter. We continue to mine Bitcoin at a structural discounted spot. And we meaningfully expanded our reserve. Mike will take you through those numbers in details. What I want people to understand about American Bitcoin is incredibly straightforward. We are focused on building the most efficient way to compound Bitcoin ownership through the public equity markets. We mine Bitcoin cheaper than you can buy it.

We hold it and we grow ownership of Bitcoin over time. Very few companies, if any, have the structural advantage. And despite volatility in the digital asset market, we are one of the only companies who can sustain a tremendous, meaningful margin based on our low-cost mining and incredibly efficient SG&A.

There's a lot of noise in this industry, yet we stay focused. We maintain a highly disciplined cost structure, and we remain committed to building something durable, not something that gets attention for a quarter and then fades. We are growing American Bitcoin to be the strongest and most respected company in its class. The world is still very early to cryptocurrency, but that's our distinct advantage. Institutional adoption is barely getting started.

Every day another bank in the country is announcing the ability to custody digital assets, and Bitcoin is leading that race. We've seen the announcements from Chase, from Charles Schwab, Fidelity, BlackRock, and countless others, and the list goes on and on. And that's before ETFs and incredible forward-looking legislation and adoption by other major markets, countries, and populations all over the world.

The infrastructure layer of this asset class is where generational value gets created, and we're building it right here in North America, anchored in the United States in the great state of Texas, powered primarily by great American energy and supported by our great American infrastructure. I want to thank our shareholders for their incredible confidence in this team. I want to recognize Mike, Asher, Matt, and everybody at American Bitcoin. There is no team more committed to growth, and there is no team who will work harder for all of you. Mike will walk you through how this strategy translates into results this quarter. We appreciate you all being on. Mike, go ahead.

Thanks, Eric, and good morning, everyone. I want to take a few minutes to walk through not just what happened this quarter or this year, but how we think about this business and where we're taking it. The numbers matter and I will get to them, but I want to start with the architecture because the architecture is what makes the numbers durable.

American Bitcoin launched in March 2025, went public through completing our reverse merger with Griffin Digital Mining in September, held our first earnings call in November, and as of year end, held approximately 5,400 Bitcoin in reserve. Likewise, our Satoshi's first share stood at 554 at the end of the fourth quarter, up from 371 at the end of the third quarter. That is a 49% increase in a single quarter.

Our focus is on building the Bitcoin reserve over time and enhancing per-share exposure alongside it. Those results reflect the iterated layers of our business model. I will walk through each, cover our financial results, and then share where we are headed. The foundation of American Bitcoin is industrial scale Bitcoin mining anchored in the United States and powered primarily by American energy.

Installed capacity at year end was approximately twenty-five Exa per second with fleet efficiency of approximately 16.3 joules per taharah. During the fourth quarter, we mined 783 Bitcoin, bringing production since ABTC's launch to approximately 1,654 Bitcoin. Approximately one-third of our total Bitcoin reserve has been accumulated directly through mining. That is not incidental. Mining produces Bitcoin at a structural discount to what it would cost to acquire on the open market, and that discount is the economic engine of this business.

We decrease our cost of revenue per Bitcoin mine to approximately $46.9,000 in the fourth quarter compared to approximately $50.2,000 in the third quarter. We added no net new hash rate in the 4th quarter by design. The focus was optimization. Stabilizing machines from the 3rd quarter rep, tuning fleet performance, and managing intelligent curtailment around ERPOT Energy pricing signals.

A similar stabilization dynamic occurred between the 2nd and the 3rd quarter when margins improved as more efficient machines came online and earlier capacity normalized. That step change was tied to that specific deployment cycle and should not be viewed as a recurring pattern. The HA partnership is central to this layer. Our primary facility at Vega draws 205 megawatts from the ERCOT grid and an adjacent wind farm, with directly chipped liquid cooling supporting up to 180 kilowatts per rack. It is purpose built for high density Bitcoin computes.

