Full Year 2025 American Bitcoin Corp Earnings Call

February 26, 2026

Operator: Good morning, welcome to American Bitcoin's Q4 and full year 2025 Financial Results Conference Call. Speaking on today's call are Co-founder and Chief Strategy Officer Eric Trump and Chief Executive Officer Mike Ho. Executive Chairman Asher Genoot and President and Interim Chief Financial Officer Matt Prusak will be available during the question and answer session. Following prepared remarks, we will open the line for questions. This call is being recorded, and a transcript will be made available on American Bitcoin's website. American Bitcoin issued its Q4 and full year 2025 earnings release earlier today, which can be found on the company's website at abtc.com and on the company's EDGAR profile at sec.gov. Certain statements made during this call may constitute forward-looking statements within the meaning of applicable securities law.

Speaker #2: Executive chairman, Asher Gannut, and president and interim chief financial officer, Matt Prusak, will be available during the question-and-answer session. Following prepared remarks, we will open the line for questions.

Speaker #2: This call is being recorded, and a transcript will be made available on American Bitcoin's website. American Bitcoin issued its fourth quarter and full year 2025 earnings release earlier today, which can be found on the company's website at abtc.com and on the company's Edgar profile at sec.gov.

Speaker #2: Certain statements made during this call may constitute forward-looking statements within the meaning of applicable securities law. These statements reflect current expectations and are subject to risks and uncertainties that could cause actual results to differ materially including certain key risks detailed in the company's SEC filings.

Operator: These statements reflect current expectations and are subject to risks and uncertainties that could cause actual results to differ materially, including certain key risks detailed in the company's SEC filings. Except as required by law, the company may undertake no obligation to update or revise any forward-looking statements. During the call, management may reference non-GAAP measures such as adjusted EBITDA. Management believes these metrics, alongside GAAP results, provide valuable insight into the company's performance. Reconciliations of GAAP and non-GAAP results are included in the tables accompanying today's earnings release. With that, I'll turn the call over to Eric Trump, the founder and Chief Strategy Officer of American Bitcoin.

Speaker #2: Except as a result required by law, the company may undertake no obligation to update or revise any forward-looking statements. During the call, management may reference non-GAAP measures such as adjusted EBITDA, management believes these metrics alongside GAAP results provide valuable insight into the company's performance.

Speaker #2: Reconciliations of GAAP and non-GAAP results are included in the tables accompanying today's earnings release. With that, I'll turn the call over to Eric Trump, co-founder and chief strategy officer of American Bitcoin.

Speaker #2: Good morning, everybody, and welcome back. We launched American Bitcoin on March 31st, 2025. We went public on September 3rd, just over five months later.

Eric Trump: Good morning, everybody, welcome back. We launched American Bitcoin on 31 March 2025. We went public on 3 September, just over 5 months later. We held our first earnings call on 14 November, and the praise that came out of that call, really, the praise and acclaim was truly incredibly special. Today, only 5 months and 23 days since ABTC went public, not even a year since we lost the company, we are fast becoming the leader in the Bitcoin world, and I truly think we have the greatest brand of all. I would argue that not a single company in the space has grown their public Bitcoin treasury rankings faster. Today, with over 6,000 Bitcoin on the balance sheet, we are the 17th largest public Bitcoin accumulator on Earth. The pace of what the team has built is something that I'm incredibly proud of.

Speaker #2: We held our first earnings call on November 14th, and the praise that came out of that call really the praise and acclaim was truly incredibly special.

Speaker #2: And today, only five months and 23 days since ABTC went public, not even a year since we lost the company, we are fast becoming the leader in the Bitcoin world, and I truly think we have the greatest brand of all.

Speaker #2: I would argue that not a single company in the space has grown their public Bitcoin treasury rankings faster. Today, with over 6,000 Bitcoin on the balance sheet, we are the 17th largest public Bitcoin accumulator on Earth.

Speaker #2: The pace of what the team has built is something that I'm incredibly proud of. On our last call, I talked about two races in this space.

Eric Trump: On our last call, I talked about two races in this space. The race to accumulate the most Bitcoin and the race to accumulate the most Bitcoin at the lowest cost. Three months later, that conviction has only gotten stronger. We are delivering strong sequential growth this quarter. We continue to mine Bitcoin at a structural discount to spot. We meaningfully expanded our reserve. Mike will take you through those numbers and details. What I want people to understand about American Bitcoin is incredibly straightforward. We are focused on building the most efficient way to compound Bitcoin ownership through the public equity markets. We mine Bitcoin cheaper than you can buy it. We hold it, and we grow ownership of Bitcoin over time.

Speaker #2: The race to accumulate the most Bitcoin and the race to accumulate the most Bitcoin at the lowest cost. Three months later, that conviction has only gotten stronger.

Speaker #2: We are delivering strong sequential growth this quarter. We continue to mine Bitcoin at a structural discount to spot, and we meaningfully expanded our reserve.

Speaker #2: Mike will take you through those numbers and details. What I want people to understand about American Bitcoin is incredibly straightforward. We are focused on building the most efficient way to compound Bitcoin ownership through the public equity markets.

Speaker #2: We mine Bitcoin cheaper than you can buy it. We hold it. And we grow ownership of Bitcoin over time. Very few companies, if any, have this structural advantage.

Eric Trump: Very few companies, if any, have this structural advantage. Despite volatility in the digital asset market, we are one of the only companies who can sustain their tremendous meaningful margin based on our low-cost mining and incredibly efficient SG&A. There's a lot of noise in this industry, yet we stay focused. We maintain a highly disciplined cost structure, and we remain committed to building something durable, not something that gets attention for a quarter and then fades. We are growing American Bitcoin to be the strongest and most respected company in its class. The world is still very early to cryptocurrency. That's our distinct advantage. Institutional adoption is barely getting started. Every day, another bank in the country is announcing the ability to custody digital assets. Bitcoin is leading that race.

Speaker #2: And despite volatility in the digital asset market, we are one of the only companies who can sustain their tremendous meaningful margin based on our low-cost mining and incredibly efficient SGNA.

Speaker #2: There's a lot of noise in this industry, yet we stay focused. We maintain a highly disciplined cost structure. And we remain committed to building something durable, not something that gets attention for a quarter and then fades.

Speaker #2: We are growing American Bitcoin to be the strongest and most respected company in its class. The world is still very early to cryptocurrency, but that's our distinct advantage.

Speaker #2: Institutional adoption is barely getting started. Every day, another bank in the country is announcing the ability to custody digital assets. And Bitcoin is leading that race.

Speaker #2: We've seen the announcements from Chase, from Charles Schwab, Fidelity, BlackRock, and countless others. And the list goes on and on. And that's before ETFs, and incredible forward-looking legislation, and adoption by other major markets, countries, and populations all over the world.

Eric Trump: We've seen the announcements from Chase, from Charles Schwab, Fidelity, BlackRock, and countless others, the list goes on and on. That's before ETFs and incredible forward-looking legislation and adoption by other major markets, countries, and populations all over the world. The infrastructure layer of this asset class is where generational value gets created, we're building it right here in North America, anchored in the United States, in the great state of Texas, powered primarily by great American energy and supported by our great American infrastructure. I want to thank our shareholders for their incredible confidence in this team. I want to recognize Mike, Asher, Matt, and everybody at American Bitcoin. There is no team more committed to growth, there is no team who will work harder for all of you. Mike will walk you through how this strategy translates into results this quarter.

Speaker #2: The infrastructure layer of this asset class is where generational value gets created. And we're building it right here in North America, anchored in the United States, in the great state of Texas, powered primarily by great American energy and supported by our great American infrastructure.

Speaker #2: I want to thank our shareholders for their incredible confidence in this team. I want to recognize Mike Asher, Matt, and everybody at American Bitcoin.

Speaker #2: There is no team more committed to growth, and there is no team who will work harder for all of you. Mike will walk you through how this strategy translates into results this quarter.

Speaker #2: We appreciate you all being on. Mike, go ahead. Thanks, Eric, and good morning, everyone. I want to take a few minutes to walk through not just what happened this quarter or this year, but how we think about this business and where we are taking it.

Eric Trump: We appreciate you all being on. Mike, go ahead.

Matt Prusak: Thanks, Eric. Good morning, everyone. I want to take a few minutes to walk through not just what happened this quarter or this year, but how we think about this business and where we are taking it. The numbers matter, and I will get to them, but I want to start with the architecture, because the architecture is what makes the numbers durable. American Bitcoin launched in March 2025, went public through completing our reverse merger with Gryphon Digital Mining in September, held our first earnings call in November, and as of year-end, held approximately 5,400 Bitcoin in reserve. Likewise, our Satoshis per share stood at 554 at the end of Q4, up from 371 at the end of Q3. That is a 49% increase in a single quarter.

Mike Ho: Thanks, Eric. Good morning, everyone. I want to take a few minutes to walk through not just what happened this quarter or this year, but how we think about this business and where we are taking it. The numbers matter, and I will get to them, but I want to start with the architecture, because the architecture is what makes the numbers durable. American Bitcoin launched in March 2025, went public through completing our reverse merger with Gryphon Digital Mining in September, held our first earnings call in November, and as of year-end, held approximately 5,400 Bitcoin in reserve. Likewise, our Satoshis per share stood at 554 at the end of Q4, up from 371 at the end of Q3. That is a 49% increase in a single quarter.

Speaker #2: The numbers matter, and I will get to them, but I want to start with the architecture because the architecture is what makes the numbers durable.

Speaker #2: American Bitcoin launched in March 2025, went public through completing our reverse merger with Gryphon Digital Mining in September, held our first earnings call in November, and as of year-end, held approximately 5,400 Bitcoin in reserve.

Speaker #2: Likewise, our Satoshi's per share stood at $554 at the end of the fourth quarter, up from $371 at the end of the third quarter.

Speaker #2: That is a 49% increase in a single quarter. Our focus is on building the Bitcoin reserve over time and enhancing per-share exposure alongside it.

Matt Prusak: Our focus is on building the Bitcoin reserve over time and enhancing per share exposure alongside it. Those results reflect the iterated layers of our business model. I will walk through each, cover our financial results, and then share where we are headed. The foundation of American Bitcoin is industrial-scale Bitcoin mining, anchored in the United States and powered primarily by American energy. Installed capacity at year-end was approximately 25 exahash per second, with fleet efficiency of approximately 16.3 joules per terahash. During the Q4, we mined 783 Bitcoin, bringing production since ABTC's launch to approximately 1,654 Bitcoin. Approximately one-third of our total Bitcoin reserve has been accumulated directly through mining. That is not incidental.

