American Bitcoin reported $126 million in Q3 net income, reversing a $57.2 million loss in Q2. A $197.3 million gain on digital assets primarily drove the swing, while mining revenue and bitcoin production declined and costs rose.
American Bitcoin swung to profit in the third quarter after recording a $197.3 million gain on digital assets, offsetting weaker mining revenue and higher production costs. The miner, co-founded by Eric Trump, reported net income of $126 million for the three months ended Sept. 30, compared with a $57.2 million net loss in the previous quarter.
Mining revenue and margins decline
American Bitcoin said adjusted EBITDA also turned positive at $220.8 million, from a loss of $45 million in Q2. Mining revenue, however, fell 5.4% quarter over quarter to $63.4 million from $67 million. Bitcoin production declined 4.4% to approximately 891 BTC from 932 BTC.
On costs, the company said its expenditure rose 15.3% to approximately $42,100 from $36,500. Gross margin fell to 41% from 49%. Gross profit declined to $25.8 million from $33 million.
Eric Trump said in the company statement: "These are significant results, particularly in a challenging digital asset market"
Holdings reach 8,427 BTC
The company sold a portion of its quarterly bitcoin production to cover operating costs, it said, while adding about 425 BTC to its reserve and making no purchases during the period. Total holdings reached 8,427 BTC at the end of September.
Shares closed down 5.6% on Wednesday but climbed 2.4% in extended trading following the earnings release. The stock was down 76% year-to-date.
Other miners also reported substantial digital asset gains. Hut 8 posted $189.5 million in Q3 net income, including $413.8 million in primarily unrealized digital asset gains, while Riot Platforms reported $181.4 million in quarterly revenue, including $116 million from bitcoin mining.
Source: The Block
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