American Bitcoin: $126 million profit, but mining lost ground

American Bitcoin reported on November 4 a net profit of about $126 million for the third quarter of 2026, compared with a $57.2 million loss in the previous quarter. The turnaround came mainly from a $197.3 million non-cash gain on the rise in value of the Bitcoin it holds, while mining revenue and margins declined.

Where did American Bitcoin’s profit come from?

The rise in the value of its Bitcoin holdings, not an improvement in mining, was the main driver of profitability. According to BeInCrypto, CEO Mike Ho explained that the fair-value gain reflected BTC’s rise of about 39% during the quarter.

Operating income reached $191.8 million, but that included the $197.3 million from digital assets. Without that effect, the operating result would have been a loss of about $5.5 million. This is not a calculation of net losses, but it is a useful distinction for seeing what the business earned beyond the appreciation of its BTC.

Think of a business that sees the value of its inventory rise while its production costs increase. The improvement on the balance sheet is real as a valuation, but it doesn’t mean the same amount of cash came in.

Why was Bitcoin mining under pressure?

Higher seasonal electricity costs squeezed mining margins, according to the company. The production cost per BTC rose to about $42,100 from $36,500 in the second quarter.

At the same time, production fell to about 891 BTC from 932 BTC. Mining revenue dropped to $63.4 million from $67 million, while the gross margin narrowed to 41% from 49%. Gross profit came in at $25.8 million, compared with about $33 million previously.

Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) reached $220.8 million. They need to be read with care, though: the metric keeps the fair-value gain on digital assets while adding back a $64.3 million loss on derivatives, as BeInCrypto points out.

How did the holdings grow to 8,427 BTC?

American Bitcoin increased its holdings by about 425 BTC, even though it sold part of its output to cover expenses. In its earnings update it reported sales of about 465 BTC, with total holdings reaching 8,427 BTC as of September 30.

According to Bitcoin Magazine, about 3,090 of these were pledged for mining machine purchases under agreements with Bitmain. So the total figure needs that clarification next to it.

Management stressed that the holdings grew without buying BTC on the market and without issuing shares through its at-the-market sales program. Satoshis per share, that is, the fractions of a Bitcoin that correspond to each share, rose about 5%.

What are we watching in the fourth quarter?

The same valuation that boosted the results can work in reverse if Bitcoin falls. In the second quarter, after all, the company had booked a $71.2 million loss on its digital assets.

American Bitcoin, in which Hut 8 holds a majority stake and which Eric Trump co-founded, combines mining with BTC accumulation. In our view, this is also the main trap for readers in Greece who follow such listed companies: an increase in Bitcoin per share does not, on its own, prove that production has improved. In the next results, we will track electricity costs, mining margins and the effect of the BTC price separately.