Mike Ho: Our focus is on building the Bitcoin reserve over time and enhancing per share exposure alongside it. Those results reflect the iterated layers of our business model. I will walk through each, cover our financial results, and then share where we are headed. The foundation of American Bitcoin is industrial-scale Bitcoin mining, anchored in the United States and powered primarily by American energy. Installed capacity at year-end was approximately 25 exahash per second, with fleet efficiency of approximately 16.3 joules per terahash. During the Q4, we mined 783 Bitcoin, bringing production since ABTC's launch to approximately 1,654 Bitcoin. Approximately one-third of our total Bitcoin reserve has been accumulated directly through mining. That is not incidental.

Speaker #2: Those results reflect the iterated layers of our business model. I will walk through each, cover our financial results, and then share where we are headed.

Speaker #2: The foundation of American Bitcoin is industrial-scale Bitcoin mining, anchored in the United States and powered primarily by American energy. Installed capacity at year-end was approximately 25 exahash per second, with fleet efficiency of approximately 16.3 joules per terahash.

Speaker #2: During the fourth quarter, we mined 783 Bitcoin, bringing production since ABTC's launch to approximately 1,654 Bitcoin. Approximately one-third of our total Bitcoin reserve has been accumulated directly through mining.

Speaker #2: That is not incidental. Mining produces Bitcoin at a structural discount to what it would cost to acquire on the open market. And that discount is the economic engine of this business.

Matt Prusak: Mining produces Bitcoin at a structural discount to what it would cost to acquire on the open market, and that discount is the economic engine of this business. We decreased our cost of revenue per Bitcoin mined to approximately $46.9 thousand in Q4, compared to approximately $50.2 thousand in Q3. We added no net new hash rate in Q4 by design. The focus was optimization, stabilizing machines from the Q3 ramp, tuning fleet performance, and managing intelligent curtailment around ERCOT energy pricing signals. A similar stabilization dynamic occurred between Q2 and Q3, when margins improved as more efficient machines came online and earlier capacity normalized. That step change was tied to that specific deployment cycle and should not be viewed as a recurring pattern. The Hut 8 partnership is central to this layer.

Mike Ho: Mining produces Bitcoin at a structural discount to what it would cost to acquire on the open market, and that discount is the economic engine of this business. We decreased our cost of revenue per Bitcoin mined to approximately $46.9 thousand in Q4, compared to approximately $50.2 thousand in Q3. We added no net new hash rate in Q4 by design. The focus was optimization, stabilizing machines from the Q3 ramp, tuning fleet performance, and managing intelligent curtailment around ERCOT energy pricing signals. A similar stabilization dynamic occurred between Q2 and Q3, when margins improved as more efficient machines came online and earlier capacity normalized. That step change was tied to that specific deployment cycle and should not be viewed as a recurring pattern. The Hut 8 partnership is central to this layer.

Speaker #2: We decrease our cost of revenue per Bitcoin mined to approximately 46.9 thousand dollars in the fourth quarter, compared to approximately 50.2 thousand dollars in the third quarter.

Speaker #2: We added no net new hash rate in the fourth quarter by design. The focus was optimization. Stabilizing machines from the third quarter ramp, tuning fleet performance, and managing intelligent curtailment around ERCOT energy pricing signals.

Speaker #2: A similar stabilization dynamic occurred between the second and the third quarter. When margins improved as more efficient machines came online and earlier capacity normalized.

Speaker #2: That step change was tied to that specific deployment cycle and should not be viewed as a recurring pattern. The HUD8 partnership is central to this layer.

Speaker #2: Our primary facility at Vega draws 205 megawatts from the ERCOT grid and an adjacent wind farm. With directed chip liquid cooling supporting up to 180 kilowatts per rack.

Matt Prusak: Our primary facility at Vega draws 205 megawatts from the ERCOT grid and an adjacent wind farm, with direct-to-chip liquid cooling supporting up to 180 kilowatts per rack. It is purpose-built for high-density Bitcoin computes. Hut 8 invests in the infrastructure stack, American Bitcoin invests in ASICs and Bitcoin. That separation of capital responsibilities is designed to align incentives and support efficient scaling over time. Our objective with mining is to produce Bitcoin below market costs. In turn, our objective with the Treasury is to further grow that Bitcoin position. Together, they form what we call our dual accumulation model. As of 31 December, we held 5,401 Bitcoin in reserve, up from 3,418 at the end of Q3.

Mike Ho: Our primary facility at Vega draws 205 megawatts from the ERCOT grid and an adjacent wind farm, with direct-to-chip liquid cooling supporting up to 180 kilowatts per rack. It is purpose-built for high-density Bitcoin computes. Hut 8 invests in the infrastructure stack, American Bitcoin invests in ASICs and Bitcoin. That separation of capital responsibilities is designed to align incentives and support efficient scaling over time. Our objective with mining is to produce Bitcoin below market costs. In turn, our objective with the Treasury is to further grow that Bitcoin position. Together, they form what we call our dual accumulation model. As of 31 December, we held 5,401 Bitcoin in reserve, up from 3,418 at the end of Q3.

Speaker #2: It is purpose-built for high-density Bitcoin computes. HUD8 invests in the infrastructure stack, American Bitcoin invests in ASICs and Bitcoin. That separation of capital responsibilities is designed to align incentives and support efficient scaling over time.

Speaker #2: Our objective with mining is to produce Bitcoin below market costs. In turn, our objective with the treasury is to further grow that Bitcoin position.

Speaker #2: Together, they form what we call our dual accumulation model. As of December 31st, we held 5,401 Bitcoin in reserve, up from 3,418 at the end of the third quarter.

Speaker #2: We accumulated through mining production as well as at-market purchases and strategic transactions. The mix of our total reserve is roughly one-third mined, two-thirds purchased.

Matt Prusak: We accumulated through mining production as well as at-the-market purchases and strategic transactions. The mix of our total reserve is roughly one-third mined, two-thirds purchased. The result is a reserve built through both operational output and balance sheet activity. As of year-end, we had raised approximately $240 million in gross proceeds under our at-the-market program, or about 11% of total capacity. That disciplined utilization is intentional. We deploy capital when we believe it strengthens for sure Bitcoin ownership. Unlike pure treasury vehicles that accumulate at spot, our model first produces Bitcoin at a structural discount and then expands the position through treasury activity. As Bitcoin matures as an institutional asset class, we believe there is significant value in becoming an institutional-grade interface to Bitcoin, a platform that combines production, economics, treasury scale, and operational credibility. We remain focused on Bitcoin.

Mike Ho: We accumulated through mining production as well as at-the-market purchases and strategic transactions. The mix of our total reserve is roughly one-third mined, two-thirds purchased. The result is a reserve built through both operational output and balance sheet activity. As of year-end, we had raised approximately $240 million in gross proceeds under our at-the-market program, or about 11% of total capacity. That disciplined utilization is intentional. We deploy capital when we believe it strengthens for sure Bitcoin ownership. Unlike pure treasury vehicles that accumulate at spot, our model first produces Bitcoin at a structural discount and then expands the position through treasury activity. As Bitcoin matures as an institutional asset class, we believe there is significant value in becoming an institutional-grade interface to Bitcoin, a platform that combines production, economics, treasury scale, and operational credibility. We remain focused on Bitcoin.

Speaker #2: The result is a reserve built through both operational output and balance sheet activity. As of year-end, we had raised approximately $240 million in gross proceeds under our at-the-market program, or about 11% of total capacity.

Speaker #2: That discipline utilization is intentional. We deploy capital when we believe it strengthens per-share Bitcoin ownership. Unlike pure treasury vehicles that accumulate at spot, our model first produces Bitcoin at a structural discount and then expands the position through treasury activity.

Speaker #2: As Bitcoin matures as an institutional asset class, we believe there is significant value in becoming an institutional-grade interface to Bitcoin. A platform that combines production economics, treasury scale, and operational credibility.

Speaker #2: We remain focused on Bitcoin. We're not pursuing business lines that would dilute that focus. The companies that earn durable premiums are the ones that clearly define their mandate and execute against it consistently.

Matt Prusak: We're not pursuing business lines that would dilute that focus. The companies that earn durable premiums are the ones that clearly define their mandate and execute against it consistently. We intend to be one of those companies. As we scale, we are continuing to build the operational depth and the internal systems necessary to support a larger platform, ensuring our structure evolves alongside the business. This quarter was defined by execution. In a volatile Bitcoin price environment, we expanded revenue and preserved balance sheet strength without compromising our long-term strategy. As a reminder, prior to 31 March 2025, American Bitcoin's operations were reported as the Bitcoin mining sub-segment of Hut 8's compute segment. On 31 March 2025, Hut 8 contributed substantially all of its Bitcoin miners to American Data Centers, Inc., which was subsequently renamed American Bitcoin Corp.

Mike Ho: We're not pursuing business lines that would dilute that focus. The companies that earn durable premiums are the ones that clearly define their mandate and execute against it consistently. We intend to be one of those companies. As we scale, we are continuing to build the operational depth and the internal systems necessary to support a larger platform, ensuring our structure evolves alongside the business. This quarter was defined by execution. In a volatile Bitcoin price environment, we expanded revenue and preserved balance sheet strength without compromising our long-term strategy. As a reminder, prior to 31 March 2025, American Bitcoin's operations were reported as the Bitcoin mining sub-segment of Hut 8's compute segment. On 31 March 2025, Hut 8 contributed substantially all of its Bitcoin miners to American Data Centers, Inc., which was subsequently renamed American Bitcoin Corp.

Speaker #2: We intend to be one of those companies. As we scale, we are continuing to build the operational depth and the internal systems necessary to support a larger platform, ensuring our structure evolves alongside the business.

Speaker #2: This quarter was defined by execution. An evolved-held Bitcoin price environment, we expanded revenue and preserved balance sheet strength without compromising our long-term strategy. As a reminder, prior to March 31, 2025, American Bitcoin's operations were reported as the Bitcoin mining subsegment of HUD8's compute segment.

Speaker #2: On March 31, 2025, HUD8 contributed substantially all of its Bitcoin miners to American data centers, Inc., which was subsequently renamed American Bitcoin Corp. On September 3, 2025, American Bitcoin completed a stock-for-stock merger with Gryphon Digital Mining, Inc., and was deemed the accounting acquirer.

Matt Prusak: On 3 September 2025, American Bitcoin completed a stock-for-stock merger with Gryphon Digital Mining, Inc., and was deemed the accounting acquirer. As a result, financial results for periods prior to 31 March 2025, reflect operations as part of Hut 8 and are not directly comparable to standalone periods. With that context, let me turn to our financial results. Revenue for the Q4 was $78.3 million, up 22% sequentially from $64.2 million in the Q3, and full-year revenue was $185.2 million. While revenue provides scale context, we focus more closely on margin profile, production efficiency, and reserve growth as the primary indicators of performance. Against that backdrop, margins provide a clearer view of underlying operating performance.

