In a prime example of “good news, bad timing,” the miner American Bitcoin (ABTC), which connects to the Trump family, has just unveiled a solid third quarter – but it’s important to note that it is the first full quarter as a public company. The miner revealed strong revenues and a substantial turnaround to profitability and operational success, but it is the exposure to the realized revenue of the market that resulted in all the excitement being negated.
But despite the favorable numbers, shares of the miner tumbled more than 13% in pre-market trading. This disparity exemplifies the volatility of life as a public bitcoin miner, where an individual company’s performance is not always indicative of its standing due to bitcoin price fluctuation.
A Financial Turnaround
Looking purely at the company’s performance, the Q3 report was a resounding success. American Bitcoin posted a net income of $3.47 million for the quarter. This is a significant turnaround from the same period last year when the company recorded a loss of $576,000.
The real headline-grabber, however, was on the top line. Revenue surged fivefold to $64.2 million. The rapid growth was fueled by an intentional and aggressive growth of the company’s mining activities to take advantage of its new status as a public company.
A New Miner with a Recognizable Name
The Miami-based company is not simply a new miner. The company has significant name awareness due to the fact that it’s 20% owned by Donald Trump Jr. and Eric Trump. This connection has placed ABTC firmly in the spotlight since its inception.
The company’s public debut was the result of a complex corporate maneuver. It was spun out from the operations of Hut 8 (HUT), which retains a substantial 80% stake, and simultaneously completed a merger with Gryphon Digital Mining. This Q3 report is the first clean look the market has had at this new entity’s potential.
Powering Up: A 2.5x Expansion
The revenue surge wasn’t an accident. It was the direct result of American Bitcoin hitting the accelerator on its expansion plans. During the period, the company expanded its mining capacity roughly 2.5 times, bringing its total computational power to an impressive 25 exahash per second (EH/s).
In simple terms, this “hashrate” is the raw power the company uses to solve complex mathematical problems to mine new Bitcoin. By expanding its fleet, ABTC is able to produce more Bitcoin. Furthermore, it’s doing so efficiently, with its fleet averaging 16.3 joules per terahash—a key metric that shows its new machines are cost-effective to run.
Building the Bitcoin Treasury
Beyond just booking revenue, American Bitcoin is also playing the long game by holding onto the assets it mines. The company’s Bitcoin holdings, or “treasury,” grew substantially. During the third quarter, ABTC added 3,000 BTC to its balance sheet, bringing its total to 3,418 BTC at the quarter’s end.
According to a more recent post on X (formerly Twitter) earlier this month, that treasury has continued to grow, now standing at 4,004 BTC. This strategy of “stacking sats”—the smallest denomination of a Bitcoin—is popular among miners who are bullish on the long-term price of the asset.
Why Did the Stock Fall?
So, if the company is profitable, growing revenue, and expanding its operations, why did the stock plummet 13%? The answer lies not in the company’s SEC filing, but in the broader crypto market.
On the same day as the earnings report, the price of Bitcoin itself tumbled 7%. Bitcoin miners are what’s known as a “high-beta” play on Bitcoin. Their revenue is directly tied to the asset’s price, and their profitability is even more sensitive to it. When Bitcoin’s price falls, investors sell mining stocks—often aggressively—fearing that future profits will be squeezed. American Bitcoin was simply caught in the crypto market’s gravitational pull, a stark reminder that in this industry, the tide can pull even the strongest swimmers under.
