Eric Trump's American Bitcoin swings to $126 million profit in Q3 on digital asset gains

American Bitcoin swung to profit in the third quarter after recording a $197.3 million gain on digital assets, offsetting weaker mining revenue and higher production costs.

The bitcoin miner, co-founded by Eric Trump, reported net income of $126 million for the three months ended Sept. 30, compared with a $57.2 million net loss in the previous quarter, according to a statement. The company booked a $71.2 million loss on its digital assets in the previous quarter. 

American Bitcoin said adjusted EBITDA also turned positive at $220.8 million, from a loss of $45 million in Q2. Mining revenue, however, fell 5.4% quarter over quarter to $63.4 million from $67 million, while bitcoin production declined 4.4% to approximately 891 BTC from 932 BTC.

"These are significant results, particularly in a challenging digital asset market, and they reflect the discipline and long-term conviction behind this business," Eric Trump said in the statement. "But our opportunity extends beyond any single quarter."

On production costs, the company said its expenditure rose 15.3% to approximately $42,100 from $36,500. Gross margin fell to 41% from 49%, while gross profit declined to $25.8 million from $33 million.

Bitcoin holdings rise

American Bitcoin sold a portion of its quarterly bitcoin production to cover operating costs, the company said, while adding about 425 BTC to its reserve and making no purchases during the period. This brought its total holdings to 8,427 BTC at the end of September. 

The company's shares closed down 5.6% on Wednesday but climbed 2.4% in extended trading following the earnings release. The stock was down 76% year-to-date.

Meanwhile, other miners also reported substantial digital asset gains. Hut 8 posted $189.5 million in Q3 net income, including $413.8 million in primarily unrealized digital asset gains. 

Riot Platforms reported $181.4 million in quarterly revenue, including $116 million from bitcoin mining.