American Bitcoin Corp., the Bitcoin miner co-founded by Eric Trump, reported a third-quarter net income of $126 million, reversing a $57.2 million net loss in the prior quarter. The swing was driven by a $197.3 million gain on digital assets, as Bitcoin’s price climbed from approximately $59,847 on June 30 to $83,415 on September 30. That was partly offset by a $64.3 million derivatives loss tied mainly to Bitcoin redemption and put options linked to mining equipment supplier Bitmain.
Adjusted EBITDA turned positive at $220.8 million, compared with a loss of $45 million in Q2. However, mining revenue fell 5.4% quarter over quarter to $63.4 million from $67 million, and Bitcoin production declined 4.4% to about 891 BTC from 932 BTC. The average cost to mine one Bitcoin rose to $42,100 from $36,500, reducing gross margin to 41% from 49% and gross profit to $25.8 million from $33 million.
The company added approximately 425 BTC to its reserve during the quarter without purchasing Bitcoin, bringing total holdings to 8,427 BTC at the end of September. American Bitcoin said it sold part of its mined Bitcoin to cover operating costs. It valued the reserve at $702.9 million at quarter-end, up from $478.9 million in June, and its satoshis per share increased about 5% to 11,572.
CEO Mike Ho said the company continued mining Bitcoin at a structural discount to spot despite seasonal power cost pressure. Eric Trump called the results significant and said the opportunity extends beyond any single quarter. The stock closed down 5.6% on Wednesday and then rose 2.4% in extended trading. Peer miners Hut 8 and Riot Platforms also reported large digital asset gains in the same period.
