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FIGR_HELOC $1.05 Bitcoin · Explained
American Bitcoin posts $126 million Q3 profit on bitcoin holdings gain
The Hut 8-backed miner swung to net income as a $197.3 million digital-asset gain outweighed weaker mining revenue and higher power costs.
Key takeaways
- Valuation drove the result. A $197.3 million gain on digital assets, not mining, produced most of the quarterly profit.
- Mining got costlier. The average cost to mine one bitcoin rose to about $42,100 from $36,500 as seasonal power expenses cut gross margin to 41%.
- Reserve kept growing. Holdings rose by about 425 BTC to roughly 8,427 BTC, including about 3,090 BTC pledged under Bitmain agreements.
What happened
American Bitcoin Corp. (Nasdaq: ABTC) reported about $126 million in third-quarter net income on Wednesday, a turnaround from the $57.2 million loss it recorded in the previous quarter, according to Bitcoin Magazine and Crypto.news. The Miami-based miner and treasury company said the profit was driven mainly by a $197.3 million gain on its bitcoin holdings rather than by mining revenue.
Mining revenue came in at about $63.4 million, down from roughly $67.0 million in the second quarter. The company produced about 891 bitcoin during the quarter, compared with about 932 in the prior period, and said it sold part of that output to cover operating costs while retaining the rest for its reserve.
Gross profit fell to about $25.8 million, a 41% margin, from about $33.0 million and 49% a quarter earlier, as seasonal power costs rose across its sites. The average cost to mine one bitcoin climbed to about $42,100 from about $36,500, while revenue per bitcoin mined slipped to about $71,100 from about $71,900.
Adjusted EBITDA was about $221 million, compared with a loss of about $45.0 million in the second quarter. Operating income was about $191.8 million, and other expense included a $64.3 million loss on derivatives, primarily tied to bitcoin redemption and put options linked to mining equipment supplier Bitmain, per Crypto.news.
First $85.6KLatest $80.3K-6.2% over the period
Points are daily observations, not closing prices.
Why it matters
The results illustrate how fair-value accounting can shape the earnings of corporate bitcoin holders. American Bitcoin marks its coins to market each reporting period, so price moves flow through the income statement even when no coins are sold. Crypto.news reported that the filing attributes the swing to bitcoin rising from roughly $59,847 at June 30 to $83,415 at September 30, along with growth in the reserve.
Strip out that mark-to-market move and the operating picture is quieter: production declined, margins narrowed and mining revenue was slightly below the $64.2 million recorded a year earlier despite higher output. That gap between paper gains and mining economics is likely to draw scrutiny from investors assessing how durable the company's profitability is if bitcoin prices stall while power costs stay elevated.
What the data shows
Management's preferred metric, satoshis per share, rose about 5% to roughly 11,572 from about 10,989 at the end of June. CEO Mike Ho said the company expanded its reserve without buying bitcoin on the open market or issuing shares through its at-the-market program during the quarter. Crypto.news noted that the SEC filing nonetheless shows 7.76 million Class A shares sold through that program over the first nine months of 2026, generating $144.7 million in gross proceeds before costs, and $72.4 million in net cash used by operating activities over the same period.
Hut 8 reported its own third-quarter results the same day, posting $189.5 million in net income including $413.8 million in primarily unrealized digital asset gains, and confirmed bitcoin sales used to fund share buybacks while shifting mining into the American Bitcoin vehicle. Riot Platforms, meanwhile, reported $181.4 million in quarterly revenue, including $116 million from bitcoin mining.
Background
American Bitcoin is majority-owned by Hut 8 Corp. and was co-founded with backing from the Trump family; Eric Trump serves as co-founder and chief strategy officer, and Donald Trump Jr. helped launch the venture with Hut 8 in 2025. Earlier Bitcoin Magazine coverage put the Trump family's stake near 20%, with Hut 8 holding the remainder. The company completed a 1-for-15 reverse stock split on July 2 to address Nasdaq's minimum share-price requirements.
The third-quarter reserve grew by about 425 bitcoin, or about 5%, to roughly 8,427 BTC as of September 30, up from about 8,002 BTC at the end of June. That total includes about 3,090 BTC pledged for miner purchases under agreements with Bitmain. The company valued its total reserve at $702.9 million at quarter-end, compared with $478.9 million in June, according to Crypto.news. Its owned fleet stood at about 89,242 miners with roughly 28.1 EH/s of capacity.
What to watch
The release leaves open whether another quarter of bitcoin price gains can keep paper profits ahead of higher power costs and thinner mining margins. At the time of writing, bitcoin traded above $80,500 and American Bitcoin shares were down more than 5.5% on the day, according to Bitcoin Magazine.
Questions readers ask
Why did American Bitcoin post a profit despite weaker mining?
Most of the $126 million net income came from a $197.3 million gain on the value of its bitcoin holdings, which the company records at fair value each quarter, rather than from mining revenue.
How much bitcoin does American Bitcoin hold?
About 8,427 BTC as of September 30, up roughly 425 BTC from the end of June. Around 3,090 BTC of that total is pledged under miner purchase agreements with Bitmain.
What happened to mining costs in the quarter?
The average cost to mine one bitcoin rose to about $42,100 from about $36,500, which the company attributed mainly to seasonal electricity expenses, pulling gross margin down to 41%.
