MIAMI / NEW YORK / MANILA — American Bitcoin Corp., the Nasdaq-listed cryptocurrency miner backed by President Donald Trump’s family, has reported a dramatic $126-million third-quarter profit, reversing a $57.2-million loss just three months earlier.
But behind the financial turnaround is a critical detail: the company’s earnings were driven largely by a $197.3-million accounting gain on its Bitcoin holdings, even as mining revenue weakened, electricity expenses increased and profit margins narrowed.
The company, co-founded by Eric Trump and majority-owned by Hut 8 Corp., announced its financial results on November 4, providing investors with a detailed look at the risks and rewards of building a publicly traded business around Bitcoin production and accumulation.
American Bitcoin reported approximately $63.4 million in mining revenue for the quarter ended September 30, down from $67 million in the previous quarter.
Its Bitcoin reserves climbed to approximately 8,427 coins, while the cost of mining each Bitcoin rose to $42,100.
The results highlight an increasingly complicated reality for cryptocurrency companies.
Rising digital-asset values can transform reported financial performance, even when the underlying mining business faces considerable operating pressure.
As Eric Trump’s Bitcoin venture celebrates a nine-figure quarterly profit, investors are confronting a bigger question: Can American Bitcoin sustain its recovery if cryptocurrency prices fall and electricity costs keep climbing?
American Bitcoin Swings to $126 Million Profit
American Bitcoin reported net income of approximately $125.99 million for the third quarter of 2026.
That compares with a net loss of $57.2 million during the second quarter.
The turnaround was accompanied by adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) of approximately $221 million, compared with a $45-million adjusted EBITDA loss in the preceding quarter.
At first glance, those numbers appear to suggest a spectacular improvement in the mining business.
However, the company’s financial statements reveal a more nuanced picture.
The quarter included a $197.3-million gain related to changes in the reported value of its digital assets.
That gain helped offset other charges, including approximately $64.3 million in derivative losses.
As a result, the headline profit should not be interpreted as cash earned solely through Bitcoin mining.
For investors, understanding the difference between operational earnings and changes in digital-asset valuations is essential.
The $197 Million Accounting Gain Behind the Headlines
One of the most important developments in the quarter was the increase in the accounting value of American Bitcoin’s cryptocurrency holdings.
Under applicable accounting rules, changes in the fair value of certain digital assets affect reported earnings.
When Bitcoin increases in value, a company holding substantial reserves may recognize gains even without selling the coins.
The opposite can happen when cryptocurrency prices decline.
American Bitcoin recognized approximately $197.3 million in digital-asset gains during the third quarter.
That compared with a $71.2-million digital-asset loss in the second quarter.
The change had a substantial effect on the company’s reported financial results.
It also helps explain why the business could post a large net profit despite weaker mining revenue.
The gain does not mean the company received $197.3 million in cash.
Likewise, the reported net income does not establish that its mining activities generated an equivalent amount of operating cash.
The distinction is especially important because Bitcoin prices can experience extreme volatility.
Bitcoin Mining Revenue Falls as Electricity Costs Rise
American Bitcoin’s mining operations faced more difficult conditions during the third quarter.
Mining revenue declined from approximately $67 million in the second quarter to $63.4 million.
The company produced around 891 Bitcoin, compared with approximately 932 in the previous quarter.
Its average revenue per Bitcoin mined also slipped from roughly $71,900 to $71,100.
Meanwhile, operating costs increased.
American Bitcoin reported gross profit of approximately $25.8 million, down from $33 million.
Its gross margin narrowed to approximately 41%, compared with 49% in the second quarter.
Management attributed the deterioration partly to higher seasonal electricity expenses at its mining facilities.
The cost of mining one Bitcoin increased from approximately $36,500 to $42,100.
That represents an increase of roughly 15%.
The figures illustrate why cryptocurrency mining profitability depends on more than Bitcoin’s market price.
Electricity rates, equipment efficiency, mining difficulty and facility operating conditions all influence the economics of producing new coins.
American Bitcoin Grows Its Reserve to 8,427 BTC
Despite the pressure on mining margins, American Bitcoin continued expanding its cryptocurrency reserves.
The company reported approximately 8,427 Bitcoin at September 30, compared with 8,002 at the end of June.
That represents an increase of approximately 425 Bitcoin, or 5%.
Management emphasized that the company increased its holdings without purchasing Bitcoin on the open market during the quarter.
It also said it did not issue additional shares through its at-the-market equity program.
Instead, it relied on mining production while selling a portion of newly mined Bitcoin to cover operating expenses.
The reserve total includes approximately 3,090 Bitcoin pledged under agreements involving mining-equipment supplier BITMAIN.
Those pledged holdings should not be treated as entirely unrestricted assets available for immediate sale.
American Bitcoin’s strategy is to increase its Bitcoin holdings over time while attempting to mine coins at a cost below their market value.
However, growing the number of Bitcoin held does not automatically guarantee greater shareholder value.
Investors must also account for debt, liabilities, financing arrangements and changes in the company’s outstanding share count.
Eric Trump Says the Company Is Building for the Long Term
Eric Trump, American Bitcoin’s co-founder and chief strategy officer, described the quarterly results as evidence of the company’s long-term business strategy.
He emphasized the increase in Bitcoin reserves, improved reported earnings and the company’s position within US energy infrastructure.
American Bitcoin CEO Mike Ho similarly highlighted its strategy of accumulating Bitcoin through mining rather than relying exclusively on market purchases.
The company has promoted a performance indicator known as Satoshis Per Share, which measures the amount of Bitcoin attributable to each outstanding common share.
That figure increased approximately 5%, from 10,989 satoshis at the end of June to 11,572 at the end of September.
One Bitcoin contains 100 million satoshis.
The metric is intended to show whether the company’s Bitcoin exposure is increasing on a per-share basis.
But it is not a substitute for conventional financial measures.
Shareholders must still consider profitability, operating cash flows, financing obligations and the company’s market valuation.
Who Owns American Bitcoin?
American Bitcoin was established in March 2025 through a partnership involving cryptocurrency infrastructure company Hut 8 and Eric Trump.
It subsequently completed a transaction that brought its shares onto Nasdaq under the ticker symbol ABTC in September 2025.
Hut 8 remains the majority owner.
Eric Trump serves as co-founder and chief strategy officer, while Donald Trump Jr. also holds an ownership interest.
The business is therefore linked to the Trump family, but it is not owned entirely by the family.
American Bitcoin focuses on producing and accumulating Bitcoin through specialized mining equipment.
That distinguishes it from companies that primarily acquire cryptocurrency through market purchases or operate digital-asset trading platforms.
Its share price nevertheless remains exposed to the broader cryptocurrency market.
Changes in Bitcoin prices can affect asset valuations, investor sentiment and the economics of mining operations.
Trump’s Cryptocurrency Ventures Face Growing Political Scrutiny
American Bitcoin’s earnings announcement comes amid heightened attention to the Trump family’s cryptocurrency interests.
The family has connections to several digital-asset ventures, including World Liberty Financial and cryptocurrency-related investment projects.
Reuters previously examined how the family’s commercial involvement in cryptocurrency intersects with President Trump’s regulatory policies.
The administration has supported measures intended to encourage digital-asset investment and establish a more favorable regulatory environment.
Critics argue that presidential involvement in cryptocurrency businesses creates potential conflicts of interest.
Trump representatives have denied wrongdoing and defended the family’s commercial activities.
WWC ONE MEDIA previously examined the controversy in Trump’s $1.4 Billion Crypto Income Becomes Flashpoint as Senate Crypto Bill Stalls.
That report explored how presidential cryptocurrency income became part of congressional debate over digital-asset regulation.
However, political criticism does not establish that American Bitcoin’s reported earnings violate securities laws or accounting requirements.
The company’s financial statements and regulatory filings must be assessed on their own evidence.
Bitcoin’s Price Collapse Threatens Mining Companies
American Bitcoin’s profit also arrives during a difficult period for the wider cryptocurrency market.
Bitcoin has experienced substantial losses from its October 2025 record above $122,000.
On November 4, Reuters reported that Bitcoin briefly touched a six-week low before recovering to approximately $78,354 during European trading.
That reflected a decline of roughly 41% from its previous record.
Investors have been concerned about higher borrowing costs, political uncertainty and deteriorating confidence in parts of the digital-asset industry.
WWC ONE MEDIA examined the market selloff in Bitcoin Plunges Below $77,000 as Democrats Threaten Trump’s Crypto Agenda — But Could a Blue Wave Trigger an Even Bigger Crash?.
The report explored how the US midterm elections and broader market instability were influencing cryptocurrency prices.
For American Bitcoin, another sustained decline could have multiple consequences.
The fair value of its existing reserves could fall.
Mining revenue per coin could weaken.
And operating margins could shrink if electricity and equipment expenses remained elevated.
The third-quarter profit therefore should not be treated as evidence that the company is insulated from a cryptocurrency bear market.
Why Bitcoin Miners Are Moving Toward Artificial Intelligence
Another important development is the transformation of the cryptocurrency mining industry.
Some mining companies are using their land, electricity connections and computing infrastructure to support artificial intelligence and high-performance computing operations.
The strategy reflects increasing demand for data centers capable of handling advanced AI workloads.
Mining companies with suitable facilities may be able to pursue new revenue opportunities by providing infrastructure to technology businesses.
However, the transition requires investment in equipment, cooling, networking and customer-specific infrastructure.
Not every Bitcoin mining facility can be converted economically into an AI data center.
