American Bitcoin’s $126M profit masks mining pressure as rivals turn to AI
The Eric Trump-backed miner reported $126 million in quarterly net income, largely driven by gains on its Bitcoin holdings, despite rising mining costs and shrinking margins.
The Eric Trump-backed miner reported $126 million in quarterly net income, largely driven by gains on its Bitcoin holdings, despite rising mining costs and shrinking margins.
American Bitcoin reported a quarterly net income of $126 million on Wednesday, but rising mining costs and falling profits from mining raise questions about its long-term strategy as major rivals pivot towards artificial intelligence.
The Eric Trump-backed company’s profit was driven by a $197.3 million noncash gain on its Bitcoin (BTC) holdings. Meanwhile, mining revenue fell 5.5% to $63.4 million from the previous quarter, while the cost to mine one BTC rose about 15% to $42,100.
American Bitcoin’s gross mining profit fell to $25.8 million from $33 million in the previous quarter. Its reported mining margin dropped to 41% from 49%, leaving the company with a smaller share of mining revenue after direct costs.