American Bitcoin Corp Posts Substantial Q4 Loss Due to Declining Crypto Prices

American Bitcoin Corp, listed as ABTC on the stock market, has faced a major setback in the fourth quarter of last year. According to their financial reports, the company incurred a net loss of $59.45 million, a stark contrast to the $3.48 million profit it recorded during the same period in the previous year.

The main reason behind this significant decline is the 23% drop in bitcoin's price during Q4. The new FASB accounting rules require companies to value their crypto holdings at market prices, leading to a non-cash loss of $227 million for ABTC.

Despite this setback, the company's mining operations showed resilience, with a gross margin of 53% on bitcoin production costs. This is notable, as it indicates that even with declining prices, ABTC can maintain profitability in its core business.