Due to Bitcoin price volatility, U.S. Bitcoin faces a $1.17 billion paper loss, while mining costs have decreased by 23% and hashrate capacity has expanded to 28.1 EH/s.
The latest results highlight an increasing trade-off in the cryptocurrency mining sector between operational efficiency and accounting volatility tied to Bitcoin prices.
The primary reason for the reported loss was not operational mismanagement, but rather accounting treatment issues. Due to the decline in Bitcoin's price during the reporting period, the company was required to record an impairment charge of approximately $117 million.
Management stated that this is merely a paper loss and does not reflect the company’s actual operational performance. CEO Mr. He noted that even without these accounting adjustments, the core mining business remains profitable.
The company is actively cutting costs.
Despite negative market reactions, investors are closely monitoring another indicator: a significant improvement in mining efficiency.
Bitcoin.com reduced the cost of mining one bitcoin to approximately $36,200, down from nearly $46,900 in the previous quarter.
This represents a growth of approximately 23% in just three months, making it one of the strongest-performing companies among major listed mining firms.
At the Miami Consensus conference, Eric Trump even stated that the company effectively "bought" Bitcoin at nearly 47% below market price through its own mining operations.
Bitcoin expansion accelerates in the United States
In recent months, Bitmain has actively expanded its infrastructure, leading to record production levels. In March this year, the company completed the installation of over 11,000 new Bitmain machines at its Drumheller facility, bringing its total machine count to nearly 90,000.
Total mining power has surged to 28.1 EH/s, making American Bitcoin one of the largest players in the field.
The company is currently among the top 20 largest corporate Bitcoin holders, with a reserve of approximately 7,300 Bitcoin.
The market remains cautious.
Despite operational growth, the company's stock price fell approximately 7% to 8% after the earnings announcement. Investors reacted negatively to the $62 million in revenue, which fell short of analysts' expectations.
The market remains divided on the company’s aggressive holding strategy. American Bitcoin has not sold mined tokens to raise operating funds, instead continuing to actively accumulate its reserves.
In the first quarter alone, the company purchased an additional 803 bitcoins, nearly matching the amount mined during the same period.
Miners are becoming increasingly like Bitcoin funds.
The strategy for Bitcoin in the United States has begun to closely resemble MicroStrategy’s model—leveraging corporate structures to accumulate the maximum amount of Bitcoin rather than focusing on short-term profitability.
Management emphasized, "Today, each share of U.S. Bitcoin stock holds more Bitcoin than it did three months ago."
This shift indicates that large mining companies are evolving from purely infrastructure providers into hybrid entities that combine energy operations, investment funds, and public cryptocurrency reserves.
However, for investors, the risk remains clear: as long as Bitcoin's price determines reserve value, accounting standards can turn a well-performing quarter into a massive loss.