TLDR
- American Bitcoin (ABTC) stock closed Thursday down about 15% at $5.31.
- Q3 net income hit $126 million, but $197.3 million was a noncash bitcoin gain.
- Revenue of $63.4 million missed the roughly $74 million estimate.
- Mining costs rose to $42,100 per bitcoin, and gross margin fell to 41%.
- The company held 8,427 BTC while rivals pushed into AI data centers.
American Bitcoin (ABTC) stock closed Thursday down about 15% at $5.31. The Trump-linked miner had reported third-quarter results the night before.
On paper, the numbers looked strong. Net income hit $126 million, reversing a $57.2 million loss in the second quarter.
Most of that came from a $197.3 million noncash gain on its bitcoin holdings. Without it, the company would have posted an operating loss of about $5.5 million.
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
The company also booked a $64.3 million loss on derivatives. That sits apart from the bitcoin gain.
Earnings per share came in at $1.73, well above the $0.26 analysts expected. Revenue told a different story.
Revenue fell to $63.4 million from $67 million in the second quarter. Analysts had expected about $74 million, a miss of nearly 15%.
The stock had already slipped 5.6% on Wednesday to close at $6.24. It traded about 1.75% higher at $6.35 in pre-market action Thursday before the selling set in.
Costs Rise as Margins Shrink
The company mined 891 bitcoin, down from 932 in the second quarter. Each coin cost more to produce.
Mining costs rose to $42,100 per bitcoin from $36,500. Higher summer electricity prices were the main reason.
Gross profit dropped to $25.8 million from $33 million. Gross margin slid to 41% from 49%.
Compared with a year ago, revenue was nearly flat at $63.4 million versus $64.2 million. Reported profit jumped from $3.5 million to $126 million.
CEO Mike Ho said the company kept mining “at a structural discount to spot” despite seasonal power cost pressures. He added that the firm grew its reserve and lifted Satoshis Per Share by about 5%.
Holding Bitcoin While Rivals Chase AI
American Bitcoin held 8,427 BTC at the end of September, up from 8,002 three months earlier. It bought none during the quarter and issued no stock through its at-the-market program.
About 3,090 of those coins are pledged for miner purchases. Majority-owned by Hut 8, the company ended September with about 89,242 mining machines.
Riot Platforms, MARA Holdings and Core Scientific are putting money into AI. Core Scientific has already moved much of its business to AI data centers.
Enigma Holdings founder David Gamble told Cointelegraph that mining below market price “doesn’t automatically mean you’re creating shareholder value.” He said the accumulation plan is not flawed but raises questions about long-term sustainability.
Adjusted EBITDA reached $220.8 million, compared with a $45 million loss in the second quarter. Bitcoin traded near $76,119 late Thursday, down 5% over 24 hours.