American Bitcoin has maintained a strategy centered on Bitcoin production and accumulation, rather than announcing a comparable wholesale pivot toward AI hosting.
That difference could prove important.
Companies diversifying into AI infrastructure may reduce some dependence on cryptocurrency prices, although they take on different construction, financing and customer risks.
American Bitcoin remains much more directly exposed to changes in the digital-asset market.
Cryptocurrency Security Crisis Adds Pressure to Investor Confidence
The broader industry is also confronting cybersecurity concerns.
A reported multibillion-dollar security incident involving Binance has contributed to market volatility and questions about the safety of cryptocurrency custody systems.
WWC ONE MEDIA covered the fallout in Binance Customers Pull US$4.7 Billion After US$6.3 Billion Hack — But Is Crypto’s Biggest Exchange Losing Their Trust?.
The report examined customer withdrawals and the exchange’s efforts to restore confidence.
The Binance incident is separate from American Bitcoin.
There is no verified evidence that the reported exchange breach compromised American Bitcoin’s reserves or mining infrastructure.
Nevertheless, major security incidents can influence confidence across the cryptocurrency industry.
Investors may become more cautious about digital assets, custody arrangements and companies whose financial performance depends heavily on cryptocurrency valuations.
For publicly traded mining companies, maintaining investor confidence requires transparent disclosures concerning digital-asset holdings and operational risks.
What the Results Mean for American Bitcoin Investors
The latest earnings report presents a mixture of encouraging developments and significant financial risks.
On the positive side, American Bitcoin expanded its reserve, increased its Bitcoin holdings per share and reported a substantial quarterly profit.
The company also avoided issuing shares through its at-the-market program during the quarter.
However, several operating indicators weakened.
Mining revenue declined.
Gross margins narrowed.
The cost of producing Bitcoin increased.
And the company relied heavily on digital-asset valuation gains to produce its reported net income.
Investors should also consider its financial obligations.
American Bitcoin’s SEC filing reported substantial liabilities associated with mining-equipment purchases, including arrangements backed by pledged Bitcoin.
Those obligations may influence future financing decisions and available liquidity.
The company’s results therefore demonstrate both the potential benefits and risks of holding large quantities of cryptocurrency on a corporate balance sheet.
Could Political Changes Make the Outlook More Difficult?
The November 3 US midterm elections introduced another source of uncertainty.
Democrats won control of both chambers of Congress, potentially changing the legislative outlook for cryptocurrency businesses.
The industry has supported proposals intended to establish clearer federal rules for digital assets.
A shift in congressional leadership could affect the pace and content of those proposals.
WWC ONE MEDIA previously examined related issues in Trump Orders US Scrutiny of $6.3-Billion Binance Hack as North Korean Hackers Come Under Suspicion.
The article explored how cryptocurrency regulation, cybersecurity and the Trump administration’s digital-asset policies have become increasingly intertwined.
For American Bitcoin, possible regulatory changes represent one part of a much wider risk environment.
Cryptocurrency prices, mining difficulty, energy costs and financing conditions are also critical.
It would be speculative to attribute the company’s future earnings to any particular congressional decision before legislation is enacted.
Three Critical Questions Investors Should Watch
First, can American Bitcoin improve its mining margins?
Higher electricity costs contributed to the third-quarter decline in gross margin.
Investors will want to see whether costs stabilize and mining efficiency improves.
Second, will Bitcoin prices support the company’s reserve strategy?
A sustained recovery could strengthen asset values, while another decline could produce additional accounting losses.
Third, can management increase Bitcoin holdings without excessive dilution or borrowing?
The company’s strategy emphasizes growing cryptocurrency exposure per share, but investors must assess how that growth is financed.
The answers will determine whether the latest earnings turnaround represents sustainable progress or primarily reflects changes in cryptocurrency prices.
The Bigger Picture: Can Trump-Linked American Bitcoin Stay Profitable?
American Bitcoin’s $126-million third-quarter profit provides a striking example of how digital-asset accounting can transform a company’s financial statements.
The company grew its Bitcoin holdings and reported improved net income.
But its underlying mining operations faced weaker revenue, higher production costs and narrowing profit margins.
That contrast matters.
A business can report strong net earnings while its operating economics become more difficult.
The company’s future will depend on its ability to manage electricity expenses, maintain efficient mining operations and withstand fluctuations in Bitcoin prices.
Political developments, cryptocurrency regulation and investor sentiment may also affect its valuation.
For now, the quarter demonstrates a major accounting-driven recovery—not a guarantee of sustained operational profitability.
As Eric Trump’s American Bitcoin celebrates a $126-million profit fueled by a $197-million digital-asset gain, can the company turn its expanding Bitcoin reserve into lasting shareholder value—or will falling cryptocurrency prices and rising mining costs threaten another painful reversal?
