American Bitcoin (Nasdaq: ABTC) reported an operational production cost of $36,200 per Bitcoin for the first quarter of 2026, positioning it as a low-cost leader while its treasury expanded to over 7,300 BTC.
The production cost figure stands in sharp contrast to the wider industry, where rising energy prices and network difficulty have squeezed profitability. According to a late 2025 report from CoinShares, the average cash cost to produce one Bitcoin for publicly traded miners had climbed to nearly $80,000, putting many operators at a loss when the coin’s price hovered near $81,000.
American Bitcoin’s disclosure shows the firm is operating its fleet of approximately 90,000 machines, representing about 3% of global capacity, at a cost basis less than half of the reported industry average. This efficiency allows the company to remain highly profitable and continue its accumulation strategy while competitors are forced to adapt their business models.
The firm’s low-cost structure provides a critical buffer against Bitcoin price volatility and rising operational pressures that are forcing a strategic shift across the sector. With mining margins compressing, many firms are pivoting to high-performance computing (HPC) and AI cloud services, which can offer gross margins up to 80% compared to around 60% for Bitcoin mining, according to CoinShares analysis.
Industry Pivots to AI Amid Margin Squeeze
The strategic pivot away from pure-play Bitcoin mining is accelerating among ABTC’s publicly traded peers. Companies including Core Scientific (Nasdaq: CORZ), TeraWulf (Nasdaq: WULF), and Cipher Digital (Nasdaq: CIFR) have announced significant investments in data center infrastructure to serve the booming AI industry.
TeraWulf’s first-quarter results highlighted this transition, with HPC leasing revenue hitting $21 million, up 117% from the prior quarter and significantly outpacing its digital asset revenue of $13 million. This shift is being rewarded by investors; miners with AI agreements trade at a forward revenue multiple of approximately 12.3x, more than double the 5.9x multiple for those focused purely on Bitcoin mining, according to CoinShares.
While American Bitcoin has not announced a similar pivot, its industry-leading production cost suggests it may be better positioned to withstand the economic pressures of the current Bitcoin cycle. Its ability to generate profit at current levels gives it strategic flexibility, allowing it to continue accumulating Bitcoin while others are forced to sell holdings and invest heavily in the costly transition to AI infrastructure, which can run between $8 million to $15 million per megawatt.
This article is for informational purposes only and does not constitute investment advice.
