American Bitcoin (ABTC) shares closed Thursday down about 15% at $5.31 after the Trump-linked bitcoin miner reported third-quarter revenue below analysts’ expectations.

The company reported $126 million in net income for the quarter, reversing a $57.2 million loss in the second quarter. However, $197.3 million of the profit came from a noncash gain on its bitcoin holdings — an effect of fair-value accounting, under which holdings are marked to market each quarter and reported earnings move with bitcoin’s price. Excluding that gain, American Bitcoin would have reported an operating loss of about $5.5 million.

The company also recorded a $64.3 million loss on derivatives. Earnings per share reached $1.73, compared with the $0.26 analysts had expected.

Revenue declined to $63.4 million from $67 million in the second quarter, missing the roughly $74 million analyst estimate by nearly 15%. Revenue was nearly unchanged from the year-earlier figure of $64.2 million.

American Bitcoin reported its Q3 2026 results in an official announcement: American Bitcoin reports third-quarter 2026 results.

American Bitcoin reported Q3 2026 results, delivering continued growth in our Bitcoin reserve and Satoshis Per Share. Key highlights: • 8,427 Bitcoin held as of September 30, up approximately 5% quarter-over-quarter • Satoshis Per Share increased approximately 5%… pic.twitter.com/w7b4FHM2bG — American Bitcoin (@ABTC) November 4, 2026

https://x.com/ABTC/status/2118108531945877553?ref_src=twsrc%5Etfw

The stock had already fallen 5.6% on Wednesday, closing at $6.24. It rose about 1.75% to $6.35 in premarket trading Thursday before the decline during the session.

Mining costs increase as margins narrow

American Bitcoin mined 891 bitcoin in the third quarter, down from 932 in the second quarter. Mining costs increased to $42,100 per bitcoin from $36,500, primarily because of higher summer electricity prices.

Gross profit fell to $25.8 million from $33 million, while gross margin declined to 41% from 49%. Despite the weaker operating performance, reported profit increased from $3.5 million a year earlier to $126 million.

CEO Mike Ho said the company continued to mine “at a structural discount to spot” despite seasonal pressure on power costs. He also said American Bitcoin expanded its reserve and increased Satoshis Per Share — the amount of bitcoin held for each outstanding share, measured in satoshis, bitcoin’s smallest unit — by approximately 5%.

Adjusted EBITDA reached $220.8 million, compared with a $45 million loss in the second quarter.

American Bitcoin maintains bitcoin-focused strategy

American Bitcoin held 8,427 BTC at the end of September, up from 8,002 three months earlier. The company did not purchase bitcoin during the quarter and did not issue shares through its at-the-market program. Approximately 3,090 of its bitcoin holdings were pledged for miner purchases, meaning more than a third of the reserve is committed rather than freely held.

The company, which is majority-owned by Hut 8, ended September with approximately 89,242 mining machines.

Riot Platforms, MARA Holdings and Core Scientific have been investing in artificial intelligence infrastructure. Core Scientific has already shifted much of its business toward AI data centers. American Bitcoin has kept its model pointed the other way — mining and accumulating bitcoin — leaving its quarterly results tied to power costs and bitcoin’s price rather than data-center revenue.

David Gamble, founder of Enigma Holdings, told Cointelegraph that mining below the market price “doesn’t automatically mean you’re creating shareholder value.” He said the accumulation strategy was not flawed but raised questions about its long-term sustainability.

Bitcoin traded near $76,119 late Thursday, down 5% over 24 hours — the price that will set the size of the next mark-to-market swing on the company’s 8,427 BTC reserve when fourth-quarter results are reported.