HU8 invests in the infrastructure stack. American Bitcoin invests in Aix and Bitcoin. That separation of capital responsibilities is designed to align incentives and support efficient scaling over time. Our objective with mining is to produce Bitcoin below market costs. In turn, our objective with the treasury is to further grow that Bitcoin position. Together they form what we call our dual accumulation model.

As of December 31st, we held 5,401 Bitcoin in reserve, up from 3,418 at the end of the third quarter. We accumulate it through mining production as well as at market purchases and strategic transactions. The mix of our total reserve is roughly one-third bid, 2/3 purchased. The result is a reserve built through both operational output and balance sheet activity. As of year end, we have raised approximately $240 million in gross proceeds under our at the market program, or about 11% of total capacity.

That disciplined utilization is intentional. We deploy capital when we believe it strengthens for sure Bitcoin ownership. Unlike pure Treasury vehicles that accumulate at spot, our model first produces Bitcoin at a structural discount and then expands the position through Treasury activity. As Bitcoin matures as an institutional asset class, we believe there is significant value in becoming an institutional grade interface to Bitcoin, a platform that combines production economics, treasury scale, and operational credibility.

We remain focused on Bitcoin. We're not pursuing business lines that would dilute that focus. The companies that earn durable premiums are the ones that clearly define their mandate and execute against it consistently. We intend to be one of those companies. As we scale, we are continuing to build the operational depth and the internal systems necessary to support a larger platform, ensuring our structure evolves alongside the business.

This quarter was defined by execution. In a volatile Bitcoin price environment, we expanded revenue and preserved balance sheet strength without compromising our long-term strategy. As a reminder, prior to March 31, 2025, American Bitcoin's operations were reported as the Bitcoin mining subsegment of Hut 8's compute segment. On March 31, 2025, Hut A contributed substantially all of its Bitcoin miners to American Data Centers Inc. Which was subsequently renamed American Bitcoin Corp.

On September 3, 2025, American Bitcoin completed a stock for stock merger with Griffin Digital Mining Inc. And was deemed the accounting enquirer. As a result, financial results for periods prior to March 30th, 2025, reflect operations as part of HUD 8 and are not directly comparable to stand-alone periods. With that context, let me turn to our financial results.

Revenue for the fourth quarter was $78.3 million up 22% sequentially from $64.2 million in the third quarter, and full year revenue was $185.2 million. While revenue provides scale context. We focus more closely on margin profile, production efficiency, and reserve growth as the primary indicators of performance. Against that backdrop, margins provide a clearer view of underlying operating performance.

Cost of revenue for the fourth quarter was $36.7 million up from $28.3 million in the third quarter. Overall cost of revenue for the 12 months ended December 31, 2025, was $92 million. Gross margin was approximately 53% in the fourth quarter, compared to 56% in the 3rd quarter, and approximately 50% for the year overall. Gross margin was 49% in the second quarter before improving to 56% in the third quarter as earlier capacity stabilized. During the 4th quarter, the price of Bitcoin declined approximately 23%, resulting in a non-cash fair value adjustment reflected separately on the income statement.

That adjustment did not affect gross margin, which continued to reflect the operating economics of the mining business. Stepping back, the 4th quarter results reflect a business that maintained operating discipline and margin integrity despite volatility in Bitcoin's market price. G&A was $7.3 million in the fourth quarter, down from $8.1 million in the third quarter. For the full year 2025, G&A totaled $33.4 million. As a percentage of revenue, G&A declined to approximately 9% in the fourth quarter from 13% in the third quarter.

Revenue grew 22% while G&A dollars declined. That is operating leverage. Turning to the bottom line, net income or loss reflects the impact of non-cash fair value accounting adjustments during the quarter. Under current accounting standards. Changes in the market price of Bitcoin between quarter end dates flow through the income statement as a fair value adjustment. Therefore, net loss for the fourth quarter was $59.5 million driven primarily by a $112.2 million non-cash loss on digital assets.

