American Bitcoin Corp. (Nasdaq: ABTC) reported approximately $126 million in net income for the third quarter on Wednesday, a sharp swing from the $57.2 million loss it posted in the prior quarter. The result, however, rested largely on a $197.3 million gain in the value of the company's bitcoin holdings rather than on its mining operations.

The Miami-based miner and bitcoin treasury company, a majority-owned subsidiary of Hut 8 Corp. that was co-founded with Trump family backing, mined about 891 bitcoin during the quarter at a cost of roughly $42,100 per coin and ended September holding about 8,427 BTC.

Mining revenue came in at about $63.4 million, down from roughly $67.0 million in the second quarter. Gross profit was about $25.8 million, a 41% margin, compared with about $33.0 million and a 49% margin a quarter earlier, as seasonal power costs rose across the company's sites. Adjusted EBITDA reached approximately $221 million, against an Adjusted EBITDA loss of about $45.0 million in the second quarter, according to the company's release.

Eric Trump, co-founder and chief strategy officer of American Bitcoin, said the quarter delivered the net income and Adjusted EBITDA figures while the company grew its bitcoin reserve and bitcoin per share. Chief Executive Mike Ho said the firm kept mining at a structural discount to spot and raised satoshis per share by about 5% without issuing shares through its at-the-market program or buying bitcoin on the open market.

A paper gain carried the quarter

The income statement makes the primary driver plain. American Bitcoin booked a $197.3 million gain on digital assets in the third quarter, after recording a $71.2 million loss on that line in the second. Operating income was about $191.8 million, while other expenses included a $64.3 million loss on derivatives.

That pattern reflects the fair-value accounting now applied to digital asset holdings: companies must mark their bitcoin to market every reporting period, so price swings flow directly through net income and can dominate a quarter's results regardless of how operations performed.

Setting the mark-to-market move aside, the underlying operating story looks quieter. Revenue per bitcoin mined was about $71,100, down slightly from about $71,900 in the second quarter, while the cost to mine rose to about $42,100 from roughly $36,500, the company said. That spread between what each coin earns and what it costs to produce is the core margin equation in mining, and it tightens quickly when power prices climb.

Production of about 891 bitcoin came in below the second quarter's roughly 932 coins, which the company had called its highest quarterly haul on record when it reported a $57.2 million loss alongside an increase in holdings to about 8,002 BTC.

American Bitcoin said it sold a portion of production to cover operating costs while still adding to its strategic reserve. Holdings rose by about 425 bitcoin, or roughly 5%, to approximately 8,427 as of Sept. 30. That total includes about 3,090 bitcoin pledged for miner purchases under agreements with Bitmain, one of the bitcoin mining industry's largest hardware suppliers.

Reserve up, satoshis per share up

Management's preferred yardstick, satoshis per share, rose about 5% to roughly 11,572 from about 10,989 at the end of June. A satoshi is the smallest unit of bitcoin, and per-share reserve figures like this are a standard way for bitcoin treasury companies to show whether coin accumulation is outpacing share issuance. The share count reflects a 1-for-15 reverse stock split effected earlier this year on July 2.

The company's owned fleet stood at about 89,242 bitcoin miners with roughly 28.1 EH/s of capacity — exahashes per second, a gauge of the computing power devoted to mining — at quarter-end. American Bitcoin remains majority-owned by Hut 8, which reported its own third-quarter results the same day and confirmed that it sold bitcoin to fund share buybacks while shifting mining into the American Bitcoin vehicle.

Eric Trump and Donald Trump Jr. helped launch the venture with Hut 8 in 2025; earlier Bitcoin Magazine coverage has put the Trump family's stake near 20%, with Hut 8 holding the rest. The company has climbed the corporate bitcoin treasury ranks as it has stacked coins since its Nasdaq debut.

Whether another quarter of bitcoin price gains can keep paper profits ahead of higher power costs and thinner mining margins is the question the release leaves open. At the time of writing, the bitcoin price is above $80,500, and shares of American Bitcoin were down more than 5.5% on the day.

This article first appeared on Bitcoin Magazine and is written by Micah Zimmerman.