TLDR
- American Bitcoin stock climbed over 5% despite announcing a $2.5 million PPP loan settlement.
- The settlement resolves a Justice Department dispute inherited through Gryphon Digital Mining’s merger.
- ABTC produced a record 932 Bitcoin in Q2 and expanded its treasury above 8,000 BTC.
- Quarterly revenue increased 8%, though the company reported a $57.2 million net loss.
- Management reaffirmed its Bitcoin accumulation strategy while maintaining focus on growing Bitcoin per share.
American Bitcoin Corp (NASDAQ: ABTC) shares climbed more than 5% on Wednesday after the company disclosed a $2.5 million settlement tied to a Paycheck Protection Program (PPP) loan dispute inherited through its merger with Gryphon Digital Mining. Investors also weighed the company’s latest earnings, which included record Bitcoin production and continued treasury growth despite another quarterly loss.
Source: KnockOutStocks
ABTC traded at $6.18 at the time of reporting, up 5.64% from the previous close of $5.85. The stock extended recent gains as investors focused on operational growth and the company’s expanding Bitcoin holdings.
American Bitcoin Resolves PPP Loan Investigation
American Bitcoin disclosed in its quarterly filing that it agreed to pay $2.5 million to settle allegations related to a $2.2 million PPP loan originally received by Gryphon Digital Mining. The legal matter dates back to the period when Gryphon operated as a software provider serving the cannabis industry.
The Small Business Administration approved and later forgave the loan in 2021. However, the agency reversed that decision in 2024 after determining the company may not have qualified for the program. The Justice Department later opened a civil investigation into the matter.
American Bitcoin inherited the liability after completing its merger with Gryphon last year. The settlement closes the dispute without prolonged litigation and removes an outstanding legal issue that had appeared in previous company filings.
The settlement amount exceeded the original loan value, reflecting additional costs associated with resolving the case. The company included the agreement in its latest quarterly report while continuing to report broader operational updates.
Earnings Show Record Bitcoin Production Despite Quarterly Loss
American Bitcoin also reported mixed financial results for the second quarter. Revenue increased 8% quarter over quarter to $67 million, supported by stronger mining operations. However, the company posted a net loss of $57.2 million after recording digital asset losses during the quarter.
Digital asset losses totaled $71.2 million, while adjusted EBITDA remained negative at $45 million. Even with weaker profitability, the company achieved its strongest Bitcoin production on record.
American Bitcoin mined 932 BTC during the quarter and expanded its corporate treasury to more than 8,000 Bitcoin. The company also increased its mining fleet to 89,242 machines, raising total computing capacity to 28.1 EH/s.
Mining revenue per Bitcoin declined about 5% to approximately $71,900 as Bitcoin prices softened during the reporting period. Meanwhile, the average mining cost remained relatively stable at roughly $36,500 per Bitcoin.
Management also announced a leadership change following the earnings release. Interim Chief Financial Officer Matthew Prusak stepped down to join AI infrastructure company Giga Energy. Paul Sacks, previously the company’s head of derivatives, was appointed interim CFO while retaining his existing responsibilities.
Management Reaffirms Long-Term Bitcoin Strategy
During the earnings call, executives reaffirmed their commitment to expanding Bitcoin holdings rather than reducing the treasury to support other corporate activities.
Chief Executive Officer Mike Ho said the company’s priority remains increasing “Bitcoin per share” rather than monetizing existing holdings. He noted that Bitcoin holdings grew roughly 14% during the quarter while shares outstanding increased by approximately 3%, resulting in higher Bitcoin ownership per share.
Co-founder and Chief Strategy Officer Eric Trump also reiterated the company’s long-term position on digital assets.
“We are absolute Bitcoin maximalists. I mean, Bitcoin is obviously still leading the way. Cryptocurrency in general, but Bitcoin has such an incredible future,” he said.
Wall Street sentiment has remained constructive following the earnings release. One analyst currently covering American Bitcoin has a 12-month price target of $15.00, implying roughly 144% upside from current levels.
Source: TipRanks
The outlook reflects expectations for continued growth in Bitcoin production and treasury holdings, although the estimate is based on a single analyst’s coverage.
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