Eric Trump’s American Bitcoin Posts $126 Million Q3 Profit on Digital Asset Gains

American Bitcoin returned to profitability in the third quarter, supported by a $197.34 million gain on digital assets as its bitcoin reserves increased to 8,427 BTC. The gain helped offset weaker mining revenue and rising production costs.

The bitcoin mining company, co-founded by Eric Trump, posted net income of $126 million for the three months ended Sept. 30, according to a company statement. That compares with a net loss of $57.2 million in the previous quarter, when the company recorded a $71.2 million loss on its digital assets.

American Bitcoin also reported positive adjusted EBITDA of $220.8 million, reversing a loss of $45 million in Q2. However, mining revenue declined 5.4% from the prior quarter, falling to $63.4 million from $67 million. Bitcoin output also decreased 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.”

The company said production costs increased 15.3%, reaching approximately $42,100 compared with $36,500. Its gross margin narrowed to 41% from 49%, while gross profit fell to $25.8 million from $33 million.

Bitcoin holdings rise

American Bitcoin said it sold part of the bitcoin it mined during the quarter to fund operating expenses. It added approximately 425 BTC to its reserve and made no bitcoin purchases during the period, bringing its total holdings to 8,427 BTC at the end of September.

The company’s shares closed 5.6% lower on Wednesday, but gained 2.4% in after-hours trading after the earnings release. The stock had fallen 76% since the beginning of the year.

Other mining companies also reported sizable gains on digital assets. Hut 8 posted net income of $189.5 million in Q3, which included $413.8 million in gains on digital assets, primarily unrealized.

Riot Platforms reported quarterly revenue of $181.4 million, including $116 million generated by bitcoin mining.