American Bitcoin Corp. has reported a $126 million third-quarter profit after a $197.3 million gain in the value of its Bitcoin holdings outweighed weaker mining revenue and higher electricity costs.
Summary
- American Bitcoin reported $126 million in third-quarter net income, reversing a $57.2 million second-quarter loss.
- A $197.3 million digital-asset valuation gain contributed to the profit, while a $64.3 million derivatives loss partly offset it.
- Mining revenue fell to $63.4 million, with Bitcoin production declining from 932 BTC to 891 BTC.
- Bitcoin holdings increased by 425 BTC to 8,427 BTC, including 3,090 BTC pledged under Bitmain equipment agreements.
- Mining costs climbed to $42,100 per Bitcoin as seasonal electricity expenses reduced the gross margin to 41%.
The Eric Trump-backed miner said in its November 4 earnings release that net income for the three months ended September 30 compared with a $57.2 million loss in the second quarter. Its SEC filing shows the profit was driven primarily by changes in Bitcoin’s value, while quarterly mining production and gross profit declined.
Bitcoin valuation gains lift American Bitcoin’s earnings
The company’s digital-asset gain totaled $197.3 million, reversing a $71.2 million loss on Bitcoin holdings in the preceding quarter. Its filing attributes the change to Bitcoin’s price rising from approximately $59,847 at June 30 to $83,415 at September 30, alongside growth in its reserve.
American Bitcoin records its Bitcoin at fair value each reporting period. Changes in market prices therefore pass through its income statement even when the company has not sold the coins. The quarterly profit was not entirely generated by mining operations or Bitcoin sales.
The filing records a separate $64.3 million loss on derivatives, primarily related to Bitcoin redemption and put options linked to mining equipment supplier Bitmain. Despite that expense, adjusted EBITDA reached $220.8 million, compared with an adjusted EBITDA loss of $45 million in the second quarter.
“Despite seasonal power cost pressures, we continued mining Bitcoin at a structural discount to spot,” CEO Mike Ho said.
He explained that the company had expanded its reserve without purchasing Bitcoin or issuing shares through its at-the-market equity program during the quarter.
Higher power costs reduce mining margins
Mining generated $63.4 million in revenue, down from $67 million in the second quarter. The company produced approximately 891 BTC, compared with 932 BTC in the preceding three months, while average revenue per Bitcoin mined slipped from $71,900 to $71,100.
The average cost to mine one Bitcoin climbed to $42,100 from $36,500. American Bitcoin attributed the increase primarily to seasonal electricity expenses at its sites, which reduced quarterly gross profit from $33 million to $25.8 million.
Gross margin fell from 49% to 41%. The company reported selling part of its mined Bitcoin to cover operating expenses, retaining the remainder to expand its reserve.
Mining revenue was slightly below the $64.2 million recorded a year earlier, despite production rising from approximately 563 BTC in the third quarter of 2025. The filing attributes the difference to lower average revenue per Bitcoin mined, partly offset by additional machines operating at the Vega and Drumheller sites.
At September’s end, American Bitcoin owned approximately 89,242 mining machines with 28.1 exahashes per second of capacity. Its fleet had reached that capacity in April following the installation of additional mining equipment.
American Bitcoin reserve increases to 8,427 BTC
The company’s Bitcoin reserve grew from approximately 8,002 BTC at the end of June to 8,427 BTC at September 30, a net addition of around 425 BTC.
Of the total holdings, 3,090 BTC was pledged under miner purchase arrangements with Bitmain. The SEC filing separates that amount into 2,385 BTC classified as current assets and 705 BTC classified as noncurrent assets. Another 5,337 BTC was held in custody.
American Bitcoin valued its total reserve at $702.9 million at quarter-end, compared with $478.9 million in June. The change includes retained mining output and changes in the market value of coins already held.
Its satoshis per share increased approximately 5%, from 10,989 to 11,572. The measure divides the Bitcoin reserve, expressed in satoshis, by outstanding common shares, adjusted for the company’s July 2 reverse stock split.
The latest results follow the company’s second-quarter financial loss, when it reported a $71.2 million decline in the value of its digital assets.
SEC filing shows earlier share sales and cash outflows
Although American Bitcoin issued no shares under its at-the-market program during the third quarter, its SEC filing shows that it sold 7.76 million Class A shares through the program during the first nine months of 2026.
Those transactions generated $144.7 million in gross proceeds before issuance costs. The company had established the program in September 2025 to sell up to $2.1 billion in shares over time.
The company’s digital-asset records show no Bitcoin purchases between June 30 and September 30, consistent with management’s statement that the reserve increased through mining.
American Bitcoin reported $72.4 million in net cash used by operating activities over the first nine months of 2026, compared with $43.1 million in the corresponding period of 2025.
Its cash-flow statement separately records $65.3 million in digital-asset purchases during the first nine months of 2026.
American Bitcoin previously expanded its reserve past 8,000 BTC in July, after implementing a 1-for-15 reverse stock split to address Nasdaq’s minimum share-price requirements.
Other publicly traded Bitcoin miners reported their third-quarter results during the same earnings period. Hut 8 posted $189.5 million in net income, including $413.8 million in primarily unrealized digital asset gains.
Meanwhile, Riot Platforms reported $181.4 million in quarterly revenue, including $116 million from Bitcoin mining.
