ABTC accumulated a bunch of Bitcoin, then lost $59 million — a reality check amid market panic

SnapshotBot · 2026-02-28T07:19:56+00:00

The article analyzes the financial status of Bitcoin mining company ABTC. Despite a significant increase in its Bitcoin holdings, it still suffered a net loss of $59 million in the fourth quarter, mainly due to Bitcoin impairments. Many mining companies are transitioning to AI, reflecting increasing industry segmentation. The article warns retail investors not to be misled by market noise and recommends holding Bitcoin directly rather than chasing uncertain mining company investments.

SnapshotBot

2026-02-28 07:19:56

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The story of “HODLing through winter” is beautiful, but the losses are brutal.

When Eric Trump posted his tweet, Bitcoin was hovering below $68,000, with a fear index of only 10. His selling point: ABTC’s Bitcoin holdings increased by 58% quarter-over-quarter to 6,235 coins, with mining costs 53% below spot prices—packaged as a textbook case of “fear in others, greed in me.” The implication was to portray ABTC as a contrarian expansion force, mining aggressively as network difficulty drops, while MARA and Hut8 are losing money and shifting to AI. The problem is, behind the shiny story, there was a net loss of $59 million in Q4, driven by Bitcoin impairments—a reminder that under fair value accounting, a drop in coin prices causes “treasury strategies” to blow up on financial statements.

This tweet spread quickly in the crypto community. Marketing accounts emphasized that ABTC is the “17th largest Bitcoin holder,” but @joelgriffith directly countered: ABTC’s stock price has fallen 92% since May. Reports from CoinDesk and The Block pointed out that, although revenue rose 159% year-over-year to $78.3 million, Bitcoin dropped 23% in Q4, and the $227 million impairment for the year exposed the risks of full-accumulation strategies clearly. On-chain data shows that on February 26, Bitcoin’s daily trading volume was $45.5 billion, with no obvious change in capital flows—yet, with such a low fear index, retail investors may have already sold out. If ABTC’s logic holds, it might be a mispricing opportunity.

Trump’s label creates noise: WLFI controversy, Senate investigations into token transfers—these make ABTC look more like a political tool than a mining company.
Industry is diverging: MARA lost $1.7 billion, Hut8 lost $279 million, both shifting toward AI. ABTC’s stubborn Bitcoin-focused approach seems a bit outdated.
Retail investors are trapped: Millions of views fueled FOMO buying, but on February 27, the stock fell 5.56%. Without actual performance, hype can’t push prices up.

Camp	Basis	Market Impact	My View
Bullish (Eric Trump, crypto.news)	6,235 BTC holdings (+58% QoQ), mined 783 BTC in Q4, cost $46,900 (53% below spot), sourced from PR Newswire and SEC filings	Reinforces “mining and HODLing” appeal in bear markets, even as stock price drops 40% YTD, retail still rushes in	Overestimated. Mining discounts are temporary. I prefer miners with AI businesses like Hut8.
Realists (@joelgriffith, CoinDesk)	Q4 loss of $59 million, impairment of $112 million; Bitcoin down 23% in Q4; 17 million shares traded on Feb 26 without volume spike	Highlights accounting risks, potential ETF reductions	Spot on. Losses reveal underestimated volatility risk. If exposure increases, consider options to short ABTC volatility.
Industry pessimists (TradingView, The Block)	Entire industry suffering (MARA lost $1.7 billion, Hut8 shifting to AI), ABTC down 85% over half a year, underperforming Bitcoin	Accelerating shift from pure mining to AI infrastructure	Reaction is slow, but structural issues are real. ABTC’s model is losing ground; holding Bitcoin directly is better.
Macro opportunists (based on fear/greed data)	Bitcoin hit $67,947 on Feb 26, with $45.5 billion in volume; no on-chain change after tweet	Treats the tweet as noise, positioning for Bitcoin rebound during capitulation, avoiding miners	Logical. Tweet spread doesn’t equal alpha. Buying spot Bitcoin on dips is smarter; ABTC’s hype just distracts.

Don’t be fooled by engagement metrics. A million views didn’t move ABTC’s stock price or Bitcoin capital flows. Without macro support, viral spread is just noise. My stance: avoid bullish bets on ABTC. If you want Bitcoin exposure, just buy spot—Trump’s label only adds controversy risk and does nothing to prevent impairments.

Conclusion: Those who chased this tweet into the market are already late. Long-term holders might find bargains during low-volatility periods, but short-term traders shouldn’t participate. The industry is clearly diverging, and capital should be allocated more broadly.

BTC-3.65%

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