American Bitcoin (NASDAQ:ABTC) Posts Quarterly Earnings Results, Misses Expectations By $1.13 EPS

American Bitcoin (NASDAQ:ABTC) announced its quarterly earnings data on Wednesday. The company reported $1.73 earnings per share for the quarter, missing the consensus estimate of $2.86 by ($1.13), Zacks reports. American Bitcoin had a negative return on equity of 29.89% and a negative net margin of 71.75%.

Here are the key takeaways from American Bitcoin’s conference call:

• Mining economics weakened quarter over quarter: American Bitcoin mined 891 BTC versus 932 in Q2, while revenue fell about 5% and gross margin declined to 41% from 49%. The company attributed higher costs per Bitcoin primarily to seasonal energy prices.
• Reported earnings were boosted by Bitcoin’s price appreciation: Net income was about $126 million, but results included $197.3 million in non-cash digital-asset gains; management cautioned that mark-to-market changes can drive significant swings in reported earnings.
• The Bitcoin reserve and Bitcoin per share grew: The company ended September with 8,427 BTC and reported a 5% quarterly increase in Satoshis Per Share. It said the reserve additions came from mining, with no ATM share issuance or open-market Bitcoin purchases during the quarter.
• Energy and capital decisions remain key constraints: The company sold about 465 BTC to cover operating costs and said fleet expansion depends on mining returns, equipment costs, and power-market conditions. Executives also noted that AI and data-center demand is competing for electricity and that some peers are shifting mining capacity toward those uses.

American Bitcoin Stock Down 5.6%

ABTC traded down $0.37 during trading hours on Wednesday, hitting $6.24. The stock had a trading volume of 1,350,758 shares, compared to its average volume of 1,179,533. The stock has a market cap of $454.40 million, a PE ratio of -2.05 and a beta of 4.09. American Bitcoin has a 1 year low of $4.92 and a 1 year high of $80.35. The company’s fifty day simple moving average is $8.27 and its 200 day simple moving average is $12.48.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on ABTC shares. BTIG Research initiated coverage on American Bitcoin in a research report on Wednesday, September 16th. They issued a “buy” rating and a $15.00 target price for the company. HC Wainwright began coverage on shares of American Bitcoin in a research note on Monday, October 12th. They issued a “buy” rating and a $22.00 target price on the stock. Zacks Research raised shares of American Bitcoin to a “hold” rating in a report on Tuesday, October 13th. Wall Street Zen lowered American Bitcoin from a “hold” rating to a “sell” rating in a research note on Saturday, August 8th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of American Bitcoin in a research report on Monday, September 21st. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $28.25.

Insider Buying and Selling at American Bitcoin

In other news, Director Justin Mateen bought 162,438 shares of the company’s stock in a transaction that occurred on Thursday, August 6th. The stock was bought at an average price of $6.19 per share, for a total transaction of $1,005,491.22. Following the transaction, the director directly owned 492,297 shares of the company’s stock, valued at $3,047,318.43. This represents a 49.24% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 2.57% of the company’s stock.

About American Bitcoin

Gryphon Digital Mining is an innovative venture in the bitcoin space. Gryphon Digital Mining, formerly known as Akerna Corp., is based in DENVER.