Trump-Backed American Bitcoin Turns a Profit as Bitcoin Rise Lifts Books
Nasdaq-listed mining venture majority-owned by Hut 8 swings from $57.2 million Q2 loss as Bitcoin reserve grows to 8,427 BTC
Quick Look
American Bitcoin, the Trump-family-backed Nasdaq-listed mining venture majority-owned by Hut 8, reported roughly $126 million in Q3 net income, reversing a $57.2 million Q2 loss, driven by a $197 million gain on digital assets as Bitcoin's value rose; its reserve grew to 8,427 BTC without new purchases or share issuance, though core mining margins slipped.
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Why It Matters
American Bitcoin is a Trump-family-backed mining venture listed on Nasdaq under ticker ABTC and majority-owned by miner Hut 8. It went public through a merger with Gryphon Digital Mining and conducted a 1-for-15 reverse stock split in July after its stock hit new lows.
American Bitcoin, the Trump-family-backed mining venture, swung to a roughly $126 million profit in the third quarter, a sharp reversal from the loss it posted three months earlier, as a jump in Bitcoin’s book value and disciplined accumulation powered its best showing yet.
The Nasdaq-listed company, which trades under the ticker ABTC and is majority-owned by miner Hut 8, reported net income of about $126 million for the quarter ended Sept. 30, compared with a $57.2 million net loss in the second quarter.
Adjusted EBITDA came in at roughly $221 million, versus a $45 million loss the prior quarter. Much of the swing came from a $197 million gain on its digital assets, as Bitcoin’s value rose during the period.
The company grew its Bitcoin reserve to about 8,427 BTC, up roughly 425 coins, or 5%, from the end of June, and lifted its “satoshis per share,” a measure of how much Bitcoin backs each share, by about 5%. Notably, it did so without buying any Bitcoin or issuing new shares through its at-the-market program during the quarter, relying instead on its own mining output.
“These are significant results, particularly in a challenging digital asset market,” said Eric Trump, the company’s co-founder and chief strategy officer, touting the profit and the growth in Bitcoin per share. CEO Mike Ho credited “a disciplined, Bitcoin-denominated operating business,” saying the firm continued “mining Bitcoin at a structural discount to spot.”
The mining operation itself had a tougher quarter. American Bitcoin mined about 891 BTC, down from 932 in the prior period, and its cost to mine rose to roughly $42,100 per Bitcoin from $36,500, which it attributed to higher seasonal power costs. Gross margin slipped to 41% from 49%. The company ended the quarter with a fleet of about 89,242 miners and 28.1 exahashes per second of capacity.
The results cap a volatile stretch for the venture. American Bitcoin notched 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 have fallen well below their debut price since the company went public through a merger with Gryphon Digital Mining.
The company’s profit, while striking, rests heavily on an accounting gain tied to Bitcoin’s price rather than core mining operations, meaning a downturn in Bitcoin could just as easily swing the figure back into the red.
Open Questions
- What specific accounting rules drove the $197 million digital-asset gain?
- What are the company's forward guidance or outlook for Q4 mining and Bitcoin accumulation?
- How does the 1-for-15 reverse stock split affect shareholder value and trading liquidity?
