American Bitcoin’s $126M turnaround has $BTC doing the heavy lifting

American Bitcoin, the Trump-family-backed Nasdaq-listed mining venture majority-owned by Hut 8, reported net income of roughly $126 million for the quarter ended Sept. 30, reversing a $57.2 million net loss in the second quarter. Adjusted EBITDA reached about $221 million, compared with a $45 million loss in the prior quarter. The company earned a $197 million gain on digital assets as Bitcoin’s value rose during the period.

The company increased its Bitcoin reserve to approximately 8,427 BTC, up roughly 425 coins, or 5%, from the end of June, and raised its “satoshis per share,” a measure of how much Bitcoin backs each share, by about 5%. American Bitcoin achieved the increase without purchasing Bitcoin or issuing shares through its at-the-market program during the quarter, instead relying on mining output. “These are significant results, particularly in a challenging digital asset market,” said co-founder and chief strategy officer Eric Trump. CEO Mike Ho credited “a disciplined, Bitcoin-denominated operating business,” saying the company continued “mining Bitcoin at a structural discount to spot.”

Mining performance weakened as production declined to about 891 BTC from 932 BTC in the prior period, while the cost to mine rose to roughly $42,100 per Bitcoin from $36,500 because of higher seasonal power costs. Gross margin slipped to 41% from 49%. American Bitcoin ended the quarter with approximately 89,242 miners and 28.1 exahashes per second of capacity.

The results followed the company’s record second quarter, when it produced 932 Bitcoin and expanded its reserve to more than 8,000 BTC worth roughly $512 million. American Bitcoin ended June with approximately 8,002 BTC, up about 14% from roughly 7,021 BTC at the end of March. Its stock has struggled since going public through a merger with Gryphon Digital Mining, hitting new lows and prompting a 1-for-15 reverse stock split in July, with shares trading well below their debut price. The third-quarter profit was driven largely by the accounting gain tied to Bitcoin’s price rather than core mining operations.