Net loss for the 12 months ended December 31st, 2025, was $153.2 million. To be clear, this is not a cash event. We did not sell Bitcoin. Operationally. The business generated positive contribution before those non-cash accounting effects, and the underlying mining and treasury economics remained healthy throughout the quarter. Adjusted EBITA was $-77.6 million for the fourth quarter and $-157.3 million for the full year. Those figures include the impact of non-cash digital asset fair value adjustments.

Looking ahead, our priorities are clear. We continue to focus on optimizing fleet efficiency. Improvements in joules per taharah can enhance Bitcoin production economics and support margin performance over time. We remain focused on discipline, capacity expansion. We have access to additional capacity and to next generation AI technology. We will deploy when we believe the investment returns more Bitcoin over its useful life than it costs in Bitcoin terms.

We would rather be right than be first. We continue to compound the reserve through mining and strategic purchases, and we continue to reinforce the three layer architecture. Layer 1 provides production economics, layer 2 compounds the position. Layer 3 positions this company to the next phase of institutional adoption. Each layer strengthens the others. This company launched less than a year ago. In that time, we believe we have built a revenue model that scales, a reserve that compounds, a margin profile that held through a meaningful decline in Bitcoin, and an organizational foundation that is ready for the next phase.

We have done it with a lean cost structure and a clear framework for how we allocate every dollar. The majority of our operations are anchored in the United States, powered predominantly by American energy, and built in communities that benefit from our presence. We're focused on Bitcoin, we're focused on execution, and we are building something durable. I want to thank our shareholders, our partners at Hot 88, and the entire American Bitcoin team. Operator, we will now open the line for questions.

To ask a question, simply press star one on your telephone keypad. (Operator Instruction) And our first question for Roth Capital is from the line of Darren Aftahi Please go ahead.

Guys, can you hear me, okay? Yeah, we hear you. Great, congrats on the progress. Nice to see a really nice, cost for Bitcoin number. A couple of things, can you just speak to, in light of kind of the movement in the price of Bitcoin, just the dual fold strategy of acquiring in the market versus, procuring more power, and I think I kind of heard you say, maybe hint that there could be some power outside the United States if you went down that route, but just. Any kind of color on what your kind of 2026 initiatives may be. Thank you.

Happy to do so. Good to chat with you again. It hasn't been too long since yesterday. When we look at growth and what being a Bitcoin mining, Bitcoin company means, you have Bitcoin mining, which is the security of the Bitcoin network. Then you have our treasury, which is layer two, which is the liquidity of the Bitcoin network, and 3 is the ecosystem. Bitcoin network and how do we increase adoption and so why we think that American Bitcoin is so well positioned is because we are not reliant on a singular strategy. I think when you look at kind of a lot of the headwinds that Treasury companies have faced is because if you're not trading at a place where there's an ample market to be able to raise money and buy Bitcoin, you're kind of just stuck in waiting.

But if you look at our last quarter, I mean, revenue grew, gross margins continued to hold, SG&A went down as a percentage of revenue, and so from a financial perspective, I think you have one of the strongest quarters of just continuing to compound the foundation that was built in starting the company as we look forward into this year. When markets are more bearish, it's actually the best time to look at opportunities and build because things are a lot cheaper. And so as we look forward in 2026, you'll see us just continue to accumulate Bitcoin, being sensitive and thoughtful to how do we accumulate Bitcoin, taking into account Bitcoin per share, so it's accretive to all the shareholders, and we'll continue to use a multi-pronged strategy that's continuing to increase the security layer of Bitcoin, continuing to.

Ads to liquidity in the markets and potentially looking at ways that we can use the brand that we've built and that Eric has done such a good job of getting a global platform for to see if we can increase adoption of the underlying asset itself with some interesting partnerships that we're looking at and so across the board we don't have a single pronged strategy and in markets like this, it's the best time to build and build the foundation for when the markets rebound and start growing.

