American Bitcoin Posts $126 Million Q3 Profit on Asset Gains

American Bitcoin Corp. reported about $126 million in net income for the third quarter, swinging from a $57.2 million loss in the prior quarter, the company said in an SEC press release furnished with its Nov. 4 Form 8-K.

Mining revenue was about $63.4 million, down from about $67.0 million in the second quarter. The company mined about 891 bitcoin in the quarter, versus about 932 in Q2, and said its cost to mine rose to about $42,100 per bitcoin from about $36,500, citing higher seasonal power costs.

Where the profit came from

The income statement shows a $197.3 million gain on digital assets in Q3, against a $71.2 million digital-asset loss in Q2. A $64.3 million loss on derivatives cut the other way. Adjusted EBITDA, a non-GAAP measure defined in the release, was about $221 million, versus an Adjusted EBITDA loss of about $45.0 million in Q2.

American Bitcoin is a majority-owned subsidiary of Hut 8 and trades as ABTC. It combines self-mining with a strategic bitcoin reserve. Holdings rose from about 8,002 bitcoin on June 30 to about 8,427 on Sept. 30, including about 3,090 bitcoin pledged for miner purchases under Bitmain agreements, the release says. Satoshis per share, the company's metric of bitcoin attributable to each common share, rose about 5% over the quarter.

How fair-value accounting works here: when bitcoin's market price rises, companies that mark holdings to fair value can book paper gains through net income even if they do not sell. Those gains can reverse if prices fall. The 10-Q for the period ended Sept. 30 shows the same $126.0 million net income and lists bitcoin holdings at a fair value of $257.8 million at quarter-end against a $371.7 million miner purchase liability. Gross margin on mining was about 41% in Q3, down from about 49% in Q2. The owned fleet stood at about 89,242 miners and about 28.1 EH/s of capacity at quarter-end.

Bitcoin traded near $80,240 at 5:57 a.m. ET Thursday, per CoinGecko.

In our opinion: the stake for readers is how much of the $126 million is cash mining profit versus mark-to-market. The release's own table puts the digital-asset gain at $197.3 million and the derivative loss at $64.3 million, so the swing lives mostly in accounting on the bitcoin pile. The next checkable figure is whether Satoshis per share keeps rising after power costs eased from the summer peak.