American Bitcoin’s $126 Million Profit Looks Weaker Once Coin Price Gains Are Removed

American Bitcoin, the miner backed by Eric Trump, posted $126 million in quarterly net income, yet the figure owes almost everything to a $197.3 million noncash gain on the bitcoin it holds. Without that boost, the company would have reported an operating loss of about $5.5 million, and it also booked a separate $64.3 million loss on derivatives.

Mining Costs Rise While Revenue Misses the Mark

Revenue of $63.4 million fell about 5.5% from the previous quarter and landed well below the $74.35 million analysts expected. Cost per mined coin climbed roughly 15% to $42,100, mostly because of higher electricity prices, and output slipped to 891 BTC from 932 BTC. Mining margin narrowed to 41% from 49%. Earnings per share of $1.73 still beat the $0.26 forecast, but shares closed down about 15% at $5.31.

What an Industry Expert Says

David Gamble of Enigma Holdings argues that mining below market price does not automatically create shareholder value. He accepts the strategy of building reserves, which grew to 8,427 BTC from 3,418 a year earlier, but questions its long term durability given rising difficulty and equipment costs.

Rivals Chase AI Revenue Instead

Riot, MARA and Core Scientific are all moving toward AI data centers. Gamble says energy infrastructure is becoming the real edge, since miners and AI firms compete for the same power, though not every site can switch over easily.