Great. One more if I may, obviously there's appreciation aspect of Bitcoin, but anything you're thinking about doing in terms of yield as you build your Bitcoin stack. Thank you.

Sure, I can say it's Matt. Hi there. So, there's a few aspects that we think about for this. So obviously mining is our baseline, means of accumulation, but the layer two and layer 3 are both prongs of our strategy that could help us with the yield aspect of the business. Layer 2 would be more what you would call the traditional finance or Tardif way of approaching yield. This would be through different financial instruments, and my co obviously is spearheading a lot of our capital market strategy with the traditional counter studies. Then there's also the layer 3 options, we've.

The Cambrian explosion of Bitcoin, DAs, decentralized applications, and the overall Bitcoin ecosystem in Q4 and into Q1. So, we're monitoring closely which of those partnerships could be the most accretive to American Bitcoin. Again, we want to pursue a very asset light way of doing this. Our goal is Satoshi per share here, but we believe that there are some partnerships out there that we're looking forward to delving further into in the future that will allow us to generate more yield on the stack above and beyond the mine.

It's important to note. Most of the people sitting on this call speaking today have lived through the cycles of Bitcoin. We see what happens when people kind of overextend, TRY to get too greedy with yield, and so as we look at opportunities to generate yield, the core and most important principle is how do we protect the underlying Bitcoin stack. We believe that shareholders buy a share of American Bitcoin because they want us to. Increase that exposure year over year and increase their ownership of underlying Bitcoin and so any yield strategies we look at will be extremely conservative, having lived through 2022 in the most recent kind of bearish markets.

Yield is great in a period of time when you're receiving it, but not great if it actually puts your underlying Bitcoin and makes and has it being compromised. As we think about yield, different things that we've done historically and will continue to do is use third-party custodians where we're not actually giving up control of the Bitcoin. We're still owning the full control of the cold wallets and so things like that, which is really important for making sure that the actual asset base remains protected even if you're looking at yield generating strategies.

Appreciate it guys thank you.

From Clear Street, our next question comes from the line of Brian Dobson. Please go ahead.

Hey, good morning. Thanks for taking my question. So as you're looking ahead, how do you consider capital allocation between growing the mining business, and call it Bitcoin purchases on the open market, and is there a level where you're favoring one over the other, and how might that thought process change as we approach the next ha?

We're looking at the, so if you look at Bitcoin mining and how that business has grown, we've always taken a really novel approach towards growing Bitcoin mining. Just being able to put cash out by Bitcoin miners that show up in 6 to 12 months isn't the most secretive way to grow. If you look at what American Bitcoin did with Vega, it was actually able to receive a call option and say, look, if Bitcoin is trading at a certain price in terms of hash rate, we can. Step into the machines and be able to generate revenue almost immediately and you saw that happen through the rapid increase of growth rate of ex has over the last year in 2025 with American Bitcoin.

And so when we look into 2026, the core driver is increasing Bitcoin over the long-term. So, any dollar that we spend that is not directly buying Bitcoin, the underwriting principle is that it will increase Bitcoin over the long-term. So, when we think about Bitcoin mining, every dollar we spend today that would go into a minor, our underwriting principles at the end of that period of time when that machine is retired, did we increase the Bitcoin holdings that we otherwise would have gone by just buying Bitcoin? And so overall, as we're thinking about capital allocation. We're still increasing Bitcoin as you see day by day. We're just slowly building day by day, incrementally, and if you look back at the last year, there's been massive movements, and so our perspective is daily dollar cost averaging is a great way to grow.

We believe in Bitcoin in the long-term and when there are right and opportunistic moments where we believe that we can get a stronger. Turn on mining, we will do so, but the core driver is let's increase Bitcoin on the balance sheet. And when it's opportunistic to bring on mining because the machines, we get a good structured deal, we are able to grow that. We have cheap energy costs and we'll do so. And so, I think that's what makes this business so unique is when you looked at kind of the years in Bitcoin mining when you had a lot of Bitcoin miners Chase Xa hash.

