American Bitcoin Corp Swings to $126M Profit on $197M BTC Holdings Gain

American Bitcoin Corp profit — American Bitcoin Corp (Nasdaq: ABTC) reported a $126 million net profit for Q3, a sharp reversal from a $57.2 million loss the prior quarter, driven primarily by a $197.3 million gain on its bitcoin holdings.

The miner produced approximately 891 BTC during the quarter at an average cost of $42,100 per coin, ending September with a strategic reserve of 8,427 bitcoin. Mining revenue was $63.4 million, slightly down from the previous quarter, with gross profit margins narrowing to 41% due to seasonal power cost increases.

Co-founder and Chief Strategy Officer Eric Trump stated the quarter delivered strong net income and adjusted EBITDA while growing the company’s bitcoin reserve and satoshis per share. CEO Mike Ho noted the company mined at a structural discount to the spot price and increased satoshis per share by about 5% without issuing new shares or buying bitcoin on the open market.

Excluding the mark-to-market gain on its bitcoin, the company’s operational performance was more subdued. Production dipped from the record high in Q2, and the cost to mine rose. The company sold a portion of its mined bitcoin to cover costs but still added approximately 425 BTC to its holdings in the quarter.