Mike Ho: On 3 September 2025, American Bitcoin completed a stock-for-stock merger with Gryphon Digital Mining, Inc., and was deemed the accounting acquirer. As a result, financial results for periods prior to 31 March 2025, reflect operations as part of Hut 8 and are not directly comparable to standalone periods. With that context, let me turn to our financial results. Revenue for the Q4 was $78.3 million, up 22% sequentially from $64.2 million in the Q3, and full-year revenue was $185.2 million. While revenue provides scale context, we focus more closely on margin profile, production efficiency, and reserve growth as the primary indicators of performance. Against that backdrop, margins provide a clearer view of underlying operating performance.

Speaker #2: As a result, financial results for periods prior to March 31, 2025, reflect operations as part of HUD8 and are not directly comparable to standalone periods.

Speaker #2: With that context, let me turn to our financial results. Revenue for the fourth quarter was 78.3 million dollars, up 22% sequentially from 64.2 million dollars in the third quarter, and full-year revenue was 185.2 million dollars.

Speaker #2: While revenue provides scale context, we focus more closely on margin profile. Production efficiency and reserve growth as the primary indicators of performance. Against that backdrop, margins provide a clearer view of underlying operating performance.

Speaker #2: Cost of revenue for the fourth quarter was 36.7 million dollars, up from 28.3 million dollars in the third quarter. Overall cost of revenue for the 12 months ended December 31, 2025, was 92 million dollars.

Matt Prusak: Cost of revenue for Q4 was $36.7 million, up from $28.3 million in Q3. Overall cost of revenue for the 12 months ended 31 December 2025 was $92 million. Gross margin was approximately 53% in Q4, compared to 56% in Q3, and approximately 50% for the year overall. Gross margin was 49% in Q2 before improving to 56% in Q3 as earlier capacity stabilized. During Q4, the price of Bitcoin declined approximately 23%, resulting in a non-cash fair value adjustment reflected separately on the income statement. That adjustment did not affect gross margin, which continued to reflect the operating economics of the mining business.

Mike Ho: Cost of revenue for Q4 was $36.7 million, up from $28.3 million in Q3. Overall cost of revenue for the 12 months ended 31 December 2025 was $92 million. Gross margin was approximately 53% in Q4, compared to 56% in Q3, and approximately 50% for the year overall. Gross margin was 49% in Q2 before improving to 56% in Q3 as earlier capacity stabilized. During Q4, the price of Bitcoin declined approximately 23%, resulting in a non-cash fair value adjustment reflected separately on the income statement. That adjustment did not affect gross margin, which continued to reflect the operating economics of the mining business.

Speaker #2: Gross margin was approximately 53% in the fourth quarter, compared to 56% in the third quarter, and approximately 50% for the year overall. Gross margin was 49% in the second quarter before improving to 56% in the third quarter as earlier capacity stabilized.

Speaker #2: During the fourth quarter, the price of Bitcoin declined approximately 23%. Resulting in a non-cash fair value adjustment reflected separately on the income statement. That adjustment did not affect gross margin, which continued to reflect the operating economics of the mining business.

Speaker #2: Stepping back, the fourth quarter results reflected business that maintained operating discipline and margin integrity despite volatility in Bitcoin's market price. GNA was 7.3 million dollars in the fourth quarter, down from 8.1 million dollars in the third quarter.

Matt Prusak: Stepping back, the Q4 results reflect a business that maintained operating discipline and margin integrity despite volatility in Bitcoin's market price. G&A was $7.3 million in Q4, down from $8.1 million in Q3. For the full year of 2025, G&A totaled $33.4 million. As a percentage of revenue, G&A declined to approximately 9% in Q4 from 13% in Q3. Revenue grew 22%, while G&A dollars declined. That is operating leverage. Turning to the bottom line, net income or loss reflects the impact of non-cash fair value accounting adjustments during the quarter. Under current accounting standards, changes in the market price of Bitcoin between quarter-end dates flow through the income statement as a fair value adjustment.

Mike Ho: Stepping back, the Q4 results reflect a business that maintained operating discipline and margin integrity despite volatility in Bitcoin's market price. G&A was $7.3 million in Q4, down from $8.1 million in Q3. For the full year of 2025, G&A totaled $33.4 million. As a percentage of revenue, G&A declined to approximately 9% in Q4 from 13% in Q3. Revenue grew 22%, while G&A dollars declined. That is operating leverage. Turning to the bottom line, net income or loss reflects the impact of non-cash fair value accounting adjustments during the quarter. Under current accounting standards, changes in the market price of Bitcoin between quarter-end dates flow through the income statement as a fair value adjustment.

Speaker #2: For the full year 2025, GNA totaled 33.4 million dollars. As a percentage of revenue, GNA declined to approximately 9% in the fourth quarter, from 13% in the third quarter.

Speaker #2: Revenue grew 22% while GNA dollars declined. That is operating leverage. Turning to the bottom line, net income or loss reflects the impact of non-cash fair value accounting adjustments during the quarter.

Speaker #2: Under current accounting standards, changes in the market price of Bitcoin between quarter-end dates flow through the income statement as a fair value adjustment.

Speaker #2: Therefore, net loss for the fourth quarter was 59.5 million dollars. Driven primarily by a 112.2 million dollar non-cash loss on digital assets. Net loss for the 12 months ended December 31, 2025, was 153.2 million dollars.

Matt Prusak: Therefore, net loss for Q4 was $59.5 million, driven primarily by a $112.2 million non-cash loss on digital assets. Net loss for the 12 months ended 31 December 2025 was $153.2 million. To be clear, this is not a cash event. We did not sell Bitcoin. Operationally, the business generated positive contribution before those non-cash accounting effects, and the underlying mining and treasury economics remained healthy throughout Q4. Adjusted EBITDA was negative $77.6 million for Q4 and negative $157.3 million for the full year. Those figures include the impact of non-cash digital asset fair value adjustments. Looking ahead, our priorities are clear. We continue to focus on optimizing fleet efficiency.

Mike Ho: Therefore, net loss for Q4 was $59.5 million, driven primarily by a $112.2 million non-cash loss on digital assets. Net loss for the 12 months ended 31 December 2025 was $153.2 million. To be clear, this is not a cash event. We did not sell Bitcoin. Operationally, the business generated positive contribution before those non-cash accounting effects, and the underlying mining and treasury economics remained healthy throughout Q4. Adjusted EBITDA was negative $77.6 million for Q4 and negative $157.3 million for the full year. Those figures include the impact of non-cash digital asset fair value adjustments. Looking ahead, our priorities are clear. We continue to focus on optimizing fleet efficiency.

Speaker #2: To be clear, this is not a cash event. We did not sell Bitcoin. Operationally, the business generated positive contribution before those non-cash accounting effects, and the underlying mining and treasury economics remained healthy throughout the quarter.

Speaker #2: Adjusted EBITDA was negative 77.6 million dollars for the fourth quarter, and negative 157.3 million dollars for the full year. Those figures include an impact of non-cash digital asset fair value adjustments.

Speaker #2: Looking ahead, our priorities are clear. We continue to focus on optimizing fleet efficiency. Improvements in Jewels per Terahash can enhance Bitcoin production economics and support margin performance over time.

Matt Prusak: Improvements in joules per terahash can enhance Bitcoin production economics and support margin performance over time. We remain focused on disciplined capacity expansion. We have access to additional capacity and to next-generation ASIC technology. We will deploy when we believe the investment returns more Bitcoin over its useful life than it costs in Bitcoin terms. We would rather be right than be first. We continue to compound the reserve through mining and strategic purchases, and we continue to reinforce the three-layer architecture. Layer one provides production economics. Layer two compounds the position. Layer three positions this company to the next phase of institutional adoption. Each layer strengthens the others. This company launched less than a year ago.

Mike Ho: Improvements in joules per terahash can enhance Bitcoin production economics and support margin performance over time. We remain focused on disciplined capacity expansion. We have access to additional capacity and to next-generation ASIC technology. We will deploy when we believe the investment returns more Bitcoin over its useful life than it costs in Bitcoin terms. We would rather be right than be first. We continue to compound the reserve through mining and strategic purchases, and we continue to reinforce the three-layer architecture. Layer one provides production economics. Layer two compounds the position. Layer three positions this company to the next phase of institutional adoption. Each layer strengthens the others. This company launched less than a year ago.

Speaker #2: We remain focused on discipline capacity expansion; we have access to additional capacity and to next-generation ASIC technology. We will deploy when we believe the investment returns more Bitcoin over its useful life than it costs in Bitcoin terms.

Speaker #2: We would rather be right than be first. We continue to compound the reserve through mining and strategic purchases. And we continue to reinforce the three-layer architecture.

Speaker #2: Layer 1 provides production economics, layer 2 compounds the position, layer 3 positions this company to the next phase of institutional adoption. Each layer strengthens the others.

Speaker #2: This company launched less than a year ago. In that time, we believe we have built a revenue model that scales. A reserve that compounds.

Matt Prusak: In that time, we believe we have built a revenue model that scales, a reserve that compounds, a margin profile that held through a meaningful decline in Bitcoin, and an organizational foundation that is ready for the next phase. We have done it with a lean cost structure and a clear framework for how we allocate every dollar. The majority of our operations are anchored in the United States, powered predominantly by American energy, and built in communities that benefit from our presence. We're focused on Bitcoin, we're focused on execution, and we are building something durable. I want to thank our shareholders, our partners at Hut 8, and the entire American Bitcoin team. Operator, we will now open the line for questions.

Mike Ho: In that time, we believe we have built a revenue model that scales, a reserve that compounds, a margin profile that held through a meaningful decline in Bitcoin, and an organizational foundation that is ready for the next phase. We have done it with a lean cost structure and a clear framework for how we allocate every dollar. The majority of our operations are anchored in the United States, powered predominantly by American energy, and built in communities that benefit from our presence. We're focused on Bitcoin, we're focused on execution, and we are building something durable. I want to thank our shareholders, our partners at Hut 8, and the entire American Bitcoin team. Operator, we will now open the line for questions.

Speaker #2: A margin profile that held through a meaningful decline in Bitcoin. And an organizational foundation that is ready for the next phase. We have done it with a lean cost structure, and a clear framework for how we allocate every dollar.

Speaker #2: The majority of our operations are anchored in the United States, powered predominantly by American energy, and built in communities that benefit from our presence.

Speaker #2: We're focused on Bitcoin, we're focused on execution, and we are building something durable. I want to thank our shareholders, our partners at HUD8, and the entire American Bitcoin team.

Speaker #2: Operator, we will now open the line for questions.

Speaker #1: To ask a question, simply press star one on your telephone keypad. Again, that's star one to ask a question. And our first question from Roth Capital is from the line of Darren.

Operator: To ask a question, simply press star one on your telephone keypad. Again, that's star one to ask a question. Our first question from Roth Capital is from the line of Darren Aftahi. Please go ahead.