Sometimes you chase it at the compromise of underlying economics because that was your only way of growth. Our growth metric is simple increase Bitcoin and increase Bitcoin for sure over the long-term. And so when they are buying opportunities, we will look at those opportunities as a way to increase Bitcoin on the balance sheet faster than just buying Bitcoin itself. And when those opportunities don't exist, we'll just keep on accumulating Bitcoin day by day.

Yeah, thanks. And then from a from a higher level, the debt segment has certainly been under pressure over recent months, and you know your mining business distinguishes you within the segment, I guess as you're as you're looking at peers and competitors who've been under pressure, how do you think that market shakes out over the coming year or so?

Yeah, Brian, it's a great question. I mean, at the end of the day, I think we're very different than all of our competitors, right? I mean, we mine Bitcoin. I just want this number to sink in for everybody. We mine Bitcoin at a 53% discount to spot this quarter, doing so, we increased our Bitcoin holdings by 58% this quarter. We ran a 53% gross margin, right? There's no one else that can do that. In fact, frankly, when, as difficulty rates fell on mining. It allowed us to mine additional Bitcoin each and every single day, right? So, difficulty rates coming down actually helped us while, most of our competitors kind of, went dark.

And so you've got a lot of companies out there that, are kind of flat. They haven't really done anything. They have increased their BTC holdings because they couldn't. This has actually been a tremendously good time for our company because we've been mining more Bitcoin. We've been maintaining our margins, and obviously, the Bitcoin on our balance sheet is growing substantially. There are other benefits. There are other benefits including tax benefits to mining at lower amounts, etc. That we can get into later, but this has been a fantastic period for us.

Excellent, thanks very much.

From the Riley Securities, your next question is from the line of Fedor Chmilev. Please go ahead.

Thank you very much, operator, and good morning, everyone. John, you mentioned that assets tend to be cheap during the bear market, and my question is, are you considering any M&A activity, whether that's acquiring additional size, power capacity, or maybe other strategic assets. Thank you.

Guys, absolutely. Are we considering M&A opportunities? Absolutely. I think we've developed the greatest brand in Bitcoin. I think we have the best name in Bitcoin. I think we have the best story to tell in Bitcoin. Obviously, you see the results today. I would argue that there's not another company that can match what we've done, and I can tell you that there's a lot of people coming out of the woodwork, to partner up with us in some way, shape or form, on a lot of ends, right, on the energy end, obviously on.

On the data end, whether or not we explore those or we stay very pure to just our core, we're doing fantastically well and if there's a great opportunity that's a creative, you better believe we'll run toward it faster than anybody. I mean, I said this in my opening remarks, but we are a company that's less than 6 months old. I mean, we literally got listed on the Nasdaq, less than 6 months ago, in totality, we're less than 1 year old. I mean, we literally formed this company.

Less than a year ago and then, obviously every day you see us climbing that stack. We're now the 17th largest. Public Bitcoin accumulator, and you've probably seen a lot of my tweets go out there, but it feels like every week, we're passing another company and climbing that ladder, and so we're very excited. So, if that means M&A activity, and us acquiring others, us, partnering with others, other, from any standpoint, whether it be that standpoint, whether it be the energy standpoint, whether it be the mining standpoint, I think there's tremendous opportunity for us. We're an incredibly hot brand and incredibly hot company, and I think that's, almost a definite for the future in some capacity.

Thank you. This is helpful. And my follow-up is a few questions on, related to performance. If you can just, Expand on the key drivers behind the gain on derivatives. In the 4th quarter, I see a nice increase quarter to quarter. This is 1. And the second, well, what is your EBWri given Bitcoin price, currently if you can provide color on this. Thank you.

So, as we think about the way that we've been expanding our Bitcoin and our Bitcoin mining, there are scenarios in which we've been able to basically increase the Bitcoin mining without actually outlaying cash and so we're able to receive the upside of Bitcoin appreciation.

