American Bitcoin Reports $126M Q3 Profit on Bitcoin Gains, Misses Revenue Estimates
Trump-backed miner American Bitcoin, trading as ABTC on Nasdaq, reported a roughly $126 million net profit for the quarter ended September 30, reversing a prior-quarter loss. Sources differ on the profit's drivers and attribute the headline figure largely to a $197 million gain on digital assets, while revenue of $63.4 million missed analyst forecasts.
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The Headline Result and Its Source
American Bitcoin reported net income of about $126 million for the quarter ended September 30, according to Decrypt, compared with a $57.2 million net loss in the second quarter. Adjusted EBITDA was roughly $221 million, up from a $45 million loss. Decrypt attributes most of the swing to a $197 million gain on the company's digital asset holdings as Bitcoin's price rose during the period.
CoinDesk reported the same profit figure but framed the quarter around its operating shortfall. Revenue fell to $63.4 million and missed analysts' estimates, which CoinDesk links to lower bitcoin production and higher summer electricity prices that raised mining costs. The two outlets agree on the profit and the revenue miss, but they emphasize different parts of the same result.
Mining Operations Weakened
The company mined about 891 bitcoin in the quarter, down from 932 in the prior period, per Decrypt. Its cost to mine rose to roughly $42,100 per bitcoin from $36,500, which the company attributed to higher seasonal power costs. Gross margin slipped to 41% from 49%. The company ended the quarter with about 89,242 miners and 28.1 exahashes per second of capacity.
These figures explain CoinDesk's revenue miss. Lower output and higher power costs compressed the core business, while the reported profit came from a non-operating accounting gain.
Bitcoin Reserve and Per-Share Metrics
The company grew its bitcoin reserve to about 8,427 BTC, up roughly 425 coins, or 5%, from the end of June. It also raised its satoshis-per-share measure by about 5%. Decrypt notes the company did this without buying bitcoin or issuing new shares through its at-the-market program, relying on its own mining output. Management cited a disciplined, bitcoin-denominated operating model and said it continues mining at a structural discount to spot.
Context and Caveats
The stock has been weak. Decrypt reports that shares hit new lows, prompting a 1-for-15 reverse stock split in July, and have fallen well below their debut price since the company went public through a merger with Gryphon Digital Mining. The company is majority-owned by miner Hut 8.
Decrypt cautions that the profit depends heavily on the bitcoin price. A decline in bitcoin could reverse the figure into a loss, since the gain is an accounting result rather than a product of core mining operations.
Why It Matters
For Traders
The profit depends on a bitcoin price gain, so short-term moves in BTC could shift ABTC's reported results and sentiment quickly.
For Investors
Operating weakness in mining, with lower output and higher costs, matters more over time than a one-quarter accounting gain.
For Builders
Rising power costs cut mining margins, so operators building on mining economics should model seasonal electricity pricing closely.
This article is for information only and is not financial advice. Read the full disclaimer.
