American Bitcoin Profit Rises on Treasury Gain
American Bitcoin reported about $126 million in third-quarter net income, reversing a $57.2 million loss in the previous quarter. The result was driven principally by a $197.3 million gain on digital assets, while the company’s mining revenue and margins weakened.
The earnings highlight the distinction between the value of the company’s bitcoin holdings and the performance of its mining operation. Revenue fell to $63.4 million during the quarter, according to CoinDesk, and the company missed analysts’ revenue forecasts.
What happened
American Bitcoin, which trades under the ticker ABTC, released its third-quarter 2026 results on Wednesday. Stocktitan, which published the company’s release, reported that the company recorded approximately $126 million in net income and $221 million in adjusted EBITDA.
That marked a sharp reversal from the second quarter, when net income was a $57.2 million loss and adjusted EBITDA was a $45.0 million loss, according to Yahoo Finance. Yahoo Finance said the central driver of the change was a $197.3 million gain on digital assets, compared with a $71.2 million loss in the preceding quarter.
The digital-asset gain was offset in part by a $64.3 million loss on derivatives. Yahoo Finance reported that derivatives had produced a gain of $18.3 million in the previous quarter.
CoinDesk reported that third-quarter revenue was $63.4 million. It said bitcoin production declined and summer electricity prices increased mining costs, factors that contributed to the revenue decline and the miss against analysts’ forecasts.
Marketbeat reported that gross profit fell to approximately $25.8 million from $33 million in the prior quarter. Gross margin narrowed to about 41% from 49%, according to Marketbeat, underscoring the pressure on the underlying mining business even as the company reported net income.
Bitcoin Magazine likewise characterized the $126 million profit as resting largely on the gain in the company’s bitcoin holdings rather than mining revenue. Its report said American Bitcoin had an owned fleet of about 89,242 bitcoin miners with roughly 28.1 EH/s of capacity at quarter-end.
Why it matters
The quarter shows how results at a bitcoin-focused company can be shaped by changes in the value of digital-asset reserves as well as operating performance. American Bitcoin’s reported net income, adjusted EBITDA and mining revenue each describe different parts of its financial picture.
The $197.3 million gain on digital assets was larger than the company’s reported net income. At the same time, revenue, gross profit and gross margin all moved lower from the prior quarter, based on figures reported by CoinDesk and Marketbeat.
That makes the source of the profit important for interpreting the results. Yahoo Finance described the digital-asset gain as non-cash, while Bitcoin Magazine said the outcome was largely tied to gains on bitcoin holdings. Neither description changes the reported profit, but both identify the accounting item that had the largest effect on the quarter.
The revenue miss also puts focus on the mining operation itself. CoinDesk attributed the decline in revenue to lower bitcoin production and higher summer electricity prices. Marketbeat similarly said pressure on mining margins came from higher energy costs.
Background and context
American Bitcoin Corp. is a bitcoin miner co-founded by Eric Trump and majority-owned by Hut 8 Corp. The company positions itself as a Bitcoin accumulation platform and tracks Satoshis Per Share.
Stocktitan’s publication of the company release described American Bitcoin as a majority-owned subsidiary of Hut 8 and a Bitcoin accumulation platform focused on building Bitcoin infrastructure. Bitcoin Magazine reported that Hut 8 released its own third-quarter results on the same day and confirmed bitcoin sales used to fund share buybacks while shifting mining into the American Bitcoin vehicle.
The third-quarter profit came from a $197.3 million accounting gain on the company’s bitcoin treasury. Without that gain, American Bitcoin would have posted a pre-tax loss of about $69.8 million as mining output, revenue and margins slipped.
Eric Trump, American Bitcoin’s co-founder and chief strategy officer, said in the company release published by Stocktitan that the company delivered approximately $126 million in net income and $221 million in adjusted EBITDA while growing its Bitcoin reserve and increasing Bitcoin per share.
There is a small reporting difference in the adjusted EBITDA figure. Yahoo Finance described adjusted EBITDA as about $221 million, while another figure cited in reporting was $220.8 million. The difference appears to be a rounding difference.
What to watch
Future disclosures can clarify whether mining revenue, gross profit and gross margin recover from the levels reported for the third quarter. CoinDesk’s account makes bitcoin production and electricity costs central operating measures to follow.
It will also be important to distinguish gains or losses on digital assets from mining revenue and mining costs in subsequent reports. The third-quarter figures show that the company’s bitcoin holdings had a material effect on earnings.
American Bitcoin’s derivative results are another open question. The company reported a $64.3 million derivatives loss in the third quarter after a $18.3 million gain in the previous quarter, according to Yahoo Finance.
Finally, Hut 8’s relationship with American Bitcoin remains relevant because Hut 8 is the company’s majority owner. Bitcoin Magazine reported that Hut 8 was shifting mining into the American Bitcoin vehicle, making future disclosures from both companies relevant to understanding that structure.
