American Bitcoin (ABTC) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024, rose 32.7% year-over-year to $13.0 million, driven by increased mining activity and higher Bitcoin prices.

• Net loss widened to $15.8 million from $9.5 million year-over-year, reflecting higher costs and expenses, including a significant increase in general and administrative expenses and a $6.9 million increase in the fair value of notes payable.

• The company completed a reverse merger with Akerna in February 2024, resulting in a public listing and a change in control.

Financial highlights

• Mining revenues increased to $13.0 million from $9.8 million year-over-year, with the average value of Bitcoin mined rising from $26,000 to $59,000.

• Cost of revenues rose to $8.6 million from $5.6 million, mainly due to more miners, higher network hashrate, and increased energy costs.

• Adjusted EBITDA for the six months ended June 30, 2024, was a loss of $1.1 million, compared to positive $6.6 million in the prior year.

• Cash and cash equivalents at June 30, 2024, were $1.2 million, with an accumulated deficit of $62.2 million.

Outlook and guidance

• Management expects continued losses and negative cash flows in the near term and will require additional capital to fund operations over the next 12 months.

• The company may seek further equity or debt financing and is actively using an at-the-market (ATM) equity program with $68.7 million in remaining capacity.