American Bitcoin Corp. reported net income of approximately $126 million for the third quarter of 2026, swinging from a $57.2 million loss in the second quarter. The Miami-based company, a majority-owned subsidiary of Hut 8 and co-founded with Trump family involvement, attributed the turnaround primarily to a $197.3 million gain on the fair value of its Bitcoin holdings.

The results, released after markets closed on November 4, showed that changes in Bitcoin’s market price flowed directly through the income statement under the company’s accounting treatment. Bitcoin rose from roughly $59,847 at the end of June to about $83,415 by September 30, lifting the value of the firm’s reserve even as operating metrics softened.

Digital-Asset Gains Drive Bottom Line

The $197.3 million digital-asset gain reversed a $71.2 million valuation loss recorded in the prior quarter. Operating income reached about $191.8 million. A separate $64.3 million loss on derivatives, largely tied to Bitcoin-linked options connected to equipment agreements with Bitmain, partially offset the gains.

Adjusted EBITDA, a non-GAAP measure, came in at approximately $221 million, compared with an Adjusted EBITDA loss of $45 million in the second quarter. The company noted that the profit was not generated solely by mining operations or coin sales.

Mining Operations Face Margin Pressure

Mining revenue declined to $63.4 million from $67 million in the second quarter. The company produced approximately 891 Bitcoin, down from 932 previously. Average revenue per Bitcoin mined slipped slightly to about $71,100 from $71,900.

The cost to mine one Bitcoin rose to roughly $42,100 from $36,500, driven mainly by higher seasonal electricity expenses at the firm’s sites. Gross profit fell to $25.8 million, and gross margin narrowed to 41% from 49%. American Bitcoin sold a portion of its newly mined coins to cover operating expenses while retaining the rest for its reserve.

At quarter-end the company owned approximately 89,242 mining machines with 28.1 exahashes per second of capacity. Production in the period represented about 21% of all Bitcoin the firm has mined since its March 2025 launch.

Reserve and Per-Share Metrics Expand

Bitcoin holdings increased by about 425 coins, or roughly 5%, to 8,427 Bitcoin as of September 30 from approximately 8,002 at the end of June. Of the total, 3,090 Bitcoin remained pledged under miner-purchase arrangements with Bitmain. The remaining coins were held in custody. The reserve was valued at about $702.9 million at quarter-end, up from $478.9 million three months earlier.

Satoshis Per Share, the company’s preferred metric of Bitcoin attributable to each outstanding common share, rose approximately 5% to about 11,572 from 10,989. The share count reflects a 1-for-15 reverse stock split completed in early July. Management emphasized that the reserve growth occurred without any purchases of Bitcoin or sales of shares under the company’s at-the-market equity program during the quarter.

The company previously sold 7.76 million Class A shares through its at-the-market program during the first nine months of 2026, generating $144.7 million in gross proceeds. No such issuance occurred in the third quarter itself. Cash used in operating activities for the nine-month period totaled $72.4 million.

Shares of American Bitcoin closed down about 5.6% on November 4 prior to the after-hours release. The firm scheduled an earnings conference call for the same afternoon and indicated it would provide additional supplemental data on its website and social channels.