American Bitcoin Corp Reports $126 Million Net Income for Third Quarter

American Bitcoin Corp. (Nasdaq: ABTC) announced its third-quarter financial results on Wednesday, revealing a net income of approximately $126 million. This marks a significant turnaround from the $57.2 million loss reported in the previous quarter. The Miami-based mining firm, which operates as a majority-owned subsidiary of Hut 8 Corp., attributed this positive swing primarily to a $197.3 million gain on its digital asset holdings rather than direct mining revenue.

Financial performance of American Bitcoin Corp

While the company saw a surge in net income, its core mining operations faced headwinds. Mining revenue for the quarter reached $63.4 million, a decrease from the $67.0 million recorded in the second quarter. Gross profit margins also tightened to 41%, down from 49% in the prior period, as the company contended with rising seasonal power costs across its mining sites. The cost to mine each bitcoin rose to roughly $42,100, compared to $36,500 in the second quarter, while revenue per coin mined dipped slightly to approximately $71,100.

American Bitcoin Corp. turned a $126 million profit largely due to gains in its bitcoin holdings.

Production output for the quarter totaled 891 bitcoin, a decrease from the 932 coins produced in the second quarter. Despite this, the company successfully increased its total bitcoin reserve by approximately 5%, ending September with 8,427 BTC. Management noted that they sold a portion of their production to cover operating expenses while simultaneously growing their strategic reserve. The company’s adjusted EBITDA reached $221 million, contrasting sharply with the $45 million loss reported in the second quarter.

Chief Executive Mike Ho stated that the company maintained a structural discount to spot prices during the mining process. Furthermore, the company reported that satoshis per share increased by about 5% to roughly 11,572, a metric management uses to track growth without issuing new shares or purchasing assets on the open market. The firm’s owned fleet consisted of 89,242 miners with a capacity of 28.1 EH/s by the end of the quarter.

Why it matters

The results highlight the volatility inherent in crypto-mining business models, where paper profits from asset appreciation can significantly outweigh operational mining performance. For investors and stakeholders, the company's ability to balance rising power costs against its treasury strategy remains a critical point of focus.

As the firm continues to navigate its position within the corporate treasury ranks, the sustainability of these gains will depend on whether future bitcoin price movements can continue to offset the thinner margins currently observed in mining operations.