Key Highlights

  • Diluted EPS of USD 1.73 compares with a USD 0.06 loss estimate, on Net Income of USD 126.0 million.
  • Revenue was USD 63.35 million against an estimate of USD 74.09 million and USD 64.2 million last year.
  • A gain on digital Assets of USD 197.3 million was recorded, and the Bitcoin reserve reached approximately 8,427 Bitcoin.
  • Bitcoin mined was approximately 891 against approximately 563 a year earlier, while average Revenue per Bitcoin mined fell.

How did a company with lower revenue report net income of USD 126.0 million? American Bitcoin Corp. (NASDAQ:ABTC) reported third quarter revenue of USD 63.35 million, against USD 64.2 million a year earlier and an estimate of USD 74.09 million. Diluted EPS was USD 1.73, against an estimate of a USD 0.06 loss and USD 0.06 in the third quarter of 2025. The difference is traced to a USD 197.3 million gain on digital assets in the quarter, set against a USD 5.5 million loss a year earlier.

Mining Output and Revenue Per Bitcoin

Revenue came from Bitcoin rewards for computing services provided to Mining pool operators. The company mined approximately 891 Bitcoin, against approximately 563 a year earlier, helped by a full quarter of production from the Vega site, which added approximately 14.86 EH/s, and from the Drumheller site, which added approximately 3.05 EH/s. Average revenue per Bitcoin mined was approximately USD 71,087, against approximately USD 114,097, which the company named as the reason revenue declined.

Cost of revenue was USD 37.5 million against USD 28.3 million, reflecting higher energy consumption and power costs from the added fleet. General and administrative expenses were USD 2.8 million against USD 8.1 million, which had included USD 5.2 million of merger-related costs.

The Digital Asset Gain and Derivative Loss

The gain on digital assets reflected the Bitcoin price moving from approximately USD 59,847 to approximately USD 83,415 and applied to a reserve that grew to approximately 8,427 Bitcoin. Operating Income was USD 191.8 million against USD 7.2 million. Other expense was USD 64.3 million, driven by a USD 62.3 million increase in losses on Derivatives tied to the Bitcoin Redemption and put options with Bitmain.

Net income was USD 126.0 million, against USD 3.5 million. Adjusted EBITDA was USD 220.8 million against USD 27.7 million. For the nine months, the company recorded a net loss of USD 13.0 million, or a loss of USD 0.18 per share.

Capital Allocation and Balance Sheet

Total digital assets were USD 702.9 million, of which 3,090 Bitcoin with a Fair Value of USD 257.8 million was pledged to Bitmain for miner purchases. A related miner purchase Liability of USD 371.7 million was recorded. The February 2026 agreement covers approximately 11,298 S21 XP miners representing approximately 3.05 EH/s for approximately USD 49.4 million.

Cash was USD 7.4 million at September 30. During the quarter the company sold approximately 465 Bitcoin for USD 36.3 million to cover operating expenses. Under its at-the-market program of up to USD 2.1 billion, it has sold 12,121,321 Class A shares for gross proceeds of USD 385.2 million. Nine-month net cash used in Operating Activities was USD 72.4 million.

Metrics to Track

Revenue of USD 63.35 million sits alongside net income of USD 126.0 million, adjusted EBITDA of USD 220.8 million and a reserve of approximately 8,427 Bitcoin. Cash of USD 7.4 million sits next to digital assets of USD 702.9 million.

Management described its objective as Bitcoin accumulation through mining, reserve expansion and ecosystem engagement. The company operates miners at five sites under its colocation agreement with Hut 8: Alpha, Medicine Hat, Salt Creek, Vega and Drumheller. A 1-for-15 Reverse Stock Split took effect on July 2, 2026, and the shares began trading on a split-adjusted basis on July 6, 2026.