CoinDesk
American Bitcoin reported third-quarter revenue of $63.4 million, below the roughly $74 million analysts expected, as Bitcoin production fell and summer electricity prices pushed mining costs higher. The Eric Trump co-founded miner posted a $126 million profit, reversing a $57.2 million loss in the preceding quarter, after recording a $197.3 million accounting gain on digital assets.
Why it matters
The company mined 891 BTC, down from 932 in the second quarter, while its cost per Bitcoin rose to $42,100 from $36,500. Gross profit fell to $25.8 million from $33 million, and gross margin narrowed to 41% from 49%.
American Bitcoin, which is majority-owned by Hut 8, continued to mine and hold Bitcoin while other listed miners shifted toward artificial intelligence data centers and sold Bitcoin to fund expansion. Its holdings rose to 8,427 BTC from 8,002, despite no purchases during the quarter. About 3,090 BTC were pledged for miner purchases.
Market impact
Earnings per share of $1.73 exceeded the average analyst estimate of 26 cents, even as revenue missed forecasts and declined from $67 million in the prior quarter. The accounting gain was a major contributor to the profit swing, while the mining figures showed pressure on operating margins.
American Bitcoin shares traded about 1.75% higher at $6.35 in Thursday premarket trading, after closing 5.6% lower at $6.24 on Wednesday. The company ended September with about 89,242 mining machines and 28.1 exahashes per second of computing capacity.
Frequently asked questions
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What drove American Bitcoin's third-quarter profit?
The $126 million profit included a $197.3 million accounting gain on digital assets. The company had reported a $57.2 million loss in the preceding quarter.
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How did American Bitcoin's revenue compare with forecasts?
Revenue was $63.4 million, below the average analyst estimate of about $74 million and down from $67 million in the second quarter.
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Why did American Bitcoin's mining cost per coin increase?
Higher summer electricity prices pushed mining costs to $42,100 per Bitcoin from $36,500 in the previous quarter.
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How much Bitcoin did the company hold at quarter-end?
Its holdings rose to 8,427 BTC from 8,002 BTC, despite no purchases during the quarter. About 3,090 BTC were pledged for miner purchases.
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How did American Bitcoin shares react to the results?
Shares traded about 1.75% higher at $6.35 in Thursday premarket trading, after closing 5.6% lower at $6.24 on Wednesday.
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