American Bitcoin, the Bitcoin miner co-founded by Eric Trump, swung to a profit in the third quarter as gains on its Bitcoin holdings lifted its results.
The Nasdaq-listed company reported net income of about $126 million for the three months to 30 September, compared with a net loss of $57.2 million in the second quarter. Adjusted EBITDA, a measure of operating earnings, came in at about $221 million, against a loss of $45 million in the previous quarter.
Much of the turnaround came from a $197 million gain on the value of the company’s digital assets.
“These are significant results, particularly in a challenging digital asset market,” said Eric Trump, co-founder and chief strategy officer.
Mining got more expensive
American Bitcoin mined about 891 BTC in the quarter, down from 932 in the second quarter.
Its cost to mine each Bitcoin rose to about $42,100, from $36,500, which the company put down to higher seasonal power costs. Its gross margin fell to 41% from 49%.
The company runs a fleet of about 89,242 mining machines, with a total computing power of 28.1 exahashes per second.
Growing its Bitcoin stack
American Bitcoin held about 8,427 BTC at the end of the quarter, up about 425 BTC, or 5%, from the end of June. It added to its holdings using only its own mining output, without buying Bitcoin or issuing new shares.
Chief executive Mike Ho credited “a disciplined, Bitcoin-denominated operating business,” and said the company continued “mining Bitcoin at a structural discount to spot.”
Shares still under pressure
American Bitcoin is majority owned by Hut 8, and went public through a merger with Gryphon Digital Mining. It carried out a 1-for-15 reverse stock split in July, and its shares have hit new lows and trade well below their debut price.
What happens next
Because so much of the profit came from the rising value of its Bitcoin, the company’s results are closely tied to the Bitcoin price. A fall in Bitcoin could push it back to a loss, while higher mining costs are squeezing the margin on each coin it produces.