Speaker #1: Please go ahead.

Speaker #3: Hey guys, can you hear me okay?

Darren Aftahi: Guys, can you hear me okay?

Speaker #4: Yeah, we hear you.

Matt Prusak: Yeah, we hear you.

Speaker #3: Great. Congrats on the progress. Nice to see a really nice cost for Bitcoin number. A couple of things. Can you just speak to, in light of kind of the movement in the price of Bitcoin, just the dual fold strategy of acquiring in the market versus procuring more power and, I think I kind of heard you say, maybe hint that there could be some power outside the United States if you went down that route, but just any kind of color on what you're kind of 2026 initiatives maybe?

Darren Aftahi: Great. Congrats on the progress. Nice to see a really nice cost for Bitcoin number. A couple of things. Can you just speak to, in light of kind of the movement in the price of Bitcoin, just the dual-fold strategy of acquiring in the market versus procuring more power? I think I kind of heard you say, maybe hint that there could be some power outside the United States if you went down that route, but just any kind of color on what your kind of 2026 initiatives may be. Thank you.

Speaker #3: Thank you.

Speaker #4: Happy to do so. Good to chat with you again. It hasn't been too long since yesterday. When we look at growth and what being a Bitcoin mining Bitcoin company means, you have Bitcoin mining, which is a security of the Bitcoin network.

Mike Ho: Happy to do so. Good to chat with you again. It hasn't been too long since yesterday. When we look at growth and what being a Bitcoin company means, you have Bitcoin mining, which is security of the Bitcoin network. Then you have our treasury, which is layer 2, which is the liquidity of the Bitcoin network. Then 3 is the ecosystem of the Bitcoin network, and how do we increase adoption? Why we think that American Bitcoin is so well positioned is because we are not reliant on a singular strategy.

Speaker #4: Then you have our treasury, which is layer two, which is the liquidity of the Bitcoin network. And then three is the ecosystem of the Bitcoin network and how do we increase adoption.

Speaker #4: And so why we think that American Bitcoin is so well positioned is because we are not reliant on a singular strategy. I mean, when you look at kind of a lot of the headwinds that treasury companies have faced, it's because if you're not trading at a place where there is an ample market to be able to raise money and buy Bitcoin, you're kind of just stuck in waiting.

Mike Ho: I think when you look at kind of a lot of the headwinds that treasury companies have faced, is because if you're not trading at a place where there is an ample market to be able to raise money and buy Bitcoin, you're kind of just stuck and waiting. If you look at our last quarter, I mean, revenue grew, gross margins continued to hold, SG&A went down as a percentage of revenue. From a financial perspective, I think you have one of the strongest quarters of just continuing to compound the foundation that was built in starting the company. As we look forward into this year, when markets are more bearish, it's actually the best time to look at opportunities and build because things are a lot cheaper.

Speaker #4: But if you look at our last quarter, I mean, revenue grew, gross margins continued to hold, SCNA went down as a percentage of revenue.

Speaker #4: And so from a financial perspective, I think you have one of the strongest quarters of just continuing to compound the foundation that was built in starting the company.

Speaker #4: As we look forward into this year, when markets are more bearish, it's actually the best time to look at opportunities and build because things are a lot cheaper.

Speaker #4: And so as we look forward in 2026, you'll see us just continue to accumulate Bitcoin being sensitive and thoughtful to how do we accumulate Bitcoin taking into account Bitcoin per share.

Mike Ho: As we look forward in 2026, you'll see us just continue to accumulate Bitcoin, being sensitive and thoughtful to how do we accumulate Bitcoin, taking into account Bitcoin per share, so it's accretive to all the shareholders, and we'll continue to use a multipronged strategy. That's continuing to increase the security layer of Bitcoin, continuing to add to the liquidity in the markets, and potentially looking at ways that we can use the brand that we built and that Eric has done such a good job of getting a global platform for to see if we can increase adoption of the underlying asset itself with some interesting partnerships that we're looking at. Across the board, we don't have a single-prong strategy, and in markets like this, honestly, it's the best time to build and build the foundation for when the markets rebound and start growing.

Speaker #4: So it's a creative to all the shareholders. And we'll continue to use a multi-pronged strategy. That's continuing to increase the security layer of Bitcoin, continuing to add to the liquidity in the markets, and potentially looking at ways that we can use the brand that we built and that Eric has done such a good job of getting a global platform for to see if we can increase adoption of the underlying asset itself with some interesting partnerships that we're looking at.

Speaker #4: And so, across the board, we don't have a single-pronged strategy. And in markets like this, honestly, it's the best time to build and build the foundation for when the markets rebound and start growing.

Speaker #3: Great. One more, if I may. Obviously, there's the appreciation aspect of Bitcoin, but is there anything you're thinking about doing in terms of yield as you build your Bitcoin stack?

Darren Aftahi: Great. One more, if I may. Obviously, there's the appreciation aspect of Bitcoin, but anything you're thinking about doing in terms of yield as you build your Bitcoin back? Thank you.

Speaker #3: Thank you.

Speaker #4: Sure. I can say it's Matt. So there's a few aspects that we think about for this. So obviously, mining is our base means of accumulation, but the layer two and layer three are both prongs of our strategy that could help us with the yield aspect of the business.

Matt Prusak: Sure, I can say it's Matt. Hi there. There's a few aspects that we think about for this. Obviously, mining is our baseline means of accumulation, but the Layer 2 and Layer 3 are both prongs of our strategy that could help us with the yield aspect of the business. Layer 2 would be more what you would call the traditional finance or TradFi way of approaching yield. This would be through different financial instruments, and Michael obviously is spearheading a lot of our capital market strategy with the traditional counterparties. There's also the Layer 3 options. You know, we've seen a Cambrian explosion of Bitcoin DApps, decentralized applications, in the overall Bitcoin ecosystem in Q4 and into Q1. We're monitoring closely which of those partnerships could be the most accretive to American Bitcoin.

Speaker #4: Layer two would be more what you would call the traditional finance, or TradFi, way of approaching yield. This would be through different financial instruments.

Speaker #4: My COO, obviously, is spearheading a lot of our capital markets strategy with the traditional counterparties. Then there's also the layer three options. We've seen the Cambrian explosion of Bitcoin dApps, decentralized applications.

Speaker #4: And the overall Bitcoin ecosystem in Q4 and into Q1. So we're monitoring closely which of those partnerships could be the most creative to American Bitcoin.

Speaker #4: Again, we want to pursue a very asset-light way of doing this. Our goal is Satoshi's per share here. But we believe that there are some partnerships out there that we're looking forward to delving further into in the future.

Matt Prusak: Again, we want to pursue a very asset-light way of doing this. Our goal is Satoshis per share here. We believe that there are some partnerships out there that we're, you know, we're looking forward to delving further into in the future, that will allow us to generate more yield on the stack above and beyond the mining.

Speaker #4: That will allow us to generate more yield on the stack above and beyond the mining.

Speaker #5: And it's important to note most of the people sitting on this call speaking today have lived through the cycles of Bitcoin. We see what happens when people kind of overextend, try to get too greedy with yield.

Mike Ho: It's important to note, most of the people sitting on this call speaking today, have lived through the cycles of Bitcoin. We see what happens when people kind of overextend, try to get too greedy with yield. As we look at opportunities to generate yield, the core and most important principle is how do we protect the underlying Bitcoin stack? We believe that shareholders buy a share of American Bitcoin because they want us to increase that exposure year-over-year and increase their ownership of underlying Bitcoin. Any yield strategies we look at will be extremely conservative, having lived through 2022 and the most recent kind of bearish markets. Yield is great in a period of time when you're receiving it, but not great if it actually puts your underlying Bitcoin and has it being compromised.

Speaker #5: And so as we look at opportunities to generate yield, the core and most important principle is how do we protect the underlying Bitcoin stack?

Speaker #5: We believe that shareholders buy a share of American Bitcoin because they want us to increase that exposure year over year. And increase their ownership of underlying Bitcoin.

Speaker #5: And so any yield strategies we look at will be extremely conservative having lived through 2022 in the most recent kind of bearish markets. Yield is great in a period of time when you're receiving it, but not great if it actually puts your underlying Bitcoin and has it being compromised.

Speaker #5: So as we think about yield, different things that we've done historically and will continue to do is use third-party custodians where we're not actually giving up control of the Bitcoin.

Mike Ho: As we think about yield, different things that we've done historically and will continue to do, is use third-party custodians, where we're not actually giving up control of the Bitcoin, we're still owning the full control of the cold wallets. Things like that, which is really, really important for making sure that the actual asset base remains protected, even if you're looking at yield-generating strategies.

Speaker #5: We're still owning the full control of the cold wallets. And so things like that, which is really, really important for making sure that the actual asset base remains protected even if you're looking at yield-generating strategies.

Speaker #3: Appreciate it, guys. Thank you.

Fidor Shamalan: Appreciate it, guys. Thank you.

Darren Aftahi: Appreciate it, guys. Thank you.

Speaker #6: From Clear Street, our next question comes from the line of Brian Dobson. Please go ahead.

Operator: From Clear Street. Our next question comes from the line of Brian Dobson. Please go ahead.

Speaker #7: Hey, good morning. Thanks for taking my question. So as you're looking ahead, how do you consider capital allocation between growing the mining business and call it Bitcoin purchases on the open market?

David Brown: Hey, good morning. Thanks for taking my question. As you're, as you're looking ahead, how do you consider capital allocation between growing the mining business, and call it Bitcoin purchases on the open market? Is there a level where you're favoring one over the other? How might that thought process change as we approach the next half then?

Brian Dobson: Hey, good morning. Thanks for taking my question. As you're, as you're looking ahead, how do you consider capital allocation between growing the mining business, and call it Bitcoin purchases on the open market? Is there a level where you're favoring one over the other? How might that thought process change as we approach the next half then?

Speaker #7: And is there a level where you're favoring one over the other? And how might that thought process change as we approach the next half?

Speaker #3: We're looking at the so if you look at Bitcoin mining and how that business has grown, we've always taken a really novel approach towards growing Bitcoin mining.

Mike Ho: We're looking at Bitcoin mining and how that business has grown, we've always taken a really novel approach towards growing Bitcoin mining. Just being able to put cash out by Bitcoin miners that show up in 6 to 12 months isn't the most accretive way to grow. If you look at what American Bitcoin did with Vega, it was actually able to receive a call option and say, Look, if Bitcoin is trading at a certain price in terms of hash rate, we can step into the machines and be able to generate revenue almost immediately. You saw that happen through the rapid increase of growth rate of exahash over the last year in 2025 with American Bitcoin. When we look into 2026, the core driver is increasing Bitcoin over the long term.

