American Bitcoin Reports $126M Q3 Profit on Bitcoin Price Gain, Not Mining
American Bitcoin (ABTC) reported about $126 million in third-quarter net income, swinging from a $57.2 million loss in the prior quarter. Sources agree the profit rested mainly on a roughly $197.3 million non-cash gain on its bitcoin holdings, while mining operations weakened.
Written by CoinArticle’s AI Newsroom · from 2 cited sources. How we work
Profit Came From Holdings, Not Operations
American Bitcoin Corp. (Nasdaq: ABTC) reported third-quarter net income of about $126 million, according to its results released November 4, after a $57.2 million loss in the second quarter. Both Bitcoin Magazine and Crypto Briefing attribute the swing primarily to a gain of roughly $197.3 million on the company's digital asset holdings, a mark-to-market move rather than mining income. Adjusted EBITDA reached about $221 million, compared with a loss of about $45 million in the prior quarter, per the company's release.
The two sources differ on the cause of that gain. Crypto Briefing ties it directly to a roughly 39% rise in Bitcoin's price during the quarter. Bitcoin Magazine reports the gain without giving that percentage, and notes that the company also booked a $64.3 million loss on derivatives within other expense. Neither outlet provides a source for the 39% figure beyond its own reporting, so readers should treat it as the publication's calculation rather than a company disclosure.
Mining Metrics Weakened
Mining revenue was about $63.4 million, down from about $67.0 million in the second quarter, and gross profit fell to about $25.8 million. Gross margin dropped to roughly 41% from about 49%, which the company attributed to higher seasonal power costs across its sites. Bitcoin Magazine puts the margin decline in the context of rising costs to mine, which rose to about $42,100 per coin from about $36,500.
Production also slipped to about 891 bitcoin from roughly 932 in the prior quarter, which the company had described as a record. Revenue per bitcoin mined was about $71,100, essentially flat against the prior quarter's $71,900. Crypto Briefing adds that the quarter's output still represents about 21% of total production since the company launched in March 2025.
Treasury Growth and Pledged Holdings
American Bitcoin sold part of its output to cover operating costs and added about 425 BTC to its reserve, bringing total holdings to roughly 8,427 BTC as of September 30. Both sources note that this total includes about 3,090 BTC pledged under agreements with mining hardware supplier Bitmain. Crypto Briefing argues that pledged coins are not the same as freely held reserves and should be weighed differently by investors.
Management's preferred measure, satoshis per share, rose about 5% to roughly 11,572. Bitcoin Magazine notes this follows a 1-for-15 reverse stock split on July 2, and that the increase came without issuing shares through its at-the-market program or buying bitcoin on the open market. Parent Hut 8 Corp., which holds the majority stake, reported its own results the same day.
Market Reaction
Bitcoin Magazine reports Bitcoin trading above $80,500 at the time of writing, with ABTC shares down more than 5.5% that day. Neither source ties the share move directly to the earnings release. Investors weighing the quarter may find the operating data and the mark-to-market gain pointing in different directions.
Why It Matters
For Traders
ABTC's profit is driven by a non-cash Bitcoin mark-to-market gain, so near-term share moves may track BTC price rather than the weaker mining margins.
For Investors
Growing holdings while selling only operating needs signals a reserve-building strategy, but pledged Bitmain coins should be separated from freely held reserves when judging it.
For Builders
Rising cost to mine, now about $42,100 per coin, shows how seasonal power costs compress miner margins and should inform hosting and energy assumptions.
This article is for information only and is not financial advice. Read the full disclaimer.
