In a notable development, American Bitcoin has solidified its position as the most cost-efficient publicly traded Bitcoin miner in the United States. The company reduced its production cost to around $36,200 per Bitcoin during the first quarter of 2026, a significant 23% decline from the previous quarter’s $46,900. This achievement comes amid a backdrop where many rivals are shifting focus toward artificial intelligence infrastructure, but American Bitcoin remains committed to scaling its mining operations.
The cost reduction was driven by spreading higher production volumes over a stable fixed-cost base, along with disciplined energy pricing. The activation of the Drumheller site in Alberta in late March added approximately 3.05 exahash of computing power, contributing to a total fleet capacity of 28.1 exahash by the end of the quarter, supported by nearly 89,000 mining machines. Eric Trump, co-founder and chief strategy officer, has emphasized that the company’s strategy centers on scale and low-cost production, rather than following the AI pivot trend.
While American Bitcoin reported an $81.8 million net loss, largely due to a $117 million non-cash impairment on its Bitcoin holdings, its gross mining margin exceeded 50%. The company added 1,620 Bitcoin to its strategic reserve during the quarter, bringing total holdings to about 7,021 BTC. This reserve growth was fueled by 817 Bitcoin from mining and 803 from open-market purchases, reflecting a 30% increase from the prior period.
A key factor in American Bitcoin’s low-cost advantage is its access to electricity priced below $0.05 per kilowatt-hour at its primary sites. This structural edge allows the company to maintain profitability even as tariffs on ASIC hardware and materials from Southeast Asia raise costs for other US miners. With Bitcoin hovering near $80,000 during the quarter, the $36,200 production cost provides a substantial margin that supports the company’s strategy of holding rather than selling its mined coins, enabling long-term treasury accumulation.