American Bitcoin Swings to Q3 Profit, Posts $126 Million Net Income
Summary
- American Bitcoin said in a filing that it returned to profit in the third quarter, posting net income of about $126 million.
- The company said earnings were boosted by digital asset-related gains, where it recorded $197.3 million in profit in the third quarter.
- It also said profitability weakened as mining revenue and Bitcoin production fell, while the cost to mine one Bitcoin rose 15.3%.
Forecast Trend Report by Period
American Bitcoin, a Bitcoin mining company co-founded by Eric Trump, the second son of U.S. President Donald Trump, returned to profit in the third quarter.
In a filing on Nov. 4, the company reported net income of about $126 million for the third quarter, compared with a net loss of $57.2 million in the previous quarter. Adjusted EBITDA also swung to a profit of $220.8 million from a loss of $45 million in the prior quarter.
Results were driven by gains related to digital assets. The company posted a profit of $197.3 million in that category in the third quarter, versus a loss of $71.2 million in the previous quarter.
Profitability in the mining business, however, weakened. Mining revenue fell 5.4% to $63.4 million in the third quarter from $67 million in the second quarter. Over the same period, Bitcoin production declined about 4.4% to 891 from 932.
The cost of mining one Bitcoin rose 15.3% to about $42,100 from about $36,500. American Bitcoin said seasonal increases in electricity costs pushed up its Bitcoin mining costs.
American Bitcoin held 8,427 Bitcoin as of the third quarter. That total increased by about 425 Bitcoin through mining during the quarter.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul