American Bitcoin's Q2: Mining Through the Dip, Stacking Sats per Share

Record production and a 49% gross margin despite a 12% Bitcoin price decline — the company's 'Satoshis per share' north star remains intact.

GRYP · Earnings Call · 2026-08-03

The Quarter: Production Beats Price

American Bitcoin (GRYP) delivered its strongest quarter yet in Q2 2026, mining 932 Bitcoin versus 817 in Q1, a 14% increase. Revenue rose 8% to approximately $67 million, but the story is not price—it's production. As CEO Michael Ho put it: “Our conviction is simple. We believe Bitcoin is a growing capital asset and that its long-term compounding will outperform our cost of capital.” — Michael Ho · 2026-08-03 That conviction is now being put to the test, with Bitcoin down roughly 12% period-end and nearly 50% from its all-time high, yet the company still posted a gross margin of approximately 49%, down only 3 points from Q1. Ho added: “Revenue per Bitcoin mined was approximately $71,900, down roughly 5% ... Cost to mine was approximately $36,500 per Bitcoin compared with approximately $36,200 in Q1, an increase of less than 1%.” — Michael Ho · 2026-08-03 The efficiency of the fleet—now 28.1 exahash with an average 14 joules per terahash—is what makes the Bitcoin mining business work even when prices fall.

Satoshis per Share: The Real Dividend

The strategic reserve grew from 7,021 to 8,002 Bitcoin, a 14% single-quarter increase, driven entirely by mining and opportunistic purchases, with zero sales. Management frames this as a per-share phenomenon: Satoshis per share rose 11% quarter-over-quarter to roughly 11,000, and 170% since listing. Chief Strategy Officer Eric Trump hammered the point:

Name another company in the world that can do that. ... We are absolute Bitcoin maximalists.
Eric F. Trump · 2026-08-03

This is a direct evolution of the capital allocation philosophy laid out in the prior quarter by Executive Chairman Asher Genoot: “We're looking at the... If you look at Bitcoin mining and how that business has grown, we've always taken a really novel approach towards growing Bitcoin mining.” — Asher Genoot, Executive Chairman · 2026-02-26 The novelty is in never selling the core asset and using the ATM program sparingly—82% of capacity remains unused.

Hash Rate and the AI Migration

The company sees a permanent structural tailwind from peers exiting pure mining. Ho explained on the call: “What the numbers show is about 1/3 of the Bitcoin network was primarily driven by U.S. public companies, some of our peers. Our peers have in the recent quarters have all pivoted existing Bitcoin mining sites and have signed or in the process of signing AI data center sites.” — Michael Ho · 2026-08-03 This dynamic supports a stable or declining network hash rate, which benefits GRYP's production without additional capital. The company also holds a unique position on cost per Bitcoin—$36,500—a number that puts it far below the spot price and reinforces its margin resilience.

From Penny-Stock Precursor to 49% Gross Margins

The fundamental record reveals how far this company has come. The 10-Q filed in May 2025 shows revenue of just $2 million for the latest quarter—a far cry from the $67 million reported now. The pre-merger business was effectively a shell with negative gross margins. Total Revenue of $2M in Q1 2025 underscores the transformation. That numbers contrast starkly with the current performance, where the company maintains ~50% gross margins even with Bitcoin depressed. Eric Trump, in the prior call, had teased this ability: “I think that's what makes this business so unique, is when you looked at kind of the years in Bitcoin mining...” — Eric Trump, Co-founder and Chief Strategy Officer · 2026-02-26 The stock market has noticed. The recent 90-day price action shows a +482.5% return, with a peak of $1.72 before a -19.8% drawdown. Volatility is extreme, but the direction is clear: this is no longer the dormant micro-cap it once was. The Q2 report reinforces the thesis that the company can compound Bitcoin per share through adverse conditions, a key differentiator in a sector littered with stale treasury plays.