Meanwhile being able to compound Bitcoin itself and so that's where you see some of those derivative trades coming in and so we shared this before in some scenarios when we buy the miners we're able to actually use the Bitcoin, lock it in at a mark to market price, be able to take the full upside of that Bitcoin if we wanted to buy it out in 2 years.

With cash and then if Bitcoin goes down, then we can kind of forego that Bitcoin and be able to use that cash to buy Bitcoin at the market price and so that's where you'll see some of the fluctuations on kind of on the derivative side that that reflects some of those transactions that we do in the most secretive way to be able to grow Bitcoin mining rather than just outlaying cash out there. Thank you very much. Continue the best of luck.

From HC Wainwright, your next question comes from the line of Kevin Dede. Please go ahead.

Morning. Asher, Mike, Eric, thanks for having me on the call. This great discount. In mining versus spot, can you elaborate on Your position with BitMine now as that contract stands and how you might tap it and how long that option might last.

As we've been in this space for a long period of time. We have great relations with every major manufacturer in the space. Bitman has been a great partner of ours, but we continue to have conversations with all of the manufacturers and producers of this equipment. And so, at the end of the day, the suppliers know, folks who are close to us know we will optimize for the best deal to do what's best for shareholders. And so we're looking at continued creative and creative structures with Bitmain.

In addition to other manufacturers as well, and the markets are very good, as we mentioned, when there's not a lot of people buying these machines because then we can get really creative and being able to build at a lower cost in a more creative structure and so more to come on that note, but we're continuously looking at ways to grow in a creative ways that are similar to what we've done historically and we'll continue to do things that are new and novel to drive shareholder value and Bitcoin accumulation over the long-term.

Asher, do you see Bit Main building a U3 version of the S-23?

Potentially if we want to go build a large facility, but that's to come. I think right now they have different form factors. Obviously they've rolled out two U factors, 3 U factors, but before American Bitcoin on the Hot 8 side, we really worked with them to create the direct liquid to chip.

Machine that we deployed at Vega and we're using now and so we continue to not only look at being consumers of Bitcoin miners and Ais X scale but also being technological innovation partners with them and being able to help drive where the technology and innovation go as we build the infrastructure.

You mentioned custody giving you some flexibility and yield. Can you speak to specifically who you're custodying with? And what sort of, I guess what dimension of flexibility you have and whether or not you plan on diversifying. Your custody positions?

Yeah, our custody partners are great. We have Anchorage Digital. We have Coinbase, we have Bitco, and so we have some of the largest custody partners out there in the world today. When we talk about yield generation opportunities, what we mean is a lot of times when you need to generate yield, you actually have to send your Bitcoin to that counterparty and then they give you yield. We're not okay with 3 hypothecation.

And so when we look at potential yield generating opportunities, we are able to maintain control of the custody account where the Bitcoin is held, and then we have a trip-party agreement in looking at different yield generating opportunities that we may underwrite. And so that's the key. What we've learned. In this ecosystem as counterparty risk is a bigger risk you take on if you want to generate yield, and we want to always be in control of the keys of our wallets. And so that's what we mean by we are able to control the custody of the actual coins, meanwhile looking at opportunities where we can generate yield on top of them.

Would you mind commenting a little bit on your pool strategy, vis a vis layer, your layer 3. Is there a chance that you might develop your own or design your own obviate, intermediaries there?

We work with partners today and Challenger, for example, is a strong partner of ours. They're a US based pool. We really believe that more and more hash rate should be securitized by the US and so that's obviously a big portion of why we continue to invest in America to be a security backbone of the Bitcoin network. When you look at operating as a pool, ultimately what you're taking is probability and volatility risk and as a business, do we need to add another layer of risk exposure or do we Rather know how many extra hash are we producing and how many Bitcoin is that mine and so we're looking at a variety of opportunities within the third ecosystem layer.

