American Bitcoin reports $126 million Q3 profit on Bitcoin gains

American Bitcoin reported net income of $126 million for the three months ended September 30, reversing a $57.2 million loss in the previous quarter. The company’s results were driven largely by a gain in the value of its Bitcoin holdings, while mining revenue, production and gross margin declined. The company recorded a $197.3 million gain on digital assets and a separate $64.3 million loss on derivatives. Its adjusted EBITDA was $220.8 million, compared with a $45 million loss in the second quarter. Because the digital-asset gain reflects changes in Bitcoin’s market value, the net income figure does not represent earnings generated solely by mining operations. Mining revenue fell to $63.4 million from $67 million in the previous quarter. American Bitcoin produced about 891 BTC, down from 932 BTC, and gross profit decreased to $25.8 million from $33 million. Its gross margin narrowed to 41% from 49%. The company said the average cost to mine one Bitcoin rose to about $42,100 from $36,500, attributing the increase primarily to seasonal electricity expenses. CEO Mike Ho said the company continued mining Bitcoin at a structural discount to spot despite seasonal power costs. The...