CONNECT WITH US
Web3 & Blockchain

Web3 & Blockchain

American Bitcoin (ABTC) Posts $126 Million Profit as Holdings Gain $197 Million

Bitcoin Magazine logo

Published on

Add as a preferred source on Google
American Bitcoin (ABTC) Posts $126 Million Profit as Holdings Gain $197 Million

Bitcoin Magazine

American Bitcoin (ABTC) Posts $126 Million Profit as Holdings Gain $197 Million

American Bitcoin Corp. (Nasdaq: ABTC) reported about $126 million in third-quarter net income on Wednesday, a swing from a $57.2 million loss in the prior quarter that rested largely on a $197.3 million gain on the company’s bitcoin holdings rather than on mining revenue.

The Miami-based miner and treasury company, a majority-owned subsidiary of Hut 8 Corp. and co-founded with Trump family backing, mined about 891 bitcoin in the quarter at a cost of roughly $42,100 each and ended September with about 8,427 BTC.

Mining revenue was about $63.4 million, down from about $67.0 million in the second quarter. Gross profit was about $25.8 million, a 41% margin, compared with about $33.0 million and 49% a quarter earlier, as seasonal power costs rose across its sites.

Adjusted EBITDA came in at about $221 million, compared with an Adjusted EBITDA loss of about $45.0 million in the second quarter, according to the company’s release.

Eric Trump, co-founder and chief strategy officer of American Bitcoin, said the quarter delivered the net income and Adjusted EBITDA figures while growing the bitcoin reserve and bitcoin per share. Chief Executive Mike Ho said the company kept mining at a structural discount to spot and raised satoshis per share by about 5% without issuing shares through its at-the-market program or buying bitcoin on the open market.

The income statement makes the driver plain. 2 million loss on that line in the second.


Source link
Related Topics:Web3 & Blockchain

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.