American Bitcoin Corp.

Good morning and welcome to American Bitcoin's second quarter 2026 earnings call.

Following prepared remarks, we will open the line for questions. As a reminder, this call is being recorded and a transcript will be made available on abtc.com. Before we begin, please note that during this call, forward-looking statements will be made within the meaning of the federal securities laws. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially. For a detailed discussion of the risks and uncertainties that could cause actual results and events to differ, please refer to AmericanBitcoins' filings with the Securities and Exchange Commission, including the company's most recent Annual Report on Form 10-K for the fiscal year ending December 31, 2025 and its subsequent quarterly reports on Form 10-Q. American Bitcoin undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances after the date of this call, except as required by law. During this call, the company may also discuss certain non-GAAP financial measures, Thank you and good morning everyone.

Before I get into the results, I want to spend a minute on how we think about this business, because it explains the decisions behind the results we will cover today. Our conviction is simple. We believe Bitcoin is a growing capital asset and that its long-term compounding will outperform our cost of capital. And at its core, American Bitcoin is an operating business built on this conviction. While Bitcoin is facing headwinds, our response is to do the work today that prepares us for tomorrow. That is why strengthening our operating business is so important. It is what allows us to continue to grow through Bitcoin's market cycles. At the same time, we are clear-eyed about the environment. Every business navigates macro headwinds and tailwinds. In Bitcoin mining, those forces are structural. On the cost side, competition for power has intensified as demand from other large-scale use cases grow. On the revenue side, the Bitcoin price declined during the quarter, which compressed mining revenue across the industry. And the next halving will reduce block subsidy again. On the schedule, Bitcoin has always followed. We cannot control these forces. What we can control is how we respond to them. We believe the hallmark of an enduring business is the ability to create value across market cycles. And we view this stretch as a period of opportunistic growth for this company. Our conviction in Bitcoin's long-term adoption is unchanged and we are continuing to evaluate opportunities in which we can improve our unit economics and grow our operating business. We will share more as those opportunities take shape. Through this environment, we have centered American Bitcoin on operating excellence and bottom line economics. Our goal is to increase shareholder value by running a disciplined, efficient business through the cycle and to earn your confidence the only way it can be earned, through execution quarter after quarter. I will cover the quarter in three parts, the performance of the mining platform and our financial results, the growth of our strategic reserve, and what it means per share and our near-term priorities. With that context, let me turn to our second quarter, which was a quarter of higher production, revenue growth and continued reserve accumulation. In Q2 2026, we mined 932 Bitcoin compared with 817 Bitcoin in the first quarter, an increase of approximately 14%. This was our highest quarterly production on record. Drumheller was an important contributor. The site was fully energized in April, adding roughly three exahash of next generation capacity. So Q2 was the first quarter in which the site contributed at scale. Revenue was approximately $67 million in Q2, compared with $62.1 million in Q1, an increase of approximately 8%. That growth came against a declining Bitcoin price, which declined approximately 12% period end over period end from Q1, including a peak to trough decline of approximately 28% from May 10th to June 26th. The increase from Q1 was driven by higher production, the first quarter of Drumheller at scale, and a downward adjustment in network difficulty, not by a favorable price environment. Cost of revenue was approximately $34 million compared with $29.6 million in Q1. Gross profit was approximately $33 million in Q2 compared with $32.5 million in Q1. And gross margin was approximately 49% in Q2 compared with 52% in Q1. The minor margin compression in the quarter resulted from the decline in BIC1 price, not from a deterioration in the underlying cost structure. The increase in cost of revenue quarter over quarter was primarily driven by marginally higher energy costs at selective sites. General and administrative expense was approximately $7.7 million compared with $6.9 million in Q1 and remained roughly flat as a percentage of revenue at approximately 11% quarter over quarter. On a GAAP basis, net loss for the quarter was approximately $57.2 