American Bitcoin, backed by Eric Trump, announced a net profit of $126 million in its quarterly results, largely fueled by a $197.3 million non-cash gain from its Bitcoin holdings. However, declining mining revenue and rising production costs raised concerns about the company’s core operations.
Bitcoin Holdings Drive Earnings
The company’s mining revenue fell by 5.5% to $63.4 million from the previous quarter. Meanwhile, the cost of producing 1 BTC surged by approximately 15%, reaching $42,100. Excluding the value increase of its Bitcoin assets, the company would have reported an operating loss of about $5.5 million. Additionally, a separate $64.3 million loss was recorded in derivative transactions.
American Bitcoin CEO Mike Ho stated, “Despite seasonal electricity cost pressures, we managed to maintain Bitcoin production below the spot price.”
Earnings per share stood at $1.73, significantly surpassing analysts’ consensus estimate of $0.26. However, the company’s quarterly revenue of $63.4 million fell approximately 15% short of market expectations at $74.35 million.
Mining Efficiency Declines
American Bitcoin’s gross mining profit dropped from $33 million in the previous quarter to $25.8 million, with mining margins decreasing from 49% to 41%. This contraction highlighted the reduced share of mining revenue remaining after direct costs.
During the quarter, the company produced 891 BTC, down from 932 BTC in the previous three-month period. The company attributed the cost increase primarily to rising electricity prices. While revenue slightly decreased from $64.2 million to $63.4 million year-on-year, net profit surged from $3.5 million to $126 million.
David Gamble, founder of Enigma Holdings, commented, “Producing Bitcoin below market price does not automatically create shareholder value; long-term sustainability must also be assessed.”
Competitors Eye Artificial Intelligence
The results highlighted a strategic divergence among Bitcoin miners. While American Bitcoin continues focusing on mining and accumulating BTC, competitors like Riot Platforms, MARA Holdings, and Core Scientific are investing in artificial intelligence ventures for new revenue streams. By the end of September, American Bitcoin held 8,427 BTC, up from 3,418 BTC a year earlier.
Glossary: Hashrate refers to the number of calculations a mining device or network can perform per second. It is considered a fundamental indicator of competitive power and production capacity in mining.
Gamble added that the sector’s competitive edge is increasingly shifting toward energy infrastructure. He emphasized that now, competitiveness is not just about Bitcoin production or deploying higher hashrates, but about where capital is more effectively utilized, especially when competing against AI data centers vying for the same electricity resources.
Bitcoin was trading at $76,119, down 5% in the last 24 hours as of 20:50 UTC. Meanwhile, shares of American Bitcoin closed Thursday with a near 15% drop at $5.31.
