American Bitcoin’s $126 Million Profit Rode Bitcoin’s Rally. Q4 Is Testing It

American Bitcoin (ABTC) earned $126 million in the third quarter (Q3), powered by a $197.3 million Bitcoin (BTC) gain. Without it, the miner’s operations posted a small loss. 

The company, co-founded by Eric Trump, released its earnings after the US market closed on November 4. Its stock had already fallen 5.6% from the prior close that day.

How a Bitcoin Rally Rescued a Thin Mining Quarter

CEO Mike Ho said on the earnings call that the gain was non-cash, reflecting BTC’s roughly 39% rise in Q3.

The filing shows operating income of $191.8 million, which includes the $197.3 million digital asset gain. Stripped of that gain, operations lost about $5.5 million.

Meanwhile, the mining business weakened. Revenue slipped to $63.4 million from $67 million in Q2. Gross margin fell to 41% from 49%.

Higher seasonal power costs contributed, the company said. They also lifted the cost to mine one BTC to $42,100 from $36,500.

The company mined about 891 BTC, down from 932 in Q2. On its earnings call, it said it sold about 465 BTC to cover costs. As a result, the reserve grew by about 425 BTC to 8,427 BTC.

Ho noted the reserve grew without at-the-market share sales or BTC purchases.

“Despite seasonal power cost pressures, we continued mining Bitcoin at a structural discount to spot, grew our strategic reserve, and increased Satoshis Per Share by approximately 5%, all without issuing shares through our ATM program or purchasing Bitcoin during the quarter,” he said.