American Bitcoin’s third-quarter results show why a miner’s reported profit and operating performance need to be assessed separately. The Trump-family-backed company reported roughly $126 million in net income, but a $197 million gain on digital assets drove much of the turnaround while mining output and gross margin declined.
Decrypt reported the results on November 6, 2026, at 02:25:31 UTC+8, covering the quarter ended September 30.
Bitcoin gains drive the earnings reversal
The Nasdaq-listed company, which trades as ABTC and is majority-owned by Hut 8, reversed a $57.2 million net loss in the second quarter. Adjusted EBITDA reached roughly $221 million, compared with a $45 million loss in the prior quarter.
Much of that improvement reflected the rise in Bitcoin’s book value rather than stronger mining operations. The distinction matters: the digital-asset gain contributed to reported earnings, but it is not a measure of mining profitability.
American Bitcoin increased its reserve to approximately 8,427 BTC, up roughly 425 BTC, or 5%, from the end of June. Its “satoshis per share”—a measure of the Bitcoin backing each share—also increased by about 5%.
According to the report, the company bought no Bitcoin and issued no new shares through its at-the-market program during the quarter, relying instead on mining output to build its holdings.
Mining economics weakened
The operating figures presented a less favorable picture:
| Metric | Third quarter | Prior quarter |
|---|---|---|
| Bitcoin mined | About 891 BTC | 932 BTC |
| Cost to mine one Bitcoin | Roughly $42,100 | $36,500 |
| Gross margin | 41% | 49% |
The company attributed the higher mining cost to seasonal power expenses. It ended the quarter with approximately 89,242 miners and 28.1 exahashes per second of capacity.
Co-founder and chief strategy officer Eric Trump called the results significant, particularly in what he described as a challenging digital-asset market, emphasizing profit and Bitcoin-per-share growth. CEO Mike Ho credited “a disciplined, Bitcoin-denominated operating business” and said the company continued “mining Bitcoin at a structural discount to spot.” Those management assessments sit alongside the reported increase in unit costs and decline in gross margin.
What the results mean for valuation
The quarter supports two distinct observations: Bitcoin holdings per share increased, while mining economics deteriorated. Neither the headline profit nor the reserve total alone establishes whether ABTC shares are attractively valued.
The earnings reversal was heavily dependent on a Bitcoin-linked accounting gain. As Decrypt noted, a decline in Bitcoin’s price could push reported earnings back into a loss.
The results also followed a volatile stretch for the stock. American Bitcoin had recorded a record mining quarter earlier in the year as its holdings crossed 8,000 BTC, but its shares subsequently hit new lows. The company undertook a 1-for-15 reverse stock split in July, and its shares remained well below their debut price following its public listing through a merger with Gryphon Digital Mining.
For assessing these results, the key distinction is between the value of accumulated Bitcoin, changes in that value recognized in earnings, and the profitability of producing additional coins. This quarter’s headline profit was not evidence of an equivalent improvement in the underlying mining business.