American Bitcoin, a mining company backed by the Trump family, reported a net profit of approximately $126 million for the third quarter ending September 30. This marks a significant turnaround from the $57.2 million net loss recorded in the second quarter. The company's adjusted EBITDA reached $221 million, compared to a $45 million loss in the previous period.
The financial improvement was primarily driven by a $197 million accounting gain on digital assets as the value of Bitcoin increased. The company expanded its Bitcoin reserves to 8,427 BTC, an increase of roughly 425 coins. This growth was achieved solely through internal mining operations without purchasing additional Bitcoin or issuing new shares during the quarter.
Operational results for the mining segment showed a decline, with 891 BTC mined compared to 932 BTC in the prior quarter. The cost to mine one Bitcoin rose to approximately $42,100 from $36,500, largely due to seasonal power expenses. Gross margin decreased to 41% from 49%. The firm currently operates a fleet of 89,242 miners with a capacity of 28.1 exahashes per second.
The Nasdaq-listed firm, which trades under the ticker ABTC and is majority-owned by Hut 8, has faced a volatile year. Following a period of stock price decline, the company executed a 1-for-15 reverse stock split in July. While the recent profit is notable, management acknowledges that the company's financial performance remains sensitive to fluctuations in the market price of Bitcoin.