Speaker #3: Just being able to put cash out, buy Bitcoin, miners that show up in 6 to 12 months isn't the most accretive way to grow.

Speaker #3: If you look at what American Bitcoin did with Vega, it was actually able to receive a call option and say, look, if Bitcoin is trading at a certain price in terms of hash rate, we can step into the machines and be able to generate revenue almost immediately.

Speaker #3: And you saw that happen through the rapid increase of growth rate of X hash over the last year in 2025 with American Bitcoin. And so when we look into 2026, the core driver is increasing Bitcoin over the long term.

Speaker #3: So any dollar that we spend that is not directly buying Bitcoin, the underwriting principle is that it will increase Bitcoin over the long term.

Mike Ho: Any dollar that we spend that is not directly buying Bitcoin, the underwriting principle is that it will increase Bitcoin over the long term. When we think about Bitcoin mining, every dollar we spend today that would go into a miner, our underwriting principle is, at the end of that period of time when that machine is retired, did we increase the Bitcoin holdings that we otherwise would have gotten by just buying Bitcoin? Overall, as we're thinking about capital allocation, we're still increasing Bitcoin, as you see, day by day. We're just slowly building day by day, incrementally. If you look back at the last year, there's been massive movements. Our perspective is daily dollar-cost averaging is a great way to grow.

Speaker #3: So when we think about Bitcoin mining, every dollar we spend today that would go into a miner, our underwriting principle is at the end of that period of time when that machine is retired, did we increase the Bitcoin holdings that we otherwise would have gone by just buying Bitcoin?

Speaker #3: And so overall, as we're thinking about capital allocation, we're still increasing Bitcoin as you see day by day. We're just slowly building, day by day, incrementally in.

Speaker #3: If you look back at the last year, there's been massive movements and so our perspective is daily dollar cost averaging is a great way to grow.

Speaker #3: We believe in Bitcoin in the long term. And when there are right and opportunistic moments where we believe that we can get a strong return on mining, we will do so.

Mike Ho: We believe in Bitcoin in the long term, when there are right and opportunistic moments where we believe that we can get a strong return on mining, we will do so. The core driver is, let's increase Bitcoin on the balance sheet. When it's opportunistic to bring on mining because the machines, we get a good structured deal, we are able to grow that, we have cheap energy costs, and we'll do so. I think that's what makes this business so unique, is when you looked at kind of the years in Bitcoin mining, when you had a lot of Bitcoin miners just chase exahash, sometimes you chase it at the compromise of underlying economics because that was your only way of growth. Our growth metric is simple: increase Bitcoin and increase Bitcoin for sure over the long term.

Speaker #3: But the core driver is let's increase Bitcoin on the balance sheet. And when it's opportunistic to bring on mining because the machines we get a good structured deal, we are able to grow that.

Speaker #3: We have cheap energy costs and we'll do so. And so I think that's what makes this business so unique is when you looked at kind of the years in Bitcoin mining, when you had a lot of Bitcoin miners just chase X hash, sometimes you chase it at the compromise of underlying economics because that was your only way of growth.

Speaker #3: Our growth metric is simple. Increase Bitcoin and increase Bitcoin for sure over the long term. And so when there are buying opportunities, we will look at those opportunities as a way to increase Bitcoin on the balance sheet faster than just buying Bitcoin itself.

Mike Ho: When there are buying opportunities, we will look at those opportunities as a way to increase Bitcoin on the balance sheet faster than just buying Bitcoin itself. When those opportunities don't exist, we'll just keep on accumulating Bitcoin day by day.

Speaker #3: And when those opportunities don't exist, we'll just keep on accumulating Bitcoin day by day.

Speaker #7: Yeah, thanks. And then, from a higher level, the debt segment has certainly been under pressure over recent months. And your mining business distinguishes you within the segment.

David Brown: Yeah, thanks. From a higher level, you know, the debt segment has certainly been under pressure over recent months, and, you know, your mining business, it distinguishes you within the segment. I guess, as you're looking at peers and competitors who've been under pressure, how do you think that market shakes out over the coming year or so?

Brian Dobson: Yeah, thanks. From a higher level, you know, the debt segment has certainly been under pressure over recent months, and, you know, your mining business, it distinguishes you within the segment. I guess, as you're looking at peers and competitors who've been under pressure, how do you think that market shakes out over the coming year or so?

Speaker #7: I guess as you're looking at peers and competitors who've been under pressure, how do you think that market shakes out over the coming year or so?

Speaker #3: Yeah, Brian, that's a great question. I mean, at the end of the day, I think we're very different than all of our competitors, right?

Mike Ho: Yeah, Brian, it's a great question. I mean, you know, at the end of the day, I think we're very different than all of our competitors, right? I mean, we mine Bitcoin. I just want this number to sink in for everybody. We mine Bitcoin at a 53% discount to spot this quarter. You know, doing so, we increased our Bitcoin holdings by 58% this quarter. We ran a 53% gross margin, right? There's no one else that can do that. In fact, frankly, when, you know, as difficulty rates fell on mining, it allowed us to mine additional Bitcoin each and every single day, right? Difficulty rates coming down actually helped us while, you know, most of our competitors kind of, you know, went dark.

Speaker #3: I mean, we mine Bitcoin. I just want this number to sink in for everybody. We mine Bitcoin at a 53% discount to spot this quarter.

Speaker #3: Doing so, we increased our Bitcoin holdings 50% this quarter. We ran a 53% gross margin, right? There's no one else that can do that.

Speaker #3: In fact, frankly, when difficulty rates fell on mining, it allowed us to mine additional Bitcoin each and every single day, right? So difficulty rates coming down actually helped us, while most of our competitors kind of went dark.

Speaker #3: And so you've got a lot of companies out there that are kind of flat. They haven't really done anything. They have increased their BTC holdings because they couldn't.

Mike Ho: You've got a lot of companies out there that, you know, are kind of flat. They haven't really done anything. They, they haven't increased their, their BTC holdings because they couldn't. This has actually been a tremendously good time for our company because we've been mining more Bitcoin, we've been maintaining our margins, and obviously, you know, the Bitcoin on our balance sheet is growing substantially. There are other benefits. There are other benefits, including tax benefits to mining at lower amounts, et cetera, that we can get into later, but this has been a fantastic period for us.

Speaker #3: This has actually been a tremendously good time for our company, because we've been mining more Bitcoin. We've been maintaining our margins, and obviously, the Bitcoin on our balance sheet is growing substantially.

Speaker #3: There are other benefits. There are other benefits, including tax benefits to mining at lower amounts, et cetera, that we can get into later. But this has been a fantastic period for us.

Speaker #7: Excellent. Thanks very much.

David Brown: Excellent. Thanks very much.

Brian Dobson: Excellent. Thanks very much.

Speaker #6: From the Rally Securities, your next question is from the line of The Door Shamalan. Please go ahead.

Operator: From B. Riley Securities, your next question is from the line of Fidor Shamalan. Please go ahead.

Speaker #3: Thank you very much, Operator, and good morning, everyone. Jens, you mentioned that assets tend to be cheap during the bear market and my question is, are you considering any M&A activity whether that's acquiring additional sites, power capacity, or maybe other strategic assets?

Fidor Shamalan: Thank you very much, operator, and good morning, everyone. Jens, you mentioned that assets tend to be cheap during the bear market, and my question is, are you considering any M&A activity, whether that's acquiring additional sites, power capacity, or maybe other strategic assets? Thank you.

Fedor Shabalin: Thank you very much, operator, and good morning, everyone. Jens, you mentioned that assets tend to be cheap during the bear market, and my question is, are you considering any M&A activity, whether that's acquiring additional sites, power capacity, or maybe other strategic assets? Thank you.

Speaker #3: Thank you.

Speaker #4: Guys, absolutely. Are we considering M&A opportunities? Absolutely. I think we've developed the greatest brand in Bitcoin. I think we have the best name in Bitcoin.

Mike Ho: Guys, absolutely. Are we considering M&A opportunities? Absolutely. I think we've developed the greatest brand in Bitcoin. I think we have the best name in Bitcoin. I think we have the best story to tell in Bitcoin. Obviously, you see the results today. I would argue that there's not another company that, you know, that can match what we've done. I can tell you there's a lot of people coming out of the woodwork, you know, to partner up with us in some way, shape, or form, on a lot of ends, right? On the energy end, obviously on the data end.

Speaker #4: I think we have the best story to tell in Bitcoin. Obviously, you see the results today. I would argue that there's not another company that can match what we've done.

Speaker #4: And I can tell you that there's a lot of people coming out of the woodwork to partner up with us and some way, shape, or form.

Speaker #4: On a lot of ends, right? On the energy end, obviously, on the data end, whether or not we explore those or we stay very pure to just our core we are doing fantastically well.

Mike Ho: You know, whether or not we explore those or we stay very pure to just our core, we are doing fantastically well. If there's a great opportunity that's accretive, you better believe we'll run toward it faster than anybody. I mean, I said this in my opening remarks, but we are a company that's less than 6 months old. I mean, we literally got listed on the Nasdaq, you know, less than 6 months ago. In totality, we're less than 1 year old. I mean, we literally formed this company less than 1 year ago. You know, obviously, every day you see us climbing that stack. We're now the 17th largest-...

Speaker #4: And if there's a great opportunity that's a creative, you better believe we'll run toward it faster than anybody. I mean, I said this in my opening remarks, but we are a company that's less than six months old.

Speaker #4: I mean, we literally got listed on the NASDAQ less than six months ago. In totality, we're less than a year old. I mean, we literally formed this company less than a year ago.

Speaker #4: And then obviously, every day you see us climbing that stack. We're now the 17th largest public Bitcoin accumulator. And you've probably seen a lot of my tweets go out there, but it feels like every week we're passing another company and passing another company and climbing that ladder.

Mike Ho: public Bitcoin accumulator. You've probably seen a lot of my tweets go out there, but it feels like every week, we're passing another company and passing another company and climbing that ladder. We're very excited. If that means M&A activity, us acquiring others, us partnering with others, other, you know, from any standpoint, whether it be the stat standpoint, whether it be the energy standpoint, whether it be the mining standpoint, I think there's tremendous opportunity for us. We're an incredibly hot brand and incredibly hot company, and I think that's almost a definite for the future in some capacity.

Speaker #4: And so we're very excited. So if that means M&A activity, and us acquiring others, us partnering with others, from any standpoint, whether it be that standpoint, whether it be the energy standpoint, whether it be the mining standpoint, I think there's tremendous opportunity for us.

Speaker #4: We're an incredibly hot brand and an incredibly hot company. And I think that's almost a definite for the future in some capacity.

Speaker #3: Thank you. This is helpful. And my follow-up is a few questions on related to performance. If you can just expand on the key drivers behind the gain on derivatives in the fourth quarter, I see nice increase, quarter to quarter.

