American Bitcoin Corp. reported about $126 million in net income for the third quarter, reversing a $57.2 million loss in the prior quarter. The company’s results were driven largely by a $197.3 million gain on its bitcoin holdings, rather than by mining revenue.
The Miami-based miner and treasury company mined about 891 bitcoin during the quarter at an average cost of roughly $42,100 per coin. It ended September with approximately 8,427 BTC, up around 425 bitcoin, or 5%, from the end of June. The total includes about 3,090 bitcoin pledged for miner purchases under agreements with Bitmain.
Mining revenue fell to about $63.4 million from $67 million in the second quarter. Gross profit was about $25.8 million, with a 41% margin, compared with $33 million and a 49% margin in the previous quarter. The company attributed higher costs in part to seasonal increases in power prices across its sites.
The company recorded a $197.3 million gain on digital assets, compared with a $71.2 million loss on that line in the second quarter. Operating income was about $191.8 million, while other expenses included a $64.3 million loss on derivatives. Adjusted EBITDA was about $221 million, compared with a loss of roughly $45 million in the prior quarter.
Revenue per bitcoin mined was about $71,100, slightly below the previous quarter’s $71,900, while the cost to mine each coin rose from roughly $36,500 to $42,100. Production also eased from about 932 bitcoin in the second quarter. American Bitcoin said it sold part of its production to cover operating costs while continuing to build its reserve.
Management said satoshis per share increased by about 5% to roughly 11,572 from 10,989 at the end of June. Chief Executive Mike Ho said the company increased that measure without issuing shares through its at-the-market program or buying bitcoin on the open market. At quarter-end, its owned fleet comprised about 89,242 miners, with roughly 28.1 EH/s of capacity.
Sources: Bitcoin Magazine.