Trump American Bitcoin recorded a loss of $45.2 million in the first quarter of 2026, at a time when the price of Bitcoin was stabilizing above $80,000, and this gap is at the heart of the current story. The project, publicly backed by Donald Trump Jr. and funded with $250 million in political capital, is losing money in an era that demands high-performance hardware rather than simple brand recognition.
In fact, political discourse and operational calculations are now moving in opposite directions, and it is clear that the language of numbers will ultimately win out.
Losses of 45 million dollars… What do the numbers say?
The main problem is the operational structure; The average cost of mining one Bitcoin at American Bitcoin is around $68,000, compared to a market price that briefly reached $81,425. This small margin completely disappears when energy costs increase or hashrate efficiency decreases.
The company’s hardware is 18 joules per terahash (J/TH), compared to Marathon Digital’s 14 joules per terahash (J/TH), meaning ABTC consumes significantly more power per unit of computing work, a gap whose implications are growing by the day.
Revenue fell 41% year-over-year in the first quarter of 2026 and the operational hash rate fell from 10 to 7.2 gigahads per second, a 28% contraction that directly reduced Bitcoin production. According to company data, it mined 4,500 bitcoins throughout 2025 at an average cost of $68,000, while taking on more than $200 million in debt to finance the expansion of its facilities in Texas and Wyoming.
The final quarter of 2025 alone saw a net loss of $59.5 million resulting from a decrease in the value of equipment worth $70 million, coinciding with a 23% decline in Bitcoin from $105,000 to $81,000.
Energy costs remain the biggest structural constraint; Data from Glassnode indicates that ABTC’s average energy price is around $0.045 per kilowatt hour, which is the most local mining companies can afford in the current halving era. This isn’t bad luck, but rather a direct result of the April 2024 halving aimed at reducing bonuses, at a time when U.S. energy costs have increased 35% since 2025, according to a February 2026 assessment from TipRanks analyst James Thorne.
Does political support change the economics of mining?
Trump’s support has yielded tangible results in terms of funding; Donald Trump Jr. joined American Bitcoin’s board of directors in September 2025, and within weeks the company closed a $250 million private funding round led by Trump-linked World Liberty Financial.
ABTC’s valuation rose nearly 40% in the fourth quarter of 2025 thanks to this political connection, Galaxy Digital’s Alex Thorne reported in a March 2026 report. The political influence succeeded in opening the floodgates of capital and improving investor confidence, but failed to influence the network’s “rocky adjustment.”
Political capital cannot negotiate with the Bitcoin protocol; The network’s hash rate continued to rise after the halving, driven by what Thorne described as “a massive influx of cheap Chinese hash rates,” putting pressure on the profit margins of all local miners, regardless of who their board members are.
As a result, AMBT stock fell 12% after reporting its first quarter 2026 results, behind Riot Platforms and Marathon Digital, as the market priced in the vast gap between the media narrative and actual production.
The legal and legislative weight remains an additional variable that the reputation of the brand cannot neutralize. Although Trump’s position in the crypto market is attracting capital, the mining incentive bill introduced by the administration in March 2026, which aims to provide $1 billion in support to local miners by the third quarter of 2026, could be the real deciding factor going forward.
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