American Bitcoin (ABTC) reported its third consecutive quarterly loss on Monday, blaming the ongoing decline in Bitcoin prices for eating into its balance sheet. The company, which holds a large portion of its assets in BTC, said the losses are starting to weigh on investor confidence and force a rethink of its financial strategy.
Three quarters of red
ABTC's latest earnings, filed with the SEC on August 3, show a net loss for the quarter ended June 30. The company has now posted losses for three straight quarters, a streak that began in late 2025 when Bitcoin first dipped below key support levels. ABTC did not provide specific dollar figures in its filing, but noted that the losses are directly tied to the mark-to-market valuation of its Bitcoin holdings.
Bitcoin price pressure
The price of Bitcoin has been under pressure for much of 2026, trading well below its 2025 highs. For a company like ABTC that mines and holds Bitcoin rather than selling it immediately, that means quarterly impairments and writedowns. The firm acknowledged that its large Bitcoin reserve — a strategy once seen as a bet on long-term appreciation — is now a liability in a bearish market.
Investor confidence takes a hit
The repeated losses are shaking faith among shareholders. ABTC's stock has slid over the past year, and analysts following the company have flagged the risk of holding such a concentrated crypto position. The company's board is reportedly under pressure to diversify its treasury or hedge against further price drops. So far, ABTC has not announced any changes to its strategy.
What comes next
ABTC is expected to release its third-quarter outlook later this month. Investors will be watching closely for any sign that the company plans to sell down its Bitcoin stash or shift to a more conservative approach. For now, the message from the earnings report is clear: the bet on Bitcoin as a corporate reserve asset is getting harder to defend.
