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Trump-Backed American Bitcoin Turns a Profit as Bitcoin Rise Lifts Books
American Bitcoin, a Trump-family-backed Bitcoin mining company, reported a third-quarter profit of about $126 million, reversing a $57.2 million loss in the previous quarter. The result matters because it marks the company’s strongest showing yet, although much of the profit came from Bitcoin’s rising value rather than its mining operations.
The Nasdaq-listed firm held about 8,427 Bitcoin at the end of September, roughly 5% more than at the end of June, adding to its reserve through mining rather than purchases or new share issuance. It mined 891 Bitcoin, down from 932, while mining costs rose to about $42,100 per coin and gross margin fell from 49% to 41%. Its results remain exposed to Bitcoin’s price: the company recorded a $197 million gain on digital assets, and a downturn could reverse that boost.
In short
- American Bitcoin made $126 million in the third quarter.
- A $197 million Bitcoin valuation gain drove much of the profit.
- Mining costs rose as output and margins fell.
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The case for
Supporters could argue that American Bitcoin’s profit and larger Bitcoin reserve show it is building a valuable business, with mining adding to its holdings without purchases or new share issuance. The rise in Bitcoin’s value is a legitimate part of its reported performance, and the result may reflect both the asset’s appreciation and the company’s ability to keep accumulating it.
The case against
Sceptics could argue that the headline profit overstates the strength of the mining business, since a $197 million gain on Bitcoin holdings drove results while mining output fell, costs rose and gross margin narrowed. The company’s dependence on Bitcoin’s price leaves earnings vulnerable to a reversal, so one strong quarter may say little about whether its operations can sustain profitability.
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