Eric Trump's American Bitcoin swung to a $126 million Q3 profit, but declining mining revenue and falling margins weighed on its stock.

Table of contents
  • American Bitcoin reported $126 million in Q3 net income, reversing a $57.2 million loss in the previous quarter, largely due to gains in the market value of its Bitcoin holdings
  • Mining revenue fell to $63.4 million from $67 million in Q2, while Bitcoin production declined to 891 BTC and mining costs increased
  • ABTC shares have dropped approximately 28% over the past month despite the return to profitability and expansion of the company's Bitcoin reserves to 8,427 BTC

American Bitcoin, the Bitcoin mining company co-founded by Eric Trump, has reported $126 million in net income for the third quarter of 2026. Despite reversing a $57.2 million loss in the previous quarter, the company's shares have fallen approximately 27% over the past month as investors’ sentiment wanes.

American Bitcoin releases impressive Q3 numbers as stock underperforms

The Miami-based company reported $125.99 million in net income for the three months ended September 30, compared with a $57.15 million net loss in Q2. Per the disclosures, its adjusted EBITDA also swung to $220.8 million from a loss of $45 million in the previous quarter.

However, the headline profit was largely driven by the appreciation of its Bitcoin holdings rather than stronger mining operations. According to its earnings report, American Bitcoin recorded a $197.3 million gain on digital assets during the quarter, compared with a $71.2 million loss in Q2. 

American Bitcoin's earnings turnaround has yet to reverse the broader weakness in its stock. Shares closed at $6.24 on November 4, down 5.6% during the trading session. American Bitcoin stock had also lost approximately 26.7% over the preceding month, underscoring a waning investors’ sentiment.

Despite the profit turnaround, American Bitcoin's mining business recorded weaker performance during the quarter. Revenue declined to $63.4 million from $67 million in Q2, missing analysts' average estimate of approximately $74 million. The company also mined 891 Bitcoin, down from 932 BTC in the previous quarter.

Meanwhile, higher electricity costs weighed on profitability. American Bitcoin's cost of mining one Bitcoin increased to approximately $42,100 from $36,500 in Q2, primarily because of seasonal power price increases.

Gross profit fell to $25.8 million from $33 million, while gross margin contracted from 49% to 41%. The company ended September with approximately 89,242 Bitcoin mining machines and computing capacity of 28.1 exahashes per second.

Bitcoin reserves grow despite weaker production

American Bitcoin continued expanding its Bitcoin reserves during the quarter, increasing its holdings by approximately 425 BTC to 8,427 BTC as of September 30. The company said it did not purchase Bitcoin or issue shares through its at-the-market offering program during the quarter.

It also reported a roughly 5% increase in Satoshis Per Share, from approximately 10,989 at the end of June to 11,572 at the end of September. However, approximately 3,090 BTC in its holdings were pledged for miner purchases under agreements with Bitmain. 

“Despite seasonal power cost pressures, we continued mining Bitcoin at a structural discount to spot, grew our strategic reserve and increased Satoshi Per Square by approximately 5%, all without issuing shares through our ATM program or purchasing Bitcoin during the quarter,” said American Bitcoin CEO Mike Ho.

Source: American Bitcoin

Eric Trump, who serves as co-founder and chief strategy officer, said the company was focused on accumulating Bitcoin while building infrastructure around the cryptocurrency and American energy. Last year, Eric Trump’s stake in American Bitcoin neared $1 billion as the stock made its market debut.

Aliyu Pokima is an accomplished journalist with a keen focus on cryptocurrencies and emerging technology. He has over five years of active newsroom experience under his belt, honing his craft across leading publications in the industry. His work focuses on macro trends, digital asset policies, and breaking Web 3 stories. When he's not poring over charts and following leads, he spends time volunteering and reading fiction.