American Bitcoin Posts $126 Million Quarterly Profit on $197 Million Bitcoin Gain

On Wednesday, American Bitcoin Corp. (Nasdaq: ABTC) reported third-quarter net income of about $126 million, a turnaround from the $57.2 million loss it posted in the previous quarter. The swing was tied mainly to a $197.3 million gain on the company's bitcoin holdings, not to mining revenue.

The Miami-based bitcoin miner and treasury company is majority owned by Hut 8 Corp. and was co-founded with backing from the Trump family. It mined about 891 bitcoin during the quarter at a cost of roughly $42,100 per coin and ended September with approximately 8,427 BTC.

Mining revenue declined to about $63.4 million from about $67.0 million in the second quarter. Gross profit was about $25.8 million, a 41% margin, versus about $33.0 million and 49% a quarter earlier, as seasonal power costs increased across its facilities.

Adjusted EBITDA reached about $221 million, against an Adjusted EBITDA loss of roughly $45.0 million in the second quarter, as its release said.

Eric Trump, who co-founded American Bitcoin and serves as its chief strategy officer, said the quarter produced the net income and Adjusted EBITDA figures while also expanding the bitcoin reserve and bitcoin per share. Chief Executive Mike Ho said the company continued to mine at a structural discount to spot, lifting satoshis per share by about 5% without tapping the at-the-market program for share sales or making open-market bitcoin purchases.

A paper gain powered American Bitcoin's quarter

The income statement makes the reason clear. The company recorded a $197.3 million gain on digital assets in the third quarter, after taking a $71.2 million loss on that line in the second. Operating income came to about $191.8 million, while other expense included a $64.3 million loss on derivatives.

With the mark-to-market move set aside, the operating story is more subdued. Revenue per bitcoin mined was about $71,100, down slightly from about $71,900 in the second quarter, while the cost to mine rose to about $42,100 from about $36,500, the company said.

Production of about 891 bitcoin was less than the roughly 932 coins mined in the second quarter, which the company had called its highest quarterly haul on record when it reported a $57.2 million second-quarter loss. That report also showed holdings had climbed to about 8,002 BTC.

American Bitcoin said it sold some of its production to fund operating costs while still adding to its strategic reserve. Holdings rose by about 425 bitcoin, or about 5%, to roughly 8,427 as of Sept. 30. That total includes roughly 3,090 bitcoin pledged toward miner purchases as part of its Bitmain agreements.

Reserve grows, satoshis per share rise

Management's preferred metric is satoshis per share, which rose about 5% to roughly 11,572 from about 10,989 at the end of June. The share count reflects a 1-for-15 reverse stock split carried out earlier this year on July 2.

At quarter-end, the company's owned fleet consisted of about 89,242 bitcoin miners with roughly 28.1 EH/s of capacity. Hut 8 retains majority ownership of American Bitcoin and reported its own third-quarter results the same day, saying bitcoin sales had funded share buybacks as mining shifted into the American Bitcoin vehicle.

Eric Trump and Donald Trump Jr. helped launch the venture with Hut 8 in 2025; coverage in Bitcoin Magazine previously estimated the Trump family's stake at close to 20%, with Hut 8 holding the remainder. The company has moved up the corporate treasury rankings as it stacked coins after its Nasdaq debut.

The release leaves open whether another quarter of bitcoin price gains can keep paper profits ahead of higher power costs and slimmer mining margins.

As of this writing, bitcoin traded above $80,500, and American Bitcoin shares were down more than 5.5% on the day.