TL;DR
- ABTC posted a net profit of $3.47 million in Q3, reversing the $576,000 loss from the previous year.
- The company, 20% owned by the Trump family and 80% by Hut 8, increased its mining capacity to 25 EH/s.
- The stock fell 13% in pre-market trading, dragged down by Bitcoin’s drop below $97,000.
In its first full quarter as a public entity, American Bitcoin’s (ABTC) financial outlook appears solid, defying a volatile market. The Miami-based company, notably 20% owned by Donald Trump Jr. and Eric Trump, announced a net profit of $3.47 million. This result marks a spectacular turnaround from the $576,000 loss recorded in the same period last year.
In their SEC filing, they indicated that revenue quintupled, reaching $64.2 million. This financial milestone follows the company’s recent restructuring, which completed its merger with Gryphon Digital Mining and spun off from Hut 8’s (HUT) mining operations. Hut 8, however, retains a majority stake of approximately 80% in the new entity. American Bitcoin (ABTC) reporting significant profits comes at a crucial moment in its corporate expansion.
Operational Expansion and BTC Accumulation
The aggressive expansion of its mining capacity has undoubtedly been the engine driving its revenue. This quarter alone, American Bitcoin multiplied its hash power by 2.5, reaching an impressive 25 exahash per second (EH/s). The company also highlighted its fleet’s efficiency, averaging about 16.3 joules per terahash (J/T), a key metric for mining profitability in a competitive environment.
Not only have they expanded their infrastructure, but they have also optimized their treasury strategy, betting on the accumulation of the digital asset. ABTC added 3,000 BTC to its reserves during the third quarter, ending the period with 3,418 BTC on its balance sheet. Furthermore, a recent post on the X platform earlier this month updated that figure, confirming that American Bitcoin now holds 4,004 BTC, equivalent to 432 satoshis per share (the smallest fraction of a bitcoin).
Despite American Bitcoin (ABTC) reporting robust earnings and notable operational growth, the initial market reaction was negative. The company’s shares (ABTC) fell as much as 13% in pre-market trading this Friday.
However, this drop appears decoupled from the company’s operational performance and more tied to the general weakness of the crypto market. Bitcoin’s price experienced a sharp correction, plunging 7% in the past 24 hours and falling below the key support of $97,000, dragging mining company stocks along with it, as they typically operate with a high correlation and beta relative to the digital asset.