Fidor Shamalan: Thank you. This is helpful. My follow-up is a few question on, related to performance. If you can just expand on the key drivers behind the gain on derivatives in the Q4, I see a nice increase quarter-over-quarter. This is one. The second, well, what is your EBITDA breakeven Bitcoin price currently, if you can provide color on this? Thank you.

Fedor Shabalin: Thank you. This is helpful. My follow-up is a few question on, related to performance. If you can just expand on the key drivers behind the gain on derivatives in the Q4, I see a nice increase quarter-over-quarter. This is one. The second, well, what is your EBITDA breakeven Bitcoin price currently, if you can provide color on this? Thank you.

Speaker #3: This is one. And the second, what is your EBITDA break-even Bitcoin price currently, if you can provide color on this? Thank you.

Speaker #1: So as we think about the way that we've been expanding our Bitcoin and our Bitcoin mining, there are scenarios in which we've been able to basically increase the Bitcoin mining without actually outlaying cash.

Mike Ho: As we think about the way that we've been expanding our Bitcoin and our Bitcoin mining, there are scenarios in which we've been able to basically increase the Bitcoin mining without actually outlaying cash. We're able to receive the upside of Bitcoin appreciation, meanwhile, being able to compound Bitcoin itself. That's where you see some of those derivative trades coming in. We've shared this before, in some scenarios, when we buy the miners, we're able to actually use the Bitcoin, lock it in at a mark-to-market price, be able to take the full upside of that Bitcoin if we wanted to buy it out in 2 years with cash. If Bitcoin goes down, then we can kinda forgo that Bitcoin and be able to use that cash to buy Bitcoin at the market price.

Speaker #1: And so we're able to receive the upside of Bitcoin appreciation, meanwhile being able to compound Bitcoin itself. And so that's where you see some of those derivative trades coming in.

Speaker #1: And so we share this before in some scenarios when we buy the miners, we're able to actually use the Bitcoin to lock it in at a mark-to-market price, be able to take the full upside of that Bitcoin if we wanted to buy it out in two years with cash, and then if Bitcoin goes down, then we can kind of forego that Bitcoin and be able to use that cash to buy Bitcoin at the market price.

Speaker #1: And so that's where you'll see some of the fluctuations on kind of the derivative side that reflect some of those transactions that we do in the most secretive way to be able to grow Bitcoin mining, rather than just outlaying cash out there.

Mike Ho: That's where you'll see some of the fluctuations on kind of, on the derivative side, that reflect some of those transactions that we do in the most accretive way to be able to grow Bitcoin mining rather than just outlaying cash out there.

Speaker #3: Thank you very much. Continue your our best of luck.

Fidor Shamalan: Thank you very much. Continue and best of luck.

Fedor Shabalin: Thank you very much. Continue and best of luck.

Speaker #6: From HC Wainwright, your next question comes from the line of Kevin Diddy. Please go ahead.

Kevin Dede: From H.C. Wainwright, your next question comes from the line of Kevin Dede. Please go ahead.

Speaker #3: Morning, Asher, Mike, Eric, thanks for having me on the call. You folks talk to this great discount in mining versus spot. Can you elaborate on your position with Bitmain now?

Asher Genoot: Morning, Asher, Mike, Eric, thanks for having me on the call. You folks talked to this great discount in mining versus spot. Can you elaborate on your position with Bitmain now, as that contract stands, and how you might tap it, and how long that option might last?

Kevin Dede: Morning, Asher, Mike, Eric, thanks for having me on the call. You folks talked to this great discount in mining versus spot. Can you elaborate on your position with Bitmain now, as that contract stands, and how you might tap it, and how long that option might last?

Speaker #3: Does that contract stand? And how might you tap it? And how long might that option last?

Speaker #1: As you know, we've been in the space for a long period of time. We have great relations with every major manufacturer in the space.

Mike Ho: As you know, we've been in this space for a long period of time. We have great relations with every major manufacturer in the space. Bitmain has been a great partner of ours, but we continue to have conversations with all of the manufacturers and producers of this equipment. At the end of the day, the suppliers know, folks who are close to us know, we will optimize for the best deal to do what's best for shareholders. We're looking at continued accretive and creative structures with Bitmain, in addition to other manufacturers as well. The markets are very good, as we mentioned, when there's not a lot of people buying these machines, 'cause then we can get really creative in being able to build at a lower cost in a more creative structure.

Speaker #1: Bitmain has been a great partner of ours. But we continue to have conversations with all of the manufacturers and producers of this equipment. And so, at the end of the day, the suppliers know—folks who are close to us know—we will optimize for the best deal to do what's best for shareholders.

Speaker #1: And so we're looking at continued accretive and creative structures with Bitmain. In addition to other manufacturers as well. And the markets are very good as we mentioned when there's not a lot of people buying these machines because then we can get really creative in being able to build at a lower cost in a more creative structure.

Speaker #1: And so more to come on that note. But we're continuously looking at ways to grow in creative and accretive ways that are similar to what we've done historically and will continue to do things that are new and novel to drive shareholder value in Bitcoin accumulation over the long term.

Mike Ho: More to come on that note, but we're continuously looking at ways to grow in creative, in accretive ways that are similar to what we've done historically, and we'll continue to do things that are new and novel to drive shareholder value and Bitcoin accumulation over the long term.

Speaker #3: Asher, do you see Bitmain building a U3 version of the S23?

Asher Genoot: Asher, do you see Bitmain building a U3 version of the S23?

Kevin Dede: Asher, do you see Bitmain building a U3 version of the S23?

Speaker #1: Potentially, if we want to go build a large facility. But that's too common. I think right now they have different form factors. Obviously, they've rolled out two U factors, three U factors.

Mike Ho: Potentially, if we want to go build a large facility, but that's to come. I think right now they have different form factors. Obviously, they've rolled out 2 U-factors, 3 U-factors, but before American Bitcoin, on the Hut 8 side, we really worked with them to create the direct liquid-to-chip U-factor machine that we deployed at Vega and we're using now. We continue to not only look at being consumers of Bitcoin, miners and ASICs stale, but also being technological innovation partners with them and being able to help drive where the technology and innovation goes as we build the infrastructure.

Asher Genoot: Potentially, if we want to go build a large facility, but that's to come. I think right now they have different form factors. Obviously, they've rolled out 2 U-factors, 3 U-factors, but before American Bitcoin, on the Hut 8 side, we really worked with them to create the direct liquid-to-chip U-factor machine that we deployed at Vega and we're using now. We continue to not only look at being consumers of Bitcoin, miners and ASICs stale, but also being technological innovation partners with them and being able to help drive where the technology and innovation goes as we build the infrastructure.

Speaker #1: But before American Bitcoin on the Hut 8 side, we really worked with them to create the direct liquid to chip U factored machine that we deployed at Vega.

Speaker #1: And we're using now. And so we continue to not only look at being consumers of Bitcoin miners and ASICs at scale, but also being technological innovation partners with them and being able to help drive where the technology and innovation goes as we build the infrastructure.

Speaker #3: You mentioned custody, giving you some flexibility on yield. Can you speak to specifically who your custodying with and what sort of, I guess, what dimension of flexibility you have and whether or not you plan on diversifying your custody positions?

Asher Genoot: You mentioned custody giving you some flexibility on yield. Can you speak to specifically who you're custodying with? What sort of, I guess, what dimension of flexibility you have, and whether or not you plan on diversifying your custody positions?

Kevin Dede: You mentioned custody giving you some flexibility on yield. Can you speak to specifically who you're custodying with? What sort of, I guess, what dimension of flexibility you have, and whether or not you plan on diversifying your custody positions?

Speaker #1: Yeah, our custody partners are great. We have Anchorage Digital. We have Coinbase. We have Bitgo. And so we have some of the largest custody partners out there in the world today.

Mike Ho: Yeah, our custody partners are great. We have Anchorage Digital, we have Coinbase, we have BitGo, and we have some of the largest custody partners out there in the world today. When we talk about yield generation opportunities, what we mean is, a lot of times when you need to generate yield, you actually have to send your Bitcoin to that counterparty, and then they give you yield. We're not okay with rehypothecation. When we look at potential yield generator opportunities, we are able to maintain control of the custody account where the Bitcoin is held, and then we have a tri-party agreement in looking at different yield-generating opportunities that we may underwrite. That's the key.

Asher Genoot: Yeah, our custody partners are great. We have Anchorage Digital, we have Coinbase, we have BitGo, and we have some of the largest custody partners out there in the world today. When we talk about yield generation opportunities, what we mean is, a lot of times when you need to generate yield, you actually have to send your Bitcoin to that counterparty, and then they give you yield. We're not okay with rehypothecation. When we look at potential yield generator opportunities, we are able to maintain control of the custody account where the Bitcoin is held, and then we have a tri-party agreement in looking at different yield-generating opportunities that we may underwrite. That's the key.

Speaker #1: When we talk about yield generation opportunities, what we mean is a lot of times when you need to generate yield, you actually have to send your Bitcoin to that counterparty.

Speaker #1: And then they give you yield. We're not okay with three hypotheses. And so when we look at potential yield-generating opportunities, we are able to maintain control of the custody account where the Bitcoin is held.

Speaker #1: And then we have a tri-party agreement in looking at different yield-generating opportunities that we may underwrite. And so that's a key. What we've learned in this ecosystem is counterparty risk is a bigger risk you take on if you want to generate yield.

Mike Ho: What we've learned in this ecosystem is counterparty risk is the bigger risk you take on if you want to generate yield, and we want to always be in control of the keys of our wallets. That's what we mean by we are able to control the custody of the actual coins, meanwhile, looking at opportunities where we can generate yield on top of them.

Asher Genoot: What we've learned in this ecosystem is counterparty risk is the bigger risk you take on if you want to generate yield, and we want to always be in control of the keys of our wallets. That's what we mean by we are able to control the custody of the actual coins, meanwhile, looking at opportunities where we can generate yield on top of them.

Speaker #1: And we want to always be in control of the keys of our wallets. And so that's what we mean by we are able to control the custody of the actual coins.

Speaker #1: Meanwhile, looking at opportunities where we can generate yield on top of them.

Speaker #3: Would you mind commenting a little bit on your pool strategy? You know, vis-a-vis layer your layer three? Is there a chance that you might develop your own or design your own?

Asher Genoot: Would you mind commenting a little bit on your pool strategy, you know, vis-a-vis layer, your layer three? Is there a chance that you might develop your own or design your own and obviate, you know, intermediaries there?

Kevin Dede: Would you mind commenting a little bit on your pool strategy, you know, vis-a-vis layer, your layer three? Is there a chance that you might develop your own or design your own and obviate, you know, intermediaries there?

Speaker #3: And obviate intermediaries there?

