American Bitcoin (ABTC), a bitcoin mining company backed by the family of President Donald Trump, reported a $59 million loss in the fourth quarter as bitcoin’s decline reduced the value of its holdings.

Loss driven by mark-to-market rules

The company said bitcoin fell 23% during the quarter.

New Financial Accounting Standards Board (FASB) rules require firms to mark crypto holdings to market, which led American Bitcoin to report a $227 million non-cash loss.

6,000 BTC held after mining and purchases

American Bitcoin said it now holds more than 6,000 BTC.

It described a dual approach, with roughly one-third of its bitcoin coming from mining and the remainder from open-market purchases and strategic transactions.

The company is 20% owned by Eric Trump and Donald Trump Jr.

It raised $150.5 million through an at-the-market stock offering during the quarter, and said the capital increased its per-share bitcoin exposure by nearly 50%.

Mining margins and revenue

American Bitcoin said it mined bitcoin at a 53% gross margin during the quarter.

Revenue rose 22% from the third quarter.

For the full year, the company generated $185.2 million in revenue.

Stock performance and Hut 8 update

Shares were up 3.8% in pre-market trading at $1.09, but down nearly 90% from around $9 last year.

The company’s majority owner, Hut 8, reported fourth-quarter earnings on Wednesday.

Hut 8 said it ended the year with an 8,500 MW development pipeline and secured a $200 million revolving credit facility with Two Prime, while expanding its Coinbase facility to $200 million for total credit capacity of $400 million.