Erik Trump-backed American Bitcoin reported $126 million in profits in the third quarter and increased its holdings of Bitcoin by 425 coins.

American Bitcoin Corp. The report states that due to an increase in the value of its Bitcoin holdings by $197.3 million, which offset the effects of declining mining revenue and rising electricity costs, the company achieved a profit of $126 million in the third quarter.

• American Bitcoin reported a net profit of $126 million in the third quarter, reversing a loss of $57.2 million in the second quarter.
• The valuation of digital assets yielded a return of $197.3 million, which supported profits; at the same time, derivative losses of $64.3 million offset some of this revenue.
• Mining revenue has dropped to 63.4 million US dollars, and the production of Bitcoin has decreased from 932 to 891 coins.
• The number of Bitcoin holdings increased by 425, reaching 8,427, of which 3,090 are pledged according to the device agreement with Bitmain.
• The mining cost for each Bitcoin has risen to $42,100, and seasonal electricity expenses have reduced the gross margin to 41%.

The mining company, which received support from Eric Trump, stated in its financial report released on November 4th that its net profit for the three months ending September 30th was $126 million, whereas it incurred a loss of $57.2 million in the second quarter. Documents submitted to the U.S. Securities and Exchange Commission (SEC) show that this profit was mainly driven by changes in the value of Bitcoin, while quarterly mining output and gross profit had declined.

Bitcoin valuation and earnings boost American Bitcoin performance

The company's digital asset earnings totaled 197.3 million US dollars, reversing the loss of 71.2 million US dollars recorded in the previous quarter from Bitcoin holdings. The document states that this change was due to the increase in Bitcoin price from approximately 59,847 US dollars on June 30 to 83,415 US dollars on September 30, and at the same time, its reserve size also increased.

American Bitcoin measures its Bitcoin at fair value in each reporting period. Therefore, even if the company does not sell these tokens, changes in market prices are reflected in the income statement. The profits for that quarter do not come entirely from mining operations or Bitcoin sales.

The file also records a derivative loss of $64.3 million, which is mainly related to Bitcoin redemptions and put options associated with the mining machine supplier Bitmain. Despite this expense, the adjusted EBITDA still reached $220.8 million, while in the second quarter, the adjusted EBITDA loss was $45 million.

CEO Mike Ho stated: "Despite facing seasonal pressures on electricity costs, we continue to mine Bitcoin at costs that are structurally discounted relative to spot prices."

He explained that the company did not purchase Bitcoin this quarter, nor did it issue shares at market price (according to its ATM plan to issue shares), yet it still increased its reserves.

Rising electricity costs squeeze mining profit margins

Mining operations generated revenue of $63.4 million, which is lower than the $67 million in the second quarter. The company produced approximately 891 bitcoins this quarter, compared to 932 in the previous quarter; the average revenue per mined bitcoin also decreased from $71,900 to $71,100.

The average mining cost for a single Bitcoin has risen from $36,500 to $42,100. American Bitcoin indicates that the increase in cost is mainly due to the seasonal increase in electricity expenses for their mines, which has reduced the quarterly gross profit from $33 million to $25.8 million.

Gross profit margin dropped from 49% to 41%. The company stated that it sold some of the mined bitcoins to cover operating expenses, while keeping the remainder to expand its reserves.

Although the production has increased compared to approximately 563 Bitcoins in the third quarter of 2025, mining revenue for this quarter was still slightly lower than the $64.2 million from the same period last year. The document states that this difference is due to a decrease in the average revenue per mined Bitcoin, which was partially offset by the new machines put into operation at the Vega and Drumheller sites.

As of the end of September, American Bitcoin owned approximately 89,242 mining machines, with a total computing power of 28.1 exahashes per second (EH /s). After installing additional mining equipment, its fleet reached this level of computing power in April.

American Bitcoin Bitcoin reserves increased to 8,427 coins

The company's Bitcoin reserves increased from approximately 8,002 at the end of June to 8,427 as of September 30, representing a net increase of about 425 coins.

Out of the total holdings, 3,090 Bitcoins are pledged according to the mining machine procurement arrangements with Bitmain. The SEC file classifies 2,385 of these as current assets, and 705 as non-current assets. Additionally, there are 5,337 Bitcoins in a custodial state.

American Bitcoin valued its total reserves at $702.9 million at the end of the quarter, compared to $478.9 million in June. This change includes the retained mining output, as well as fluctuations in the market value of the tokens already held.

The indicator for each聪 (satoshis per share) increased by about 5%, rising from 10,989 to 11,572. This indicator is calculated by pricing Bitcoin reserves in聪, dividing that amount by the number of outstanding common shares, and then adjusting for the 1:15 reverse stock split implemented by the company on July 2nd.

Before the latest financial results were released, the company recorded a financial loss in the second quarter, during which the value of its digital assets decreased by $71.2 million.

The SEC file shows that there were previous stock sales and cash outflows.

Although American Bitcoin did not issue shares under its ATM plan in the third quarter, its SEC document shows that in the first nine months of 2026, the company sold 7.76 million Class A shares through this plan.

These transactions brought a total of $144.7 million in raised funds before deducting issuance costs. The company established this plan in September 2025, with the intention to sell up to $2.1 billion worth of shares over a certain period of time.

The company's digital asset records show that no bitcoins were purchased between June 30 and September 30, which is consistent with the management's claim that the increase in reserves came from mining.

American Bitcoin reports that the net cash used for operating activities in the first nine months of 2026 was 72.4 million US dollars, compared to 43.1 million US dollars during the same period in 2025.

Its cash flow statement also shows separately that the expenditure on purchasing digital assets in the first nine months of 2026 was 65.3 million US dollars.

American Bitcoin previously expanded its reserves to over 8,000 bitcoins in July and implemented a 1:15 reverse stock split to meet NASDAQ's minimum share price requirements.

During the same financial reporting quarter, other listed Bitcoin mining companies also announced their third-quarter results. Hut reported a net profit of $189.5 million, which included $413.8 million in mainly unrealized digital asset gains.

Meanwhile, Riot Platforms reported quarterly revenue of $181.4 million, of which $116 million came from Bitcoin mining.