Mike Ho: We work with partners today. Foundry, for example, is a strong partner of ours. They're a US-based pool. We really believe that more and more hash rate should be securitized by the US, that's obviously a big portion of why we continue to invest in America to be a security backbone of the Bitcoin network. When you look at operating as a pool, ultimately what you're taking is probability and volatility risk. As a business, do we need to add another layer of risk exposure, or do we rather know how many X of hash are we producing and how many Bitcoin does that mine? We're looking at a variety of opportunities within the third ecosystem layer.

Speaker #1: We work with partners today. And challenge you, for example, is a strong partner of ours. They're a US-based pool. We really believe that more and more hashrate should be secured ties by the US.

Speaker #1: And so that's obviously a big portion of why we continue to invest in America to be a security backbone of the Bitcoin network. When you look at operating as a pool, ultimately what you're taking is probability and volatility risk.

Speaker #1: And as a business, do we need to add another layer of risk exposure? Or do we rather know how many X hash are we producing and how many Bitcoin does that mine?

Speaker #1: And so we're looking at a variety of opportunities within the 30 ecosystem layer. We've definitely have pool operators looking to partner into JV. But there's a whole host of opportunities that are much broader that touch a much larger base.

Mike Ho: We definitely have pool operators looking to partner into JV. There's a whole host of opportunities that are much broader, that touch a much larger base. It's adoption around not just Bitcoin mining, but Bitcoin as an asset class itself and figuring out ways we can help be a vehicle and help be an enabler for more adoption of Bitcoin on a national and global level.

Speaker #1: And it's adoption around not just Bitcoin mining, but Bitcoin as an asset class itself and figuring out ways we can help be a vehicle and help be an enabler for more adoption of Bitcoin on a national and global level.

[Company Representative] (American Bitcoin Corp): Yeah, just to add on that. I think as you look at layer three, I think building an ecosystem, accelerating Bitcoin adoption, which is one of, one of our North Stars, is a thing where if we wanted to go fast in any of these ventures, we could go alone. If we want to go far as an ecosystem, we have to go together. We're always communicating with different partners, building every part of the value chain to try and find what the most accretive way to do that is. As we think about our shareholder base and the folks that we're working on behalf of, we wanna make sure that we're doing everything so that they can capture the value that we hope to create within the Bitcoin ecosystem.

Matt Prusak: Yeah, just to add on that. I think as you look at layer three, I think building an ecosystem, accelerating Bitcoin adoption, which is one of, one of our North Stars, is a thing where if we wanted to go fast in any of these ventures, we could go alone. If we want to go far as an ecosystem, we have to go together. We're always communicating with different partners, building every part of the value chain to try and find what the most accretive way to do that is. As we think about our shareholder base and the folks that we're working on behalf of, we wanna make sure that we're doing everything so that they can capture the value that we hope to create within the Bitcoin ecosystem.

Speaker #3: Just to add on that. So I think as you look at layer three, I think building an ecosystem, accelerating Bitcoin adoption, which is one of our North Stars, is a thing where if you wanted to go fast on any of these ventures, we could go alone.

Speaker #3: But if you want to go forward as an ecosystem, we have to go together. So we're always communicating with different partners, building every part of the value chain to try and find what the most accretive way to do that is.

Speaker #3: So as we think about our shareholder base, and the folks that we're working on behalf of, we want to make sure that we're doing everything so that they can capture the value that we hope to create within the Bitcoin ecosystem.

Speaker #3: Last one, Asher, I promise. How long do we have to wait before we'll know if mining goes into the corpus site?

Asher Genoot: Last one, Asher, I promise. How long do we have to wait before we'll know if mining goes into the Corpus site?

Speaker #1: I like that. That's a double-sided question on both sides. American Bitcoin has a lot of interesting opportunities. If you actually look at the portfolio Hut 8 has today, that's dedicated to mining.

Mike Ho: I like that that's a double-sided question on both sides. American Bitcoin has a lot of interesting opportunities. If you actually look at the portfolio Hut 8 has today that's dedicated to mining, I mean, we have about 700 megawatts that's still dedicated to Bitcoin compute. American Bitcoin is really utilizing only half of that today. There's a lot of opportunity and incremental growth within the existing portfolio that exists. There's other opportunities, as Eric had mentioned, that American Bitcoin is looking at from a growth and energy perspective. I think as you look at American Bitcoin's growth from a mining perspective, there's tons of values of growth, tons of energy opportunities, and it's not one site that allows them to grow.

Asher Genoot: I like that that's a double-sided question on both sides. American Bitcoin has a lot of interesting opportunities. If you actually look at the portfolio Hut 8 has today that's dedicated to mining, I mean, we have about 700 megawatts that's still dedicated to Bitcoin compute. American Bitcoin is really utilizing only half of that today. There's a lot of opportunity and incremental growth within the existing portfolio that exists. There's other opportunities, as Eric had mentioned, that American Bitcoin is looking at from a growth and energy perspective. I think as you look at American Bitcoin's growth from a mining perspective, there's tons of values of growth, tons of energy opportunities, and it's not one site that allows them to grow.

Speaker #1: I mean, we have about 700 megawatts that's still dedicated to Bitcoin compute. And American Bitcoin is really utilizing only half of that today. And so there's a lot of opportunity and incremental growth within the existing portfolio that exists.

Speaker #1: And there's other opportunities, as Eric had mentioned, that American Bitcoin is looking at from a growth and energy perspective. And so I think as you look at American Bitcoin's growth from a mining perspective, there's tons of values of growth, tons of energy opportunities.

Speaker #1: And it's not one site that allows them to grow. And so hope that's going to give you clarity on American Bitcoin's potential and its growth here.

Mike Ho: Hope that's kinda gives you clarity on American Bitcoin's potential and its growth here. Ultimately, at the end of the day, American Bitcoin is not looking at growth for growth's sake. American Bitcoin is very clearly looking at accumulating Bitcoin over the long term, and that's why all the deals that you see American Bitcoin doing will be a lot more novel and creative in terms of how do we actually structure that upside, and how do we make sure that any investments that we make, that by the time those investments are finished, we actually accumulate more Bitcoin at the end of that, rather than just buying it at the market today. I think if you look at a lot of mining historically, probably for many companies, buying Bitcoin would have just been a better bet.

Asher Genoot: Hope that's kinda gives you clarity on American Bitcoin's potential and its growth here. Ultimately, at the end of the day, American Bitcoin is not looking at growth for growth's sake. American Bitcoin is very clearly looking at accumulating Bitcoin over the long term, and that's why all the deals that you see American Bitcoin doing will be a lot more novel and creative in terms of how do we actually structure that upside, and how do we make sure that any investments that we make, that by the time those investments are finished, we actually accumulate more Bitcoin at the end of that, rather than just buying it at the market today. I think if you look at a lot of mining historically, probably for many companies, buying Bitcoin would have just been a better bet.

Speaker #1: Ultimately, at the end of the day, American Bitcoin is not looking at growth for growth's sake. American Bitcoin is very clearly looking at accumulating Bitcoin over the long term.

Speaker #1: And that's why all the deals that you see American Bitcoin doing will be a lot more novel and creative in terms of how do we actually structure that upside and how do we make sure that any investments that we make that by the time those investments are finished, we actually accumulate more Bitcoin at the end of that rather than just buying it at the market today.

Speaker #1: I think if you look at a lot of mining historically, probably for many companies, buying Bitcoin would have just been a better bet. And American Bitcoin was structured and built as a company to fundamentally approach Bitcoin accumulation in a very, very different way.

Mike Ho: American Bitcoin was structured and built as a company to fundamentally approach Bitcoin accumulation in a very, very different way. It's not a treasury company, it's not a Bitcoin mining company. It is a multipronged Bitcoin company that looks at securitizing the Bitcoin network, adding liquidity to the Bitcoin ecosystem, and increasing adoption of the underlying asset across the world.

Asher Genoot: American Bitcoin was structured and built as a company to fundamentally approach Bitcoin accumulation in a very, very different way. It's not a treasury company, it's not a Bitcoin mining company. It is a multipronged Bitcoin company that looks at securitizing the Bitcoin network, adding liquidity to the Bitcoin ecosystem, and increasing adoption of the underlying asset across the world.

Speaker #1: It's not a treasury company. It's not a Bitcoin mining company. It is a multi-pronged Bitcoin company that looks at securitizing the Bitcoin network, adding liquidity to the Bitcoin ecosystem, and increasing adoption of the underlying asset across the world.

Speaker #3: Thank you so much, Jens, for entertaining all my questions. I really appreciate it.

Asher Genoot: Thank you so much, gents, for entertaining all my questions. I really appreciate it.

Kevin Dede: Thank you so much, gents, for entertaining all my questions. I really appreciate it.

Speaker #2: And from BTIG, you have a question from Greg Lewis. Please go ahead.

Operator: From BTIG, you have a question from Greg Lewis. Please go ahead.

Speaker #3: And good morning, everybody. And thanks for taking my question. You know, Asher and Mike, I know we've been kind of we've been talking to this a little bit.

Greg Lewis: Good morning, everybody, and thanks for taking my question. You know, Asher Genoot and Mike Ho, I know we've been talking to this a little bit, but just kinda curious, you know, at a high level, you know, as we think about Bitcoin mining as a business, there's definitely been. There's an ongoing changing of the guard, right? Where some of the initial leaders are pivoting out. This is a huge opportunity for American Bitcoin as we stand here. I guess a couple questions around that. One is, you know, just given the fact that, you know, rig production doesn't really stop, right? Whether it's Bitmain or Canaan or Bitdeer, we're seeing more or other MicroBT, others, the companies are continuing to produce more mining rigs. That looks like it's pressuring rig pricing.

Speaker #3: But just kind of curious, you know, at a high level, you know, as we think about Bitcoin mining as a business, there's definitely been there's an ongoing change of the guard, right, where some of the initial leaders are pivoting out.

Speaker #3: This is a huge opportunity for American Bitcoin as we stand here. I guess a couple of questions around that. One is, you know, just given the fact that, you know, rig production doesn't really stop, right, whether it's Bitmain or Canon or Bitdeer, we're seeing or other micro BT, others the companies are continuing to produce more mining rigs.

Speaker #3: That looks like it's pressuring rig pricing. And so I guess when you talk about counter being countercyclical, you know, how are you thinking about the opportunity to do rig orders?

Greg Lewis: I guess when you talk about being countercyclical, you know, how are you thinking about the opportunity to do rig orders? Also, how has the market evolved, you know, just given your position around the ability to do some of that maybe asset financing? Is that something that we're thinking about if we were to do a big rig purchase? I guess I'm curious on those two things.

Speaker #3: Also, how has the market evolved, you know, just given your position around the ability to do some of that maybe asset financing? Is that something that we're thinking about if we were to do a big rig purchase?

Speaker #3: I guess I'm curious on those two things.

