American Bitcoin’s $126M Profit Hides Mining Struggles As Rivals Pivot To AI

• American Bitcoin reported $126 million in quarterly net income, largely driven by a $197.3 million noncash gain on its Bitcoin holdings.
• Mining revenue fell 5.5% quarter-over-quarter to $63.4 million, while Bitcoin mining costs rose 15% to $42,100 per BTC.
• Gross mining profit declined to $25.8 million, and the mining margin dropped from 49% to 41%.

American Bitcoin announced a net income of $126 million. Yet most of that income came from gains on Bitcoin holdings, not from mining activities. This has raised doubts about the sustainability of American Bitcoin’s business model, especially as competitors expand into intelligence (AI).

Source: abtc.com

The Eric Trump-backed miner recorded a noncash gain of $197.3 million on Bitcoin holdings. However mining revenue dropped 5.5% quarter-over-quarter to $63.4 million. At the time the cost of mining one Bitcoin rose about 15% to $42,100.

If the gains from Bitcoin holdings were not counted, the company would have shown an operating loss of about $5.5 million. Additionally, the company recorded a loss of $64.3 million on derivatives.

American Bitcoin Mining Revenue Faces Pressure Despite CEO’s Cost Advantage Claim

American Bitcoin’s gross mining profit fell to $25.8 million from $33 million in the quarter. The mining margin also slipped from 49% to 41%. The miner produced 891 Bitcoin compared with 932 Bitcoin the quarter and blamed higher electricity costs for the drop.

Despite these challenges CEO Mike Ho said that American Bitcoin keeps mining Bitcoin at a discount to market price even with seasonal rises, in power costs.

Bitcoin Miners Turn To AI As Competition Intensifies

American Bitcoin’s results show that Bitcoin miners face challenges. Electricity costs are high and mining difficulty is rising, which pressurizes Bitcoin profitability.

Other companies are looking at AI infrastructure to make money. Riot Platforms is building AI data center capacity. MARA Holdings is moving into AI. Still keeps its Bitcoin mining.

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% quarter-over-quarter
• ~891 Bitcoin mined during the quarter
• ~$63.4 million in revenue

Our focus remains on growing Bitcoin per share through disciplined operations, thoughtful capital allocation and a long-term commitment to Bitcoin.

Read our Q3 results: https://t.co/MyQzjK87SY

— American Bitcoin (@ABTC) November 4, 2026

Core Scientific has moved a part of its business to AI infrastructure. American Bitcoin still focuses on buying Bitcoin. It owned 8,427 BTC at the end of September, up from 3,418 BTC a year earlier.

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