American Bitcoin Posts $126M Q3 Profit on Bitcoin (BTC) Holdings Gain

Mark-to-Market Gains Outrun Mining Revenue

American Bitcoin (BTC) Corp. (Nasdaq: ABTC) reported roughly $126 million in net income for the third quarter on Wednesday, a swing from a $57.2 million loss in the second quarter. The company's official press release puts the reversal down to a $197.3 million gain on its bitcoin holdings, booked as the market value of the treasury climbed through the quarter. What the disclosure does not settle is how repeatable that formula is: the same statement shows revenue per mined coin slipping and the cost to mine each coin rising, so the quarter's profit rests on price appreciation rather than on the mining business itself. Adjusted EBITDA reached roughly $221 million, against a $45.0 million loss a quarter earlier, and operating income landed at about $191.8 million. Production-side figures moved the other way. Mining revenue fell to about $63.4 million from roughly $67.0 million in the second quarter, and gross profit came to about $25.8 million, a 41% margin, down from $33.0 million and 49% as seasonal power prices lifted costs across its sites. Output slid to about 891 Bitcoin (BTC) from roughly 932, which the company had billed as its highest quarterly haul on record. The prior quarter's loss had come alongside that record haul and a rise in holdings to about 8,002 BTC. Cost per mined coin rose to about $42,100 from about $36,500, while revenue per coin eased to about $71,100 from $71,900. The income statement carries one more reminder that the treasury line works in both directions: a $64.3 million loss on derivatives sat in other expense, and the digital-assets line itself posted a $71.2 million loss in the second quarter. With the Bitcoin (BTC) price above $80,500 when the results landed, the mark-to-market tailwind was generous; the filing leaves open whether it stays that way in a flatter market.

The reserve was the figure management chose to foreground. Holdings rose by about 425 bitcoin, roughly 5%, to about 8,427 BTC as of September 30, a figure that covers about 3,090 bitcoin pledged toward miner purchases under the Bitmain agreements. That total places the company in the upper tier of corporate whales among today's Bitcoin accumulation vehicles, a rank it has climbed since its Nasdaq debut. The pledged coins are earmarked for Bitmain hardware, meaning they fund future miners rather than sit idle on the balance sheet. The company said it sold a portion of production to cover operating costs while still adding to its strategic reserve, and Chief Executive Mike Ho framed the quarter as accumulation at a structural discount to spot: satoshis per share climbed roughly 5%, from about 10,989 at end-June to about 11,572, with no shares issued through the at-the-market program and no Bitcoin (BTC) bought on the open market. The share math reflects a 1-for-15 reverse split effected on July 2. Its owned fleet totaled about 89,242 miners carrying roughly 28.1 EH/s of Proof of Work capacity at quarter-end. American Bitcoin remains majority-owned by Hut 8, which reported its own third-quarter results the same day and confirmed it sold bitcoin to fund share buybacks while moving mining into the American Bitcoin vehicle. Co-founder and chief strategy officer Eric Trump pointed to the net income and Adjusted EBITDA figures alongside a larger reserve and more bitcoin per share; he and Donald Trump Jr. helped launch the venture with Hut 8 in 2025, and earlier reporting has placed the Trump family stake near 20%. The stock was still down more than 5.5% in Wednesday trading, even as the coin itself pressed the decisive test near $81,000 that our coverage tracks.

The Question the Release Leaves Open

The release invites a simple read: the treasury did the earning. Strip the $197.3 million mark-to-market gain out and what remains is a mining business with a 41% gross margin, rising power costs and about 41 fewer coins produced, the same profile that produced a $71.2 million loss on the digital-assets line one quarter earlier. The $64.3 million derivatives loss sits in the same column. Derivatives data places a long liquidation band at $73,000–$76,000 below spot, mapping the downside as clearly as the upside, while separate coverage ties the next leg to a rebound after the midterm sweep that would renew the paper-gain engine. The question the release does not answer is what this income statement looks like in a quarter when bitcoin does not rise.