Speaker #1: Hi, Greg. You're absolutely right. When it comes to the supply cycle for the manufacturers, the manufacturers have to commit to wafer allocations well in advance throughout the year.

Mike Ho: Hi, Greg. You're absolutely right. When it comes to the supply cycle for the manufacturers, the manufacturers have to commit to wafer allocations well in advance throughout the year. By the time they take delivery, it's usually two quarters behind, where they're taking inventory risk, where they're looking through to the environment of where Bitcoin price is and where the demand in the market is. Oftentimes, the manufacturers will sit on inventory, not reflective of where the current demand or the price of Bitcoin is trading, which is an incredible opportunity for us to be able to look to work strategic deals in real time or inventory that is in supply and can be deployed near immediately.

Speaker #1: And by the time they take delivery, it's usually two quarters behind. Where they're taking inventory risk, where they're looking through to the environment of where Bitcoin price is, and where the demand in the market is.

Speaker #1: And oftentimes, the manufacturers will sit on inventory not reflective of where the current demand or the price of Bitcoin is trading, which is an incredible opportunity for us to be able to look to work strategic deals in real time for inventory that is in supply and can be deployed near immediately when we look at how we structure these deals.

Eric Trump: When we look at how we structure these deals, we're very objective in what we're solving for, and that's ultimately, are we adding more Bitcoin per share? Are we adding more Bitcoin to our balance sheets? Some of the structures we've done in the past is how we can leverage our Bitcoin collateral to use the Bitcoin to then purchase the ASICs, take title of the ASICs. We benefit from the mining yields from the ASICs, with the optionality to be able to buy back that Bitcoin, should Bitcoin appreciate throughout that period of 2 years or longer. We maintain both the upside of the Bitcoin appreciation, as well as we receive the net mined Bitcoins from the machine purchases.

Speaker #1: We're very objective in what we're solving for. And that's ultimately are we adding more Bitcoin per share? Are we adding more Bitcoin to our balance sheets?

Speaker #1: Some of the structures we've done in the past is how we can leverage our Bitcoin collateral to use the Bitcoin to then purchase the ASICs, take title of the ASICs.

Speaker #1: We benefit from the mining yields from the ASICs. With the optionality to be able to buy back that Bitcoin, should Bitcoin appreciate throughout that period of two years or longer.

Speaker #1: So we maintain both the upside of the Bitcoin appreciation, as well as we receive the net mined Bitcoins from the machine purchases.

Speaker #3: And when you look at American Bitcoin, structurally, not only are so many players leaving the market and it's creating a huge open space, but structurally, it is almost impossible for a new company and other companies to compete because of the symbiotic relationship with Hodei.

Mike Ho: When you look at American Bitcoin, structurally, not only are so many players leaving the market and it's creating a huge open space, but structurally, it is almost impossible for a new company and other companies to compete because of the symbiotic relationship with Hut 8. Hut 8 loves the demands that it's able to receive from American Bitcoin because it allows Hut 8 to develop more sites at and be able to de-risk the development risk. From an American Bitcoin side, you have some of the lowest cost power that you're getting with Hut 8 managing the infrastructure stack. I mean, some things we haven't even talked about historically is if we think about mining, we went from mining and running 1,000 or 2 machines 5 years ago, to now running hundreds of thousands of machines.

Speaker #3: Hodei loves the demands that it's able to receive from American Bitcoin because it allows Hodei to develop more sites at and be able to de-risk the development risk.

Speaker #3: But from an American Bitcoin side, you have some of the lowest cost power that you're getting with American with Hodei managing the infrastructure stack.

Speaker #3: I mean, some things we haven't even talked about historically is if we think about mining, we went from mining and running 1,000 or 2 machines five years ago to now running hundreds of thousands of machines.

Speaker #3: The software we're using is incredible. Not only are we curtailing and trading around energy prices, but our team has actually implemented our own internal AI bots where we're able to look at all of the API and data as we're getting it from every single machine, and optimize those.

Mike Ho: We're using the software we're using is incredible. Not only are we curtailing and we're trading around energy prices, but our team has actually implemented our own internal AI bots, where we're actually able to look at all of the API and data we're getting from every single machine, optimize those. People in the field are able to ask their chat bots, where are they seeing areas for efficiency and improvement on the sites? Here, as Mike mentioned, you have a financial structural advantage because of where we are, who we are, and the demand that we're driving because of the relationships we've built over such a long period of time. You have an infrastructural advantage because of the scale of the infrastructure that Hut 8 is able to provide as a partner.

Speaker #3: People in the field are able to ask their chat box where are they seeing areas for efficiency and improvement on the sites. And so here, as Mike mentioned, you have a financial structural advantage because of where we are, who we are, and the demand that we're driving because of the relationships we build over such a long period of time.

Speaker #3: You have an infrastructural advantage because of the scale of the infrastructure that Hodei is able to provide as a partner. You have a technological advancement because of all of the investments that we've been making in the technology of operating this at a world-class status.

Mike Ho: You have a technological advancement because of all of the investments that we've been making in the technology of operating this at a world-class status. Lastly, you have some of the lowest SG&A at American Bitcoin in doing all of this together, and so it's very, very difficult for others to compete, whether it be the largest miners in the world who now are leaving or new incomers. American Bitcoin was built to be different, and it is different, and the numbers speak for themselves quarter-over-quarter.

Speaker #3: And so what and lastly, you have some of the lowest SGNA at American Bitcoin and doing all of this together. And so it's very, very difficult for others to compete, whether it be the largest miners in the world who now are leaving or new incomers.

Speaker #3: American Bitcoin was built to be different. And it is different. And the numbers speak for themselves quarter over quarter.

Speaker #1: I just want to double-click on that technology piece. We've come a long way from the days where we had to walk down the aisles and look for the one red light to troubleshoot.

Eric Trump: I just want to double-click on that technology piece. We've come a long way from the days where we had to walk down the aisles and look for the one red light to troubleshoot. To Asher's point, we now use AI mapping, and all of that is a lot more streamlined and automated these days. Also, when it comes to Bitcoin mining, it's very simple. We only increase capacity when it's profitable, and we've been doing so very profitably. This quarter, our realized energy cost was 35.7 megawatt dollars an hour, or said differently, 3.57 cents.

Speaker #1: To Asher's point, we now use AI mapping and all of that is a lot more streamlined and automated these days. But also, when it comes to Bitcoin mining, it's very simple.

Speaker #1: We only increase capacity when it's profitable, and we've been doing so very profitably. This quarter, our average realized energy cost was $35.70 per megawatt-hour—or, said differently, 3.57 cents.

Mike Ho: All right. I think. Yeah. Yes. Great. Thanks, guys.

Mike Ho: All right. I think. Yeah. Yes.

Speaker #1: I think we'll have to. Yes.

Speaker #3: Yeah. Great. Thanks, guys.

Greg Lewis: Great. Thanks, guys.

Speaker #1: So, guys, I think that's it for the main list questions. You know, maybe I'll just wrap by saying this. I think one thing that we didn't touch on this call was our SGNA.

Eric Trump: Guys, I think that's it for the analyst questions. you know, maybe I'll just wrap by saying this. I think one thing that we didn't touch on this call was our SG&A. I come out of the real estate world, you have to be SG&A conscious. If you look at the miners across the sectors, the SG&A costs that they're running, frankly, some of them are atrocious. We decreased our SG&A costs roughly 30.77% to 9% SG&A this quarter. Unbelievable. We were at 13%, which was by far the lowest in class, at least that we know of, and many times lower than some of our competitors. And now we're single digits. We're at 9% SG&A for Q4.

Speaker #1: I come out of the real estate world. You have to be SGNA conscious. If you look at the miners across the sectors, the SGNA costs that they're running, frankly, some of them are atrocious.

Speaker #1: We decreased our SGNA costs roughly 30.77% to 9% SGNA this quarter. Unbelievable. We were at 13%, which was by far the lowest in class, at least that we know of.

Speaker #1: And many times lower than some of our competitors. And now we're single digits, where we're at 9% SGNA for fourth quarter. And that just speaks to this team.

Eric Trump: That just speaks to this team. It speaks to how efficiently we're going to run. There was a lot of questions about mining. I mean, we have some of the best energy procurement anywhere, and that's because of, obviously, the relationship with Hut. They do it as well as anybody. We have unlimited potential in terms of bringing additional mining into this company. Obviously, Mike and Asher Genoot did a great job speaking to the cost of machines and some of the kind of the novel approaches that we can take to bring more mining online if we choose to do so, and if it's accretive, ultimately, to shareholders. Again, we increased our BTC holdings 58% this quarter. We mined at a 53% discount. American Bitcoin is absolutely flying.

Speaker #1: It speaks to how efficiently we're going to run. There's a lot of questions about mining. I mean, we have some of the best energy procurement anywhere.

Speaker #1: And that's because of obviously the relationship with HUD. They do it as well as anybody. We have unlimited potential in terms of bringing additional mining into this company.

Speaker #1: Obviously, Mike and Asher did a great job speaking to the cost of machines and some of the kind of the novel approaches that we can take to bring more mining online if we choose to do so.

Speaker #1: And if it's a creative ultimately to shareholders. Again, we increased our BTC holdings 58% this quarter. We mined at a 53% discount. And American Bitcoin is absolutely flying.

Speaker #1: And I can tell you the brand that we've created is something incredibly special. There's nowhere I go that people don't mention American Bitcoin. And so to be able to do this, with great friends, some of the smartest people in the world, but to be able to do this in America, largely anchored in the great state of Texas with American Energy, with American Infrastructure, this is a company that I'm incredibly, incredibly proud of.

Eric Trump: I can tell you, the brand that we've created, is something incredibly special. There's nowhere I go that people don't mention American Bitcoin. To be able to do this with great friends, some of the smartest people in the world, to be able to do this in America, largely anchored in the great state of Texas, with American energy, with American infrastructure, this is a company that I'm incredibly proud of. This is a company that I've put my heart and soul into, and I can tell you this team is gonna continue to make everybody incredibly proud. Congratulations on these results, guys. I could not be more proud of everything we've accomplished in such a short time. We will continue to sprint ahead.

Speaker #1: This is a company that I've put my heart and soul into. And I can tell you this team is going to continue to make everybody incredibly proud.

Speaker #1: So congratulations on these results, guys. I could not be more proud of everything we've accomplished in such short time. And we will continue to sprint ahead.

Speaker #1: So thank you very much, everybody, on this call. And we look forward to speaking to you next quarter.

Eric Trump: Thank you very much, everybody, on this call, and we look forward to speaking to you next quarter.

Speaker #3: Thank you.

Mike Ho: Thank you, for joining us.

Speaker #4: Thank you for joining us.

Operator: Thank you again for joining us today. This does conclude today's conference call. You may now disconnect.

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