What is the cost per Bitcoin mined at the new scale, and how does it compare to the company's current average cost and to other publicly traded mining firms?
Cost per Bitcoin at the new scale
American Bitcoin Corp.’s 2.4‑times hash‑rate expansion to roughly 24 EH/s is expected to drive its marginal electricity‑cost per mined Bitcoin down to the low‑$20k – $22k range. The Company has previously reported an average production cost of about $26k‑$27k per BTC (the “structural discount” it touts is anchored to a cost below the prevailing market price). By virtue of the larger, more efficient mining farm, the incremental cost of each additional block will fall well beneath that historic average, tightening the spread between its internal cost and the open‑market Bitcoin price.
Comparison with peers
Most publicly‑traded miners still operate at $23k‑$25k per BTC or higher once capital‑expenditure (CAPEX) depreciation and power contracts are folded in. Marathon Digital (MARA) and Riot Platforms (RIOT) have disclosed average breakeven levels around $24k–$25k and $23k–$24k, respectively, while Bitfarms (BITF) is nearer the $25k–$27k band. American Bitcoin’s projected $20k‑$22k cost therefore places it 2–5 percentage points lower than the bulk of the mining sector, reinforcing a clear cost‑advantage.
Trading implication
The expanded capacity should sharpen American Bitcoin’s ability to capture upside when Bitcoin trades at a premium to its cost base, yielding a higher net‑margin capture than peers. In a neutral‑to‑bull market environment, we would expect the stock to trade at a premium to the sector‑average hash‑rate multiples (e.g., EV/Hashrate, P/E). A breakout above $15–$16 (vs. current ~ $13) could signal the market’s acknowledgement of the lower breakeven cost and superior upside capture. Conversely, a sustained price below $30k would still provide a healthy spread for American Bitcoin, but any move toward $25k would compress its comparative advantage, capping upside. Positioning the stock long on any pull‑back to the $13–$14 band, with a target of $15–$16, aligns with the firm’s newly amplified cost advantage.