American Bitcoin posts $126 million profit on bitcoin price gain

American Bitcoin reported a $126 million profit for the third quarter on November 4, a swing from a $57 million loss three months earlier. Almost all of it came from revaluing the bitcoin it holds, not from mining coins.

These figures come from the company's earnings release and a filing with the US Securities and Exchange Commission. American Bitcoin trades on the Nasdaq under the ticker ABTC. It is majority owned by the bitcoin miner Hut 8, with stakes held by Eric Trump and Donald Trump Jr., sons of President Donald Trump.

Where the $126 million came from

Strip out one line and the quarter looks very different. American Bitcoin booked a $197.3 million non-cash gain on its digital assets, the accounting term for its bitcoin. That one figure is larger than the entire reported profit. Without it, the company would have run a loss of about $71 million for the three months. The gain is on paper.

Under accounting rules that took effect in 2025, firms must mark their bitcoin to its market price every quarter. When the price rises, the increase flows straight to the income statement, even though no coins change hands. Bitcoin climbed into the close of the quarter on September 30, which lifted the value of American Bitcoin's holdings. Adjusted earnings before interest, taxes, depreciation and amortization reached about $221 million, against a $45 million loss on that measure three months earlier. Other crypto-heavy firms reported the same pattern this season, among them Coinbase, whose quarterly profit also came mostly from crypto it holds.

Timing explains part of the swing. Before 2025, companies could only write their bitcoin down when the price fell, never up while they held it, so gains stayed hidden until a sale. The Financial Accounting Standards Board switched to a fair-value approach, which lets both gains and losses show each quarter. That makes reported profit far more sensitive to the price of one asset.

That cuts both ways. In the second quarter, a fall in the price produced a $71 million loss on the very same line. No coins were sold. The number moves with the market, up or down, whatever the mining business does.

For shareholders, the distinction is not academic. A profit built on an unrealized mark can shrink on the next quarterly statement without the company doing anything at all. Lenders and index funds, though, often read the headline figure first.

Mining got more expensive, not less

Mining, the part of the business that actually produces bitcoin, went backwards. Revenue from mining was $63.4 million, down about 5 percent from $67 million in the previous quarter. The company produced roughly 891 bitcoin, fewer than the 932 it mined three months earlier.

Costs moved the wrong way too. American Bitcoin said it spent about $42,100 to mine each bitcoin, up from around $36,500 a quarter earlier, and blamed higher seasonal power prices. Fewer coins, and a higher bill for each one. Mining capacity stood near 28.1 exahashes per second at the end of September. Rival miners face the same squeeze, and some are chasing other income, as Riot did with a $28 billion AI leasing deal.

Like many listed miners, American Bitcoin keeps most of what it mines rather than selling it, a treasury model that ties its results to bitcoin's price as much as to its machines. That choice is what filled the balance sheet with more than 8,000 coins. It is also what made this quarter's profit swing so wide.

A Trump-linked miner backed by Hut 8

American Bitcoin is one of the more closely watched names in US mining because of who owns it. The company was formed in 2025 and went public through a merger with Gryphon Digital Mining, keeping the American Bitcoin name and the ABTC ticker. The shares began trading in September 2025 after Gryphon shareholders approved the deal. Hut 8 is the majority shareholder and runs the mining infrastructure. Eric Trump and his brother Donald Trump Jr. hold stakes and sit close to the business.

"We're building American Bitcoin for the long term, and I'm excited about what lies ahead," said Eric Trump, the company's co-founder and chief strategy officer. Chief Executive Mike Ho put the quarter in terms of discipline rather than the headline number. "Our third-quarter results demonstrate our commitment to building a disciplined, Bitcoin-denominated operating business," he said.

By the end of September the company held about 8,427 bitcoin, up from roughly 8,002 three months earlier. About 3,090 of those coins are pledged against miner purchases under agreements with the equipment maker BITMAIN. American Bitcoin did not say what it plans to do with the rest, and it has given no sign that it intends to sell.

What to watch

The paper gain depends entirely on where bitcoin trades. The price has dropped since the quarter closed. Bitcoin changed hands near $76,000 at 20:00 UTC on November 5, according to CoinGecko, below the level that produced the third-quarter mark. If it holds there into the end of December, the same rule that delivered this profit could hand the company a loss in the fourth quarter.

Two other things are worth tracking. Power costs usually rise in winter, which would push the cost to mine each coin higher still. And the 3,090 pledged coins tie part of the treasury to the company's deals for new machines. Watch both when the next set of numbers lands.