"Bitcoin declined about 23% in the fourth quarter, pressuring companies that hold large reserves of the cryptocurrency on their balance sheets. Under updated rules from the Financial Accounting Standards Board, firms must mark digital asset holdings to market each reporting period. As a result, American Bitcoin recorded a $227 million non-cash loss tied to the revaluation of its bitcoin treasury."
"The company ended the year with 5,401 bitcoin and has since increased that figure to more than 6,000 BTC, according to a statement from co-founder Eric Trump. American Bitcoin said roughly one-third of its holdings were acquired through mining operations, with the remaining two-thirds accumulated through open-market purchases and strategic transactions."
"The company raised $150.5 million during the quarter through an at-the-market stock offering, capital it used to increase its bitcoin holdings. Management said the equity issuance boosted per-share bitcoin exposure by nearly 50%."
American Bitcoin Corp., a Trump family-linked mining company trading on Nasdaq, reported Q4 revenue of $78.3 million, slightly below analyst expectations, with full-year revenue reaching $185.2 million. The company posted a $59 million net loss primarily due to a $227 million non-cash loss from revaluing its bitcoin treasury as prices fell 23% in the quarter. Under updated accounting standards, firms must mark digital assets to market each reporting period. American Bitcoin ended the year with 5,401 bitcoin, later increasing holdings to over 6,000 BTC through mining operations and market purchases. The company raised $150.5 million through stock offerings to expand bitcoin holdings, boosting per-share exposure by 50%. Stock shares have declined nearly 90% from their peak.
#bitcoin-mining #cryptocurrency-holdings #financial-losses #trump-family-business #accounting-revaluation
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