American Bitcoin Swings to Third-Quarter Profit With $126 Million Net Income
Summary
- American Bitcoin said third-quarter net income came to about $126 million, marking a return to profit.
- The company said the earnings improvement was driven by a $197.3 million gain in digital-asset-related profit and loss.
- By contrast, mining revenue and Bitcoin production fell, while the cost to mine one Bitcoin rose 15.3%.
Forecast Trend Report by Period
American Bitcoin, a Bitcoin mining company co-founded by Eric Trump, the second son of U.S. President Donald Trump, swung to a profit in the third quarter.
In a filing on November 4, the company reported third-quarter net income of about $126 million, reversing a net loss of $57.2 million in the previous quarter. Adjusted EBITDA also swung to a profit of $220.8 million from a loss of $45 million in the prior quarter.
The improvement was driven by gains related to digital assets. The company posted a profit of $197.3 million in that category in the third quarter, compared with a loss of $71.2 million in the previous quarter.
Profitability in the mining business, however, weakened. Mining revenue fell 5.4% to $63.4 million in the third quarter from $67 million in the second quarter. Bitcoin production also declined about 4.4% over the same period, to 891 from 932.
The cost to mine one Bitcoin rose 15.3% to about $42,100 from about $36,500. American Bitcoin said seasonal increases in electricity costs pushed up mining costs.
American Bitcoin's holdings stood at 8,427 Bitcoin as of the third quarter. That represented an increase of about 425 Bitcoin from mining during the quarter.