million compared with a net loss of $81.8 million in Q1. The result includes a loss on digital assets of $71.2 million compared with a $117.2 million loss in Q1. That reflects the required fair value measurement of Bitcoin we continue to hold, an accounting mechanism, not a realized trading result. At quarter ends, our total owned fleet stood at nearly 90,000 miners, representing approximately 28.1 exahash per second of capacity. of which approximately 25 exahash was operational at an average efficiency of approximately 14 joules per terahash. Revenue per Bitcoin mined was approximately $71,900, down roughly 5% from approximately $76,000 in Q1. That compares with the Bitcoin price decline of approximately 12% over the same period on a period-end basis. In other words, Revenue per Bitcoin held up better than the price move, and with record quarterly production on top of it, total revenue still grew approximately 8%. Production, not price, drove our growth this quarter. Cost to mine was approximately $36,500 per Bitcoin, compared with approximately $36,200 in Q1, an increase of less than 1%. Despite a volatile price environment and the energization of new capacity during the quarter, mining Bitcoin at a meaningful discount to its market price remains the engine of this business. And holding our unit costs roughly flat through another volatile quarter reflects the pairing of efficient infrastructure with competitive energy across our sites. Looking ahead, summer conditions can affect production and power economics, particularly in Texas. We will continue to focus on optimizing for economic output rather than simply maximizing uptime. Next, let me turn to the strategic reserve. We began the quarter with approximately 7,021 Bitcoin and ended it with 8,002 Bitcoin, growth of nearly 1,000 Bitcoin or roughly 14% in a single quarter. That growth reflects how our accumulation model is built. Mine production is the foundation supplemented by strategic at-market purchases when we believe they are accretive. This quarter, the increase came primarily from mine production, supplemented by approximately $4 million of strategic at-market purchases. And we do not sell a single Bitcoin from our balance sheet reserve. Mining and purchases perform different roles. Mining uses our infrastructure to convert power into Bitcoin at a discount. Purchases are opportunistic. We weigh liquidity, market conditions, and our cost of capital. And when those factors do not support per share accretion, we buy less. The economic value of the reserve will move with the Bitcoin price, and fair value accounting will make that movement visible in the income statement each quarter. Our operating policy is not based on that quarterly mark. We are managing the reserve as a long-duration strategic asset. One housekeeping note before I turn to per share figures. All per share comparisons today are presented on a consistent basis with prior periods restated to match. And a quick reminder on terminology. Satoshis per share and Bitcoin per share measure the same thing. One Bitcoin equals 100 million Satoshis. So the difference is simply one of scale. At quarter end, Satoshi's per share stood at approximately 11,000, compared with approximately 9,950 as of March 31st, growth of approximately 11% in a single quarter. Since her NASDAQ listing on September 3rd, 2025, Satoshi's per share has grown approximately 170%. Satoshi's per share is one of the measures we use to track our discipline in growing our Bitcoin reserve faster than our share count. Our approach to the ATM program follows that same logic. We ended the quarter with approximately 82% of capacity remaining under the ATM program. We do not view share issuance as an end in itself. Thank you for joining us today. running an efficient mining platform and growing our Bitcoin ownership per share. We are not stepping back from our thesis. We are doubling down on it, on Bitcoin and on the infrastructure that supports it. We will be disciplined in how we pursue that growth, and we will keep you updated as we execute. On a more personal note, our president and interim chief financial officer, Matt Prusak, has decided to take on an exciting new opportunity in his hometown of Austin. For many of us, our relationship with Matt goes back more than 10 years, long before American Bitcoin existed. Through the U.S. Bitcoin Corp. days, to our merger with Hut8, then through ABTC's launch, and everything we have built together since. Matt has truly been a great partner and a friend. We are a small team here at American Bitcoin, and any team member's success is a feather in all of our caps. He will remain in his role through August 4th to support a smooth transition, and Paul Sachs, our head of derivatives, will step in as interim chief financial officer. Matt, thank you. Congratulations, and all of us are excited for you as you begin this next chapter. With that, I will turn the call over to our chief strategy officer, Eric Trump.