Trump-Backed American Bitcoin Reports Third Quarter Profit Amid Bitcoin Price Rally

The Trump-backed American Bitcoin venture has reported a significant financial turnaround, swinging to a profit of approximately $126 million for the third quarter ending September 30. This performance marks a sharp recovery from the $57.2 million net loss recorded in the preceding quarter, driven primarily by an increase in the book value of the company’s Bitcoin reserves.

Financial performance of the Trump-backed American Bitcoin

Nasdaq-listed American Bitcoin, which trades under the ticker ABTC, saw its adjusted EBITDA reach roughly $221 million, contrasting with a $45 million loss in the second quarter. A major contributor to this positive swing was a $197 million accounting gain tied to the appreciation of its digital assets. The company successfully grew its Bitcoin holdings to 8,427 BTC by the end of the quarter, an increase of about 425 coins without the use of new share issuances or external purchases, relying instead on internal mining production.

Eric Trump, co-founder and chief strategy officer, described the results as significant given the challenging market environment. CEO Mike Ho noted that the company maintained a disciplined, Bitcoin-denominated operating model, allowing it to continue mining at a structural discount to spot prices.

Despite the overall profit, the core mining operations faced headwinds. The company mined 891 BTC during the period, down from 932 in the previous quarter. Operational costs per Bitcoin rose to approximately $42,100 from $36,500, a trend the company attributed to higher seasonal power expenses. Consequently, gross margins declined from 49% to 41%. The firm concluded the quarter with a fleet of 89,242 miners and a capacity of 28.1 exahashes per second.

The mining firm returned to profitability largely due to a $197 million gain on its Bitcoin holdings.

This quarter follows a period of volatility for the venture, which recently underwent a 1-for-15 reverse stock split in July following a decline in share price since its public debut via a merger with Gryphon Digital Mining. While the quarterly profit is substantial, it remains heavily dependent on the market valuation of Bitcoin. Should the price of the digital asset decline, the company’s financial results could shift back into a loss, as the gains are tied to accounting adjustments rather than core mining output.

Why it matters

The company's shift to profitability highlights the sensitivity of crypto-mining firms to Bitcoin market fluctuations. Because the profit is largely driven by unrealized gains on holdings, the firm remains exposed to potential downturns in the digital asset market.

For investors and market observers, this result underscores how mining companies are increasingly balancing operational efficiency with the strategic management of their Bitcoin reserves. The reliance on internal mining output to grow reserves, rather than issuing new shares, represents a specific approach to capital management in the current crypto landscape.