We definitely have pool operators looking to partner into JV, but there's a whole host of opportunities that are much broader that touch a much larger base, and it's adoption around not just Bitcoin mining, but Bitcoin as an asset class itself and figuring out ways we can help be a vehicle and help be an enabler for more adoption of Bitcoin on a. National and global level.

Just add on that, so I think as you look at layer 3, I think building an ecosystem, accelerating Bitcoin adoption, which is one of our North Stars, is a thing where if you wanted to go fast on any of these ventures we could go alone. But if we want to go far as an ecosystem, we have to go together. So, we're always communicating with different partners, building every part of the value chain to TRY and find what the most secretretive way to do that is.

So, as we think about our shareholder base and the folks that we're working on behalf of, we want to make sure that we're doing everything so that they can capture the value that we hope to create within the Bitcoin ecosystem.

Last one, Asher, I promise. How long do we have to wait before we'll know if mining goes into the corpus site?

I like that that's a double-sided question on both sides. American Bitcoin has a lot of interesting opportunities. If you actually look at the portfolio HU 8 has today that's dedicated to mining, I mean, we have about 700 megawatts that's still dedicated to Bitcoin compute. And American Bitcoin is really utilizing only half of that today. And so, there's a lot of opportunity and incremental growth within the existing portfolio that exists, and there's other opportunities as there. Had mentioned that American Bitcoin is looking at from a growth and energy perspective.

And so I mean as you look at American Bitcoin's growth from a mining perspective, there's tons of values of growth, tons of energy opportunities, and it's not one site that allows them to grow. And so, I hope that's that that that kind of gives you clarity on American Bitcoin's potential. In its growth here. Ultimately, at the end of the day, American Bitcoin is not looking at growth for growth's sake.

American Bitcoin is very clearly looking at accumulating Bitcoin over the long-term and that's why all the deals that you see American Bitcoin doing will be a lot more novel and creative in terms of how do we actually structure that that upside and how do we make sure that any Investments that we make that by the time those investments are finished, we actually accumulate more Bitcoin at the end of that rather than just buying it at the market today. I think if you look at a lot of mining historically, probably for many companies buying Bitcoin would have just been a better bet and American Bitcoin was structured and built as a company to fundamentally approach.

Bitcoin accumulation in a very different way. It's not a treasury company. It's not a Bitcoin mining company. It is a multi-pronged Bitcoin company that looks at securitizing the Bitcoin network, adding liquidity to the Bitcoin ecosystem, and increasing adoption of the underlying asset across the world.

Thank you so much, gents for entertaining all my questions. I really appreciate it.

And from BTIG you have a question from Greg Lewis. Please go ahead.

Good morning, everybody and thanks for taking my question. Asher and Mike, I know we've been kind of, we've been talking to this a little bit, but just kind of curious, at a high level, as we think about Bitcoin mining as a business, there, there's definitely been, there's an ongoing changing of the guard, right, where some of the initial leaders are pivoting out. This is a huge opportunity for American Bitcoin as we stand here. I guess a couple of questions around that.

One is just given the fact that Rig production doesn't really stop, right, whether it's Bitmain or Kan or Bit deer we're seeing more or other micro BT others the companies are continuing to produce more mining rigs that looks like it's pressuring rig pricing, and so I guess when you talk about counter being countercyclical, you know. How are you thinking about the opportunity to do rig orders, also, how has the market evolved, just given your position around the ability to do some of that maybe asset financing is that something that we're thinking about if we were to do a bigger rig purchase? I guess I'm curious on those two things.

Hi Greg, you're absolutely right. When it comes to the supply cycle for the manufacturers have to commit to wafer allocations well in advance, throughout the year, and by the time they take delivery, it's usually two quarters behind where they're taking inventory risk, where they're looking through to the.

Environment of where Bitcoin prices and where the demand in the market is. And oftentimes the manufacturers will sit on inventory not reflective of where the current demand or the price of Bitcoin is trading, which is an incredible opportunity for us to be able to look to work strategic deals in real time or inventory that is in supply and can be deployed near immediately.

