American Bitcoin reports $126 million Q3 profit driven by bitcoin gain

American Bitcoin Corp., which trades on Nasdaq under the ticker ABTC, posted third-quarter net income of about $126 million, according to Bitcoin Magazine. That compares with a net loss of $57.2 million in the second quarter. BeInCrypto said the company released its results after U.S. markets closed on November 4, and that its shares had already dropped 5.6% from the prior close that day. The Block's brief account gave the same headline figures and described the move as a swing into profit driven by digital asset gains.

The company is a Miami-based miner and treasury firm. Bitcoin Magazine said Hut 8 Corp. holds a majority stake in it, and described the firm as having Trump family backing at its founding. BeInCrypto named Eric Trump as a co-founder, while Bitcoin Magazine identified him as co-founder and chief strategy officer. On mining, Bitcoin Magazine said the company produced about 891 bitcoin in the quarter against roughly 932 in the second quarter, and BeInCrypto gave the same figures. The cost to mine one bitcoin rose to about $42,100 from $36,500, with both publishers citing seasonal power costs. Mining revenue slipped to $63.4 million from $67.0 million.

The profit came mostly from a gain that BeInCrypto called non-cash. Operating income came to roughly $191.8 million, a figure that includes a $197.3 million gain on digital assets, according to BeInCrypto, and Bitcoin Magazine cited the same gain. Bitcoin Magazine also noted a $64.3 million loss on derivatives in other expense. BeInCrypto calculated an operating loss of about $5.5 million without the digital asset gain, while Bitcoin Magazine called operations quieter without that mark-to-market move and gave no figure. Gross margin fell to 41% from 49%, per both publishers. Adjusted EBITDA differed slightly between the two: about $221 million per Bitcoin Magazine and $220.8 million per BeInCrypto, the latter keeping the gain while adding back the derivatives loss.

BeInCrypto said the company sold about 465 bitcoin to cover costs, while its reserve grew by about 425 to 8,427. Ho said the reserve rose without share sales or bitcoin purchases. BeInCrypto also reported, citing Coinglass, that bitcoin opened the fourth quarter at $83,553.85 and traded near $80,705 at the time of its report. The reports do not describe company plans beyond the fourth quarter.