American Bitcoin’s third-quarter earnings reversal came with an important distinction: much of the improvement reflected a rise in the book value of its Bitcoin holdings, while its mining operation produced fewer coins at a higher cost.
As reported by Decrypt on November 6, 2026, at 02:25:31 UTC+8, the Trump-family-backed company posted roughly $126 million in net income for the quarter ended September 30, compared with a $57.2 million net loss in the second quarter. Adjusted EBITDA reached about $221 million, versus a $45 million loss in the preceding quarter.
A $197 million gain on digital assets accounted for much of that swing. The headline profit therefore should not be read as an equivalent improvement in the underlying mining business.
Bitcoin reserves grew, but mining economics weakened
American Bitcoin, which trades on Nasdaq as ABTC and is majority-owned by miner Hut 8, increased its reserve to approximately 8,427 BTC. That was about 425 BTC, or 5%, above its holdings at the end of June.
Its “satoshis per share”—a measure of how much Bitcoin backs each share—also rose about 5%. According to the report, the company bought no Bitcoin and issued no new shares through its at-the-market program during the quarter, relying instead on mining output to build its reserve.
The operating figures showed a more difficult quarter:
- Bitcoin mined: approximately 891 BTC, down from 932 BTC in the preceding quarter.
- Cost to mine: roughly $42,100 per Bitcoin, up from $36,500, which the company attributed to higher seasonal power costs.
- Gross margin: 41%, down from 49%.
- Quarter-end fleet: approximately 89,242 miners, with 28.1 exahashes per second of capacity.
Management’s message and the accounting distinction
Co-founder and chief strategy officer Eric Trump described the results as significant, particularly in a challenging digital asset market, highlighting both profit and Bitcoin-per-share growth. CEO Mike Ho credited “a disciplined, Bitcoin-denominated operating business” and said the company continued “mining Bitcoin at a structural discount to spot.”
Those management assessments sit alongside weaker reported mining output, higher production costs and a lower gross margin. The reserve growth was documented, but the earnings turnaround depended heavily on Bitcoin’s valuation gain rather than stronger core mining performance.
Profit followed a volatile stretch for shareholders
The report followed an earlier record mining quarter in which American Bitcoin crossed 8,000 BTC in holdings. Its stock nevertheless struggled, reaching new lows and prompting a 1-for-15 reverse stock split in July. Shares had fallen well below their debut price following the company’s public listing through a merger with Gryphon Digital Mining.
The central risk is the same mechanism that lifted the reported profit: exposure to Bitcoin’s price. A downturn could reverse valuation gains and push earnings back into a loss, even as the company continues mining and accumulating coins.