American Bitcoin (NASDAQ: ABTC), the Bitcoin miner co-founded by Eric Trump, reported net income of $126 million for the third quarter of 2026, according to its latest earnings report — a sharp reversal from the $57.2 million net loss recorded in the second quarter. The bulk of the gain came from a Bitcoin rally that added $197.3 million to the company's bottom line, rather than from its mining operations. The firm holds 8,427 BTC in its corporate treasury.

The results were disclosed in a press release and Exhibit 99.1 filed with the U.S. Securities and Exchange Commission, alongside a quarterly report covering the period ended September 30, 2026.

Profits swing with Bitcoin's price

The swing from loss to profit was driven primarily by a 40% surge in Bitcoin's price over the three months ended September 30, the asset's best quarter since late 2024. Bitcoin finished the period near $83,600 and was trading close to $80,300 at the time of writing. By comparison, American Bitcoin had reported a $71.2 million loss on digital assets in the second quarter. The results track the price of the company's corporate Bitcoin holdings more closely than its mining performance. That sensitivity is built into the reporting itself: under US accounting standards, corporate Bitcoin holdings are marked to fair value each quarter, so unrealized gains and losses flow straight into net income even when no coins are bought or sold.

Excluding paper gains on the company's Bitcoin reserve, the outlook is less flattering. Mining revenue fell 5.4% quarter-over-quarter to $63.4 million as production slipped from 932 BTC to 891 BTC. Operating costs moved in the opposite direction: mining a single Bitcoin now costs roughly $42,100, a 15.3% increase the company attributed to seasonal power prices across its sites. Gross profit declined from $33 million to $25.8 million, while gross margin contracted from 49% to 41%.

Industry conditions added pressure as miners compete for smaller rewards following the 2024 halving, which cut the block subsidy to 3.125 BTC. Bitcoin network difficulty reached a record 148.4 trillion on October 29, and hashprice — a measure of daily revenue per unit of computing power — fell to its lowest level since August.

American Bitcoin did not purchase any Bitcoin during the quarter. It sold part of the roughly 425 BTC it produced to fund operations and directed the unsold remainder into its reserve, which stands at 8,427 BTC. Because the reserve is built from retained production rather than open-market buying, future filings will keep pairing mining results with mark-to-market swings on the treasury, making the gap between paper gains and mining economics a recurring number to watch.

Co-founder and chief strategy officer Eric Trump described the results as “significant” in “a challenging digital asset market” and said the opportunity “extends beyond any single quarter.”

ABTC resists the Bitcoin-to-AI pivot

While many publicly traded Bitcoin miners have pivoted toward AI computing in pursuit of profitability, American Bitcoin remains a pure-play Bitcoin miner. According to CoinShares, listed miners have signed more than $70 billion in AI and high-performance computing (HPC) deals, and the research firm estimates AI could supply as much as 70% of miners' revenue by late 2026.

American Bitcoin's majority owner, Hut 8, reported $189.5 million in third-quarter net income and said it had fully commercialized its Beacon Point AI data center campus.

Investors have not treated the quarter as a turnaround. ABTC shares closed down 5.6% on Wednesday and rose 2.4% in after-hours trading once the earnings landed. The stock is down 76% so far in 2026. The company executed a 1-for-15 reverse stock split in July to stay above Nasdaq's minimum bid price rule. Upcoming filings will show whether seasonal power costs ease and how the pure-play model fares at record network difficulty.

Source: Cryptopolitan