American Bitcoin, the Trump-family-backed miner majority-owned by Hut 8, swung to roughly $126 million of net income in the third quarter from a $57.2 million loss in the second. The turnaround was driven by a $197 million mark-to-market gain on its digital-asset holdings as Bitcoin’s price rose during the period. Adjusted EBITDA came in at about $221 million, reversing a $45 million shortfall the prior quarter.
Mining economics deteriorate
The operating picture was less forgiving. The company mined 891 BTC, down from 932 in the second quarter, while the cash cost per coin climbed to roughly $42,100 from $36,500. Management blamed higher seasonal power prices. Gross margin contracted to 41 percent from 49 percent. The fleet stood at 89,242 machines delivering 28.1 exahashes per second at quarter-end.
Reserve growth without market purchases
American Bitcoin increased its treasury to about 8,427 BTC, a gain of roughly 425 coins, or 5 percent, since the end of June. The company said it added no Bitcoin through open-market buying and issued no shares under its at-the-market facility during the quarter, relying entirely on self-mined output. The metric it highlights, satoshis per share, rose by a similar 5 percent.
Volatile post-merger history
The results follow a turbulent stretch since the venture went public via a merger with Gryphon Digital Mining. Shares have traded well below their debut level, prompting a 1-for-15 reverse split in July. An earlier quarter had delivered record production as the reserve crossed 8,000 BTC, but the equity has yet to reflect that milestone.
The profit rests on price, not operations
Co-founder and chief strategy officer Eric Trump called the results significant for a challenging market. Chief executive Mike Ho described a disciplined, Bitcoin-denominated business mining at a structural discount to spot. The numbers bear that out only while the mark-to-market gain holds; a decline in Bitcoin’s price would unwind the profit just as quickly as the rally created it.