Bitmain Ties Up 40% of American Bitcoin's $371M Reserve

American Bitcoin added approximately 932 BTC to its reserve in the second quarter, bringing its total holdings to 8,002 BTC. The miner reported $67.015 million in revenue during this period.

However, a closer look at the company's cash flows reveals that nearly two-fifths of its reserve is tied up with Bitmain through miner-purchase agreements. These commitments account for 38.6% of American Bitcoin's holdings, valued at $371.687 million.

The company's mining operations generated most of the quarter's work, adding 981 BTC to its reserve between March 31 and June 30. The $71,900 revenue per mined BTC and a stated cost of $36,500 per mined BTC mask a more complex picture, as a $28.237 million depreciation-and-amortization charge is not included in the unit-economics metric.

The company's GAAP net loss of $57.151 million and digital-asset fair-value loss of $71.178 million highlight the challenges faced by American Bitcoin in managing its reserve strategy. Despite equity financing playing a significant role, mining operations remain central to the company's growth.