American Bitcoin, the Nasdaq-listed Bitcoin miner co-founded by Eric Trump, grew its BTC reserve 14% to 8,002 BTC in Q2, although more than a third of those coins is tied up in equipment deals, The Coinformer found.
- The company's quarterly SEC filing shows that 3,090 BTC, or about 39% of the reported reserve, was pledged to Bitmain, a maker of specialized BTC mining computers.
- Those coins were worth nearly $185 million on June 30, leaving 4,912 BTC worth roughly $294 million in custody.
Nearly four in 10 BTC are restricted
The pledged Bitcoin hasn't been sold and remains on American Bitcoin's balance sheet because the company retains redemption rights and remains exposed to changes in its value.
The filing nevertheless classifies it as restricted because Bitmain holds the coins under agreements covering more than 28,500 Bitcoin mining machines.
American Bitcoin can recover them by paying cash at contractually agreed prices during redemption periods lasting about 24 months.
- Otherwise, the coins are applied toward the equipment purchases. The company reported a corresponding miner purchase liability of more than $371 million.
Record production, another loss
American Bitcoin mined a record 932 BTC during the quarter, up from 817 in Q1, while buying another $4 million of BTC. Revenue rose to $67 million from $62 million quarter over quarter, while direct mining costs reached $34 million.
The company still posted a more than $57 million quarterly loss, mainly because Bitcoin's decline generated a $71 million accounting loss on its holdings.
As American Bitcoin CEO Mike Ho argued in the company's earnings release, the company generates Bitcoin "through scaled infrastructure rather than simply holding it on a balance sheet."