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American Bitcoin’s $126 Million Quarterly Profit Comes From Its Bitcoin Treasury Gain
Without a $197.3 million accounting gain on the bitcoin it holds, the Eric Trump co-founded miner would have lost about $70 million before taxes, as output, revenue and margins slipped from the second quarter.
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American Bitcoin Corp., a miner co-founded by Eric Trump, posted a third-quarter profit of about $126 million on November 4, versus a second-quarter loss near $57.2 million. The filing links the swing to a $197.3 million gain on its bitcoin holdings, partly offset by a $64.3 million derivatives loss. Without that gain, the company would have posted a pre-tax loss near $69.8 million, by Unchained's calculation from company figures. Mined bitcoin fell to about 891 from 932, and mining revenue dropped to $63.4 million. Gross margin narrowed to 41% from 49%, while cost per coin rose about 15% to roughly $42,100, which the company mainly blamed on higher seasonal power costs. Holdings reached about 8,427 bitcoin.
Why it matters: It shows how a miner's reported profit can hinge on bitcoin valuation changes in its treasury rather than on mining operations.
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