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Trump family-backed American Bitcoin's costs dropped 23% in Q1 as mining industry pivots to AI
TL;DR
American Bitcoin's mining costs dropped 23% in Q1 2026, falling to $36,200 per bitcoin. This is significantly lower than the industry average of $80,000, indicating profitability amid rising competition from AI.
Key points
- American Bitcoin's cost per bitcoin fell to $36,200 in Q1 2026
- This represents a 23% decrease from $46,900 in Q4 2025
- The industry average cost is around $80,000 per bitcoin
- The company increased its computing power to 28.1 exahash
- The Drumheller site in Alberta contributed significantly to production
Mentioned in this story
American BitcoinDrumhellerAlberta
The Trump brothers' bitcoin mining venture cut its cost per coin by nearly a quarter in three months, going against industry trends.
American Bitcoin (ABTC) said in a Wednesday filing that its cost to mine one bitcoin fell to roughly $36,200 in the first quarter, a 23% drop from $46,900 in Q4 2025.
That puts it materially below the publicly listed miner average of around $80,000 per bitcoin in late 2025, as CoinDesk reported, and inside the band where mining at current bitcoin prices remains genuinely profitable rather than a managed loss.
The improvement came from spreading higher production volume across a stable fixed-cost base, plus what management called "continued energy pricing discipline."
The Drumheller site in Alberta, which was switched on and began running miners in late March, added roughly 3.05 exahash of computing power, a measure of how many guesses per second the mining hardware can make to find new bitcoin. Total fleet capacity hit 28.1 exahash by quarter-end, with around 89,000 mining machines running.
As such, American Bitcoin posted an $81.8 million net loss for the quarter, with most of that driven by mark-to-market accounting on its bitcoin holdings as the price dropped roughly 22% over the period.
Revenue came in at $62.1 million versus $78.3 million in Q4 2025, reflecting a lower average revenue per coin mined of $76,000 versus $100,000.
Strip out the non-cash bitcoin revaluation, however, and the underlying mining business was profitable. The company added 1,620 bitcoin to its strategic reserve in the quarter, taking its holdings to roughly 7,021 BTC, a 30% increase in three months.
Of that, 817 came from mining and 803 from open-market treasury purchases. American Bitcoin is now the 16th largest publicly traded bitcoin holder globally.
What makes the quarter notable structurally is the contrast with the rest of the cohort. Public miners have collectively pivoted toward AI and high-performance computing, signing more than $70 billion in cumulative contracts and reducing their bitcoin treasuries by over 15,000 BTC since late 2024 to fund the transition.
ABTC shares were down about 1% in after-hours trading and remain nearly 90% below their September 2025 listing peak of around $1.25.
Q&A
What caused American Bitcoin's mining costs to drop in Q1 2026?
The drop in costs was attributed to higher production volume and energy pricing discipline.
How does American Bitcoin's cost per bitcoin compare to industry averages?
American Bitcoin's cost of $36,200 is well below the industry average of around $80,000 per bitcoin.
What is the total computing power of American Bitcoin's mining fleet?
American Bitcoin's total fleet capacity reached 28.1 exahash by the end of Q1 2026.
