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American Bitcoin swings to a $126 million Q3 profit on bitcoin holdings gains as mining revenue slips
Summary
American Bitcoin Corp., the Hut 8 majority-owned bitcoin miner co-founded with Trump family backing, reported about $126 million in third-quarter net income, reversing a $57.2 million loss in the prior quarter, The Block, CoinDesk and Bitcoin Magazine reported.
The swing rested largely on a roughly $197.3 million accounting gain on digital assets, after a $71.2 million loss on that line in the second quarter, all three outlets said.
Mining revenue fell to about $63.4 million from about $67 million as production dropped to roughly 891 BTC from 932 BTC and the cost to mine rose to about $42,100 per bitcoin from about $36,500 on higher summer power prices, the outlets reported; CoinDesk said revenue missed analysts' average forecast of about $74 million while EPS of $1.73 beat the 26-cent estimate.
Holdings rose to about 8,427 BTC at the end of September from about 8,002 BTC, with no open-market purchases and no shares issued through the at-the-market program; the company said it sold some production to cover operating costs while adding about 425 BTC to its reserve, The Block and Bitcoin Magazine reported.
Updates
- Update, : Update: Decrypt reported the swing to profit was driven largely by a $197 million gain on the miner's bitcoin holdings.
- Update, : Update (Nov. 5, afternoon): Cointelegraph reported mining revenue fell 5.5% to $63.4 million, the cost to mine one BTC rose about 15% to $42,100, gross mining profit fell to $25.8 million from $33 million, and excluding bitcoin-holdings gains the miner would have shown an operating loss of about $5.5 million, as rivals lean into AI.
Key facts
- Adjusted EBITDA was about $220.8–$221 million, versus a roughly $45 million loss in the second quarter.
- Gross profit fell to about $25.8 million (41% margin) from about $33 million (49%).
- CEO Mike Ho said the company "continued mining bitcoin at a structural discount to spot, grew our strategic reserve, and increased Satoshis Per Share by approximately 5%."
- Eric Trump said in the company statement: "These are significant results, particularly in a challenging digital asset market, and they reflect the discipline and long-term conviction behind this business."
- Holdings include about 3,090 BTC pledged for miner purchases; the owned fleet stood at about 89,242 machines and roughly 28.1 EH/s at quarter-end.
- CoinDesk said ABTC shares closed 5.6% lower at $6.24 on Wednesday and traded about 1.75% higher in pre-market Thursday; The Block put the extended-hours rebound at 2.4% and said the stock was down 76% year-to-date.
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