American Bitcoin posts $126m quarterly profit on bitcoin treasury gains
The Miami-based miner recorded a $197.3 million mark-to-market gain on its digital asset reserve, turning around a $57.2 million net loss from the previous quarter.
Key takeaways
- 1American Bitcoin posted a $126 million Q3 net profit, up from a $57.2 million Q2 loss.
- 2The profit was driven by a $197.3 million gain on digital asset holdings.
- 3The company mined 891 bitcoin at an average production cost of $42,100 each.
- 4Total bitcoin holdings grew 5% to roughly 8,427 BTC by the end of September.
American Bitcoin Corp reported a third-quarter net income of about $126 million on Wednesday, swinging from a $57.2 million loss in the previous quarter. The swing came as price increases on its corporate treasury offset a drop in mining margins and higher seasonal power expenses.
According to Bitcoin Magazine, the Miami-based mining and treasury company recorded a $197.3 million mark-to-market gain on its digital assets for the three months ending Sept. 30. That compared with a $71.2 million loss on the same accounting line in the second quarter. Operating income for the period reached $191.8 million, while other expenses included a $64.3 million loss on financial derivatives.
The company mined 891 bitcoin during the third quarter, down from 932 bitcoin in the second quarter. The cost to produce each bitcoin rose to roughly $42,100 from $36,500 in the prior period, while revenue per bitcoin mined slipped to $71,100 from $71,900. Mining revenue fell to $63.4 million from $67.0 million, and gross profit contracted to $25.8 million, representing a 41% profit margin compared with 49% in the second quarter.
Despite higher production costs, American Bitcoin expanded its reserve by roughly 425 bitcoin during the quarter by selling only a portion of its production to cover operating expenses. Total holdings reached 8,427 bitcoin at quarter-end, which includes 3,090 bitcoin pledged for hardware purchases under agreements with Bitmain. The owned fleet comprised 89,242 bitcoin miners with a total operating capacity of roughly 28.1 exahashes per second.
Chief Executive Mike Ho said the business expanded satoshis per share by 5% to 11,572 without issuing new stock through its at-the-market equity program or buying coins on open exchanges. Chief Strategy Officer Eric Trump said the quarter delivered positive net income and increased the treasury backing each share. Adjusted EBITDA swung to $221 million from an EBITDA loss of $45.0 million in the previous quarter.
American Bitcoin was launched in 2025 by majority owner Hut 8 Corp in partnership with Eric Trump and Donald Trump Jr, with the Trump family holding a stake of roughly 20%. Shares of American Bitcoin dropped over 5.5% on Nasdaq following the announcement, while spot bitcoin traded above $80,500.
Hut 8 reported its own third-quarter earnings on the same day, confirming that it sold bitcoin to fund share buybacks while moving its primary mining operations into American Bitcoin. American Bitcoin completed a 1-for-15 reverse stock split on July 2 earlier this year.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.