American Bitcoin’s $126M Profit Fueled by Bitcoin Gain

American Bitcoin reported net income of $126 million for the third quarter of 2026, largely because of a $197.3 million noncash gain on digital assets, while its mining revenue and production fell and the cost to mine each bitcoin rose. The company’s results for the three months ended September 30 show a sharp contrast between gains in the value of its Bitcoin holdings and weaker operating measures. Mining revenue was $63.4 million, down from $67 million in the second quarter. Production fell to about 891 BTC from 932 BTC. The average cost to mine one bitcoin rose to about $42,100 from $36,500, according to company results. American Bitcoin attributed the increase primarily to electricity costs. Gross mining profit declined to $25.8 million from $33 million, and the reported mining margin fell to 41% from 49%. The company said its net income included a noncash gain tied to the value of its digital assets. Excluding gains on its Bitcoin holdings, American Bitcoin would have reported an operating loss of about $5.5 million, according to its financial statements. It also recorded a separate $64.3 million loss on derivatives. The company’s $126 million net income reversed a $57.2...