Cryptocurrency market: Bitcoin falling records and hopes for a reversal
The company employs a dual strategy of mining and buying, with roughly one-third of BTC coming from mining operations. The rest comes through open market purchases and strategic transactions, which are largely funded by selling shares, coindesk.com writes.
ABTC, which is 20% owned by Eric Trump and Donald Trump Jr. raised $150.5 million through an open market offering during the quarter. The capital helped increase its bitcoin per share exposure by nearly 50%. It now owns more than 6,000 BTC.
During the quarter, the company mined bitcoin at a gross margin of 53%, indicating that production costs are well below spot prices despite the cryptocurrency’s falling price. Revenue grew 22% compared to the third quarter.
New guidance from the Financial Accounting Standards Board (FASB) requires companies to value cryptocurrency assets at current market value. The price of bitcoin fell 23% during the period, forcing American Bitcoin to record a loss of $227 million.
The company’s shares rose 3.8% in over-the-counter trading and are now worth $1.09. However, their price is down nearly 90% from a high of around $9 recorded last year.
