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

American Bitcoin (NASDAQ:ABTC) posted its earnings results on Wednesday. The company reported $1.73 EPS 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 Price Performance

Shares of ABTC stock traded down $0.37 on Wednesday, hitting $6.24. 1,351,299 shares of the stock traded hands, compared to its average volume of 1,179,626. The firm has a 50 day simple moving average of $8.27 and a two-hundred day simple moving average of $12.48. American Bitcoin has a 52 week low of $4.92 and a 52 week high of $80.35. The firm has a market cap of $454.40 million, a price-to-earnings ratio of -2.05 and a beta of 4.09.

Analysts Set New Price Targets

A number of equities analysts have recently commented on ABTC shares. Wall Street Zen lowered shares of American Bitcoin from a “hold” rating to a “sell” rating in a report on Saturday, August 8th. Zacks Research raised shares of American Bitcoin to a “hold” rating in a research report on Tuesday, October 13th. Maxim Group set a $16.00 target price on American Bitcoin and gave the company a “buy” rating in a research note on Monday, October 12th. Weiss Ratings reissued a “sell (d)” rating on shares of American Bitcoin in a research note on Monday, September 21st. Finally, BTIG Research began coverage on American Bitcoin in a research note on Wednesday, September 16th. They issued a “buy” rating and a $15.00 target price on the stock. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $28.25.

Insider Buying and Selling

In other news, Director Justin Mateen purchased 162,438 shares of the company’s stock in a transaction that occurred on Thursday, August 6th. The stock was bought at an average cost of $6.19 per share, with a total value of $1,005,491.22. Following the completion of the purchase, the director owned 492,297 shares in the company, valued at approximately $3,047,318.43. This represents a 49.24% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. 2.57% of the stock is currently owned by insiders.

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.