American Bitcoin announced its Q3 financial results for the three months ending September 30, posting $126 million in net income and successfully turning around a $57.2 million loss from Q2. This financial turnaround was primarily driven by a $197.3 million gain on digital assets, while mining revenue and margins moved in the opposite direction.
The financial figures were released following the close of the U.S. market on November 4. CEO Mike Ho noted that the bitcoin gain was non-cash, tracking BTC’s roughly 39% increase throughout the third quarter.
197.3 million in bitcoin gains drove the profit
During Q3, American Bitcoin booked a $197.3 million gain on digital assets, a sharp contrast to the $71.2 million loss reported for that line item in Q2. Operating income reached $191.8 million, with company filings indicating that the digital-asset gain served as the primary catalyst for the quarterly performance.
According to Bitcoin Magazine, stripping away this gain reveals an operational loss of approximately $5.5 million. Consequently, the headline profit highlights fluctuations in the valuation of the company’s bitcoin holdings rather than an increase in core mining strength.
The accounting mechanics function in both directions. During Q2, a digital-asset loss of $71.2 million contributed to the firm’s $57.2 million net loss. Additionally, Q3 expenses featured a $64.3 million derivatives loss, which was factored back into adjusted EBITDA calculations.
63.4 million in mining revenue, down from Q2
Mining revenue experienced a decline, dropping from $67 million in Q2 to $63.4 million in Q3. Gross profit decreased from $33 million to $25.8 million, leading to a narrower gross margin of 41%, down from the previous 49%.
Production volume also decreased. American Bitcoin generated about 891 BTC, compared to the 932 BTC mined in the previous quarter. Revenue generated per bitcoin mined reached roughly $71,100, remaining just below the approximately $71,900 recorded in Q2.
Operating out of Miami, the treasury and mining enterprise functions as a majority-owned subsidiary of Hut 8. At the close of the quarter, the company maintained an owned fleet of roughly 89,242 miners, yielding about 28.1 EH/s of capacity. Hut 8 released its own Q3 performance on the same date, stating it had divested some bitcoin to finance share buybacks while transitioning mining operations into American Bitcoin.
42,100 was the cost to mine one bitcoin
The cost required to mine a single BTC climbed to $42,100, up from $36,500 in Q2. Company leadership attributed the rise to increased seasonal power expenses across its operational facilities.
BeInCrypto noted that adjusted EBITDA similarly reflected the asset gain, reaching $220.8 million compared to an adjusted EBITDA loss of $45 million in Q2. This financial metric also factored back a $64.3 million derivatives loss.
Eric Trump, co-founder and chief strategy officer, highlighted the positive net income and adjusted EBITDA alongside expansion in both the bitcoin reserve and bitcoin per share. Ho added that the company sustained mining operations at a “structural discount to spot” despite headwinds from seasonal power expenses.
8,427 BTC in reserve at quarter-end
As of September 30, American Bitcoin’s reserves totaled 8,427 BTC, representing an increase of about 425 BTC, or roughly 5%, throughout the quarter. The firm mined approximately 891 BTC while liquidating about 465 BTC to manage operational costs.
Management emphasized that this reserve expansion occurred without executing direct bitcoin purchases or selling shares through the at-the-market facility. Satoshis per share grew by approximately 5% to reach 11,572, up from 10,989 at the close of June. Furthermore, approximately 3,090 BTC have been pledged as collateral for upcoming miner acquisitions under existing agreements with Bitmain.
The recorded share count accounts for a 1-for-15 reverse stock split that went into effect on July 2.
Q4 price moves could reverse the paper gain
Bitcoin commenced the fourth quarter at $83,553.85 and traded close to $80,705 at the time of the report, following a recovery past $80,000 earlier in the week. At that valuation, fourth-quarter marks would imply a loss of roughly $24 million, with nearly two months remaining in the period. Conversely, a December market close surpassing the Q4 opening price would generate an additional gain, whereas a drop toward approximately $68,600 would wipe out the Q3 profit entirely through valuation adjustments alone.
Following November 4, American Bitcoin shares initially declined 5.6% from the previous close, then recovered by 0.48% in after-hours trading to hit $6.27 after closing at $6.24. Shares remained down 75.53% since the beginning of 2026. The upcoming Q4 financial report will clarify how the bitcoin price on December 31 impacted the reported valuation of the reserve.
What to watch in the ABTC Q3 results and beyond
Two primary factors will influence the upcoming financial reports: market fluctuations affecting the value of the bitcoin reserve, and operational execution as power expenses and production output shift. During Q3, mining revenue, gross profit, and overall production all trailed Q2 levels, meaning any future recovery must originate on the operational side.
Whether future bitcoin price increases can continuously offset escalating power expenses and tightening mining margins remains an open question. Although the firm previously designated its Q2 production as its highest quarterly output on record, Q3 figures declined, leaving the reported value of the reserve vulnerable to ongoing market volatility.
FAQ
When did American Bitcoin release its Q3 results?
Earnings came out after the U.S. market closed on November 4. The results cover the quarter ended September 30.
How did the Q3 digital-asset gain compare with the Q2 result?
American Bitcoin recorded a $197.3 million gain in Q3, following a $71.2 million digital-asset loss in Q2. CEO Mike Ho described the Q3 gain as non-cash.
How many bitcoin did American Bitcoin mine in Q3?
About 891 BTC during the quarter, below its Q2 production of 932 BTC.
How many bitcoin did the company hold at the end of September?
Its reserve stood at 8,427 BTC on September 30. The company said it added about 425 BTC during Q3 while selling about 465 BTC to cover costs.
What drove the $126 million net profit?
A $197.3 million gain on digital assets, not mining, carried the quarter. Excluding that gain, operations lost about $5.5 million.
This article is for information only and is not financial advice.
