American Bitcoin Corp shares jumped 5.6% on Wednesday, closing at $6.18, after the company settled a longstanding dispute with the Justice Department over a pandemic-era loan. The $2.5 million settlement resolves a Paycheck Protection Program investigation inherited when ABTC merged with Gryphon Digital Mining last year.
The original $2.2 million PPP loan went to Gryphon back when it operated as a software provider for the cannabis industry. The Small Business Administration approved and forgave it in 2021, but reversed course in 2024 after concluding Gryphon probably didn't qualify for the program. The DOJ opened a civil case. Now it's closed. The settlement amount exceeded the original loan, reflecting legal costs and penalties tied to the resolution.
On the operational side, things look solid. Q2 revenue climbed 8% quarter-over-quarter to $67 million. More importantly, the company mined a record 932 Bitcoin in the quarter and pushed its total treasury above 8,000 BTC. That's what management wanted investors to focus on, and largely they did. The company reported a $57.2 million net loss for the period, but the market shrugged. Management reiterated its Bitcoin accumulation strategy and said it remains committed to growing Bitcoin per share.
ABTC closed near recent highs, with investors pricing in operational momentum over quarterly losses.
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