When we look at how we structure these deals, we're very objective in what we're solving for, and that's ultimately, are we adding more Bitcoin per share? Are we adding more Bitcoin to our balance sheets? Some of the structures we've done in the past is how we can leverage our Bitcoin collateral to use the Bitcoin.

To then purchase the A6, take title of the A6, we benefit from the mining yields from the A6 with the optionality to be able to buy back that Bitcoin should Bitcoin. Appreciate throughout that period of 2 years or longer. So, we maintain both the upside of the Bitcoin appreciation as well as we receive the net min bitcoins from the machine purchases.

And when you look at American Bitcoin, structurally, not only are so many players leaving the market and it's creating a huge open space, but structurally, it is almost impossible for a new company and other companies to compete because of the symbiotic relationship with Hat 8.

Hut 8 loves the demands that it's able to receive from American Bitcoin because it allows Ha8 to develop more sites and be able to de-risk the development risk. But from an American Bitcoin side, you have some of the lowest cost power that you're getting with American with how they managing the infrastructure stack. I mean, some things we haven't even talked about historically is if we think about mining, we went from mining and running 1,000 or 2 machines five years ago to now running hundreds of thousands of machines.

We're using the software we're using is incredible. Not only are we curtailing and we're trading around energy prices, but our team has actually implemented our own internal. AI bots where we're actually able to look at all of the API and data we're getting from every single machine, optimize those people in the field are able to ask their chatbots, where are they seeing areas for efficiency and improvement on the sites. And so here, as Mike mentioned, you have a financial structural advantage because of where we are, who we are, and the demand that we're driving because of the relations we build over such a long period of time.

You have an infrastructural advantage because of the scale of the infrastructure. Structure that HUD is able to provide as a partner, you have a technological advancement because of all of the investments that we've been making in the technology of operating this at a world-class status. And so, what, and lastly, you have some of the lowest SG&A at American Bitcoin and doing all of this together. And so, it's very difficult for others to compete, whether it be the largest miners in the world who now are leaving or new incomers. American Bitcoin was built to be different. It is different and the numbers speak for themselves quarter over quarter.

Thanks guys.

So, guys, I think that's it for the man with questions. Maybe I'll just wrap by saying this. I think one thing that we didn't touch on this call was our SG&A. I come out of the real estate world. You have to be SG&A conscious. If you look at the miners across the sectors, the SG&A costs that they're running, frankly some of them are atrocious. We decreased our SG&A costs roughly 30.77% to 9% SG&A this quarter. Unbelievable. We were at 13%, which was by far the lowest in class, at least that we know of, and many times lower than some of our competitors.

And now we're single digits. We're at 9% SG&A for fourth quarter, and that just speaks to this team. It speaks to how efficiently we're going to run. There's a lot of questions about mining. I mean, we have some of the best energy procurement. Anywhere and that's because of obviously the relationship with HU. They do it as well as anybody. We have unlimited potential in terms of bringing additional mining into this company. Obviously Mike Nasher did a great job speaking to the cost of machines and some of the kind of the novel approaches that we can take to bring more mining online if we choose to do so and if it's creative ultimately to shareholders.

Again, we increased our BTC holdings 58% this quarter. We mined at a 53% discount. And American Bitcoin is absolutely flying, and I can tell you the brand that we've created is something incredibly special. There's nowhere I go that people don't mention American Bitcoin, and so to be able to do this with great friends, some of the smartest people in the world, but to be able to do this in America, largely anchored in the great state of Texas with American energy, with American infrastructure, this is a company that I'm incredibly proud of. This is a company that I've put my heart and soul into. And I can tell you this team is going to continue to make everybody incredibly proud.

So, congratulations on these results, guys. I could not be more proud of everything we've accomplished in such a short time, and we will continue to sprint ahead. So, thank you very much to everybody on this call, and we look forward to speaking to you next quarter.

Thank you for joining us. Thank you again for joining us today. This does conclude today's conference call. You may now disconnect.