Trump-Backed American Bitcoin Turns a Profit as Bitcoin Rise Lifts Books
American Bitcoin, the Trump-family-backed mining venture, swung to roughly $126 million in net income in Q3, reversing from a $57.2 million loss in Q2, as Bitcoin's rising book value boosted its financial performance.
The Nasdaq-listed company, which trades under the ticker ABTC and is majority-owned by miner Hut 8, achieved adjusted EBITDA of roughly $221 million, versus a $45 million loss the prior quarter. This dramatic turnaround was largely fueled by a $197 million gain on its digital assets as Bitcoin's value increased during the period.
Mining Challenges
Despite the financial improvement, American Bitcoin's mining operations faced difficulties in Q3. The company mined about 891 BTC, down from 932 in the previous quarter, while its cost to mine rose to roughly $42,100 per Bitcoin from $36,500 due to higher seasonal power costs. Gross margin decreased to 41% from 49%.
The company ended the quarter with approximately 89,242 miners and 28.1 exahashes per second of capacity. Notably, American Bitcoin grew its Bitcoin reserve to about 8,427 BTC, up roughly 425 coins, without purchasing additional Bitcoin or issuing new shares during the quarter.
Leadership Response
Company leadership expressed satisfaction with the results. Eric Trump, co-founder and chief strategy officer, called them 'particularly significant in a challenging digital asset market.' CEO Mike Ho attributed the performance to 'a disciplined, Bitcoin-denominated operating business,' noting the firm continued 'mining Bitcoin at a structural discount to spot.'
The results come after a volatile period for the venture. American Bitcoin previously achieved a record mining quarter earlier this year as it crossed 8,000 BTC, but its stock has struggled, hitting new lows and prompting a 1-for-15 reverse stock split in July. Shares remain below their debut price since the company went public through a merger with Gryphon Digital Mining.
Market Volatility Concern
The company's profit, while striking, rests heavily on an accounting gain tied to Bitcoin's price rather than core mining operations. This means a downturn in Bitcoin's value could just as easily swing the figure back into the red, highlighting the volatile nature of cryptocurrency mining businesses.
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