Bitcoin mining stocks are back in the spotlight after American Bitcoin Corp. reported a $126 million third-quarter profit, powered by a $197.3 million gain on the value of its Bitcoin holdings.
The Eric Trump-backed miner flipped a $57.2 million second-quarter loss into black ink for the three months ended September 30, according to its November 4 earnings release and SEC filing.
Alongside the profit, the company added about 425 BTC and lifted its reserve to roughly 8,427 BTC, valued at $702.9 million at quarter-end.
For Bitcoin investors, the most interesting signal is not just earnings optics. It is a listed miner still expanding its treasury while mining at a discount to spot.
The bigger question now is whether stronger bitcoin mining stocks and fatter corporate treasuries can reinforce the next leg of BTC demand.
What Drove American Bitcoin’s $126 Million Profit?
American Bitcoin’s digital-asset valuation gain totaled $197.3 million in the third quarter, reversing a $71.2 million mark-to-market loss in the prior period.
The filing ties that swing to Bitcoin rising from about $59,847 at June 30 to $83,415 at September 30, plus growth in the reserve itself.
Because the company marks Bitcoin at fair value each period, price moves flow through the income statement even when coins are not sold.
A separate $64.3 million derivatives loss, mainly linked to Bitcoin redemption and put options tied to Bitmain equipment deals, partly offset the treasury gain.
Even so, adjusted EBITDA reached $220.8 million, versus an adjusted EBITDA loss of $45 million in the second quarter.
We believe that mix underscores a simple point: when BTC advances, well-capitalized miners with growing reserves can show earnings strength that mining revenue alone would not deliver.
Did Mining Operations Still Add Real Bitcoin?
Mining revenue slipped to $63.4 million from $67 million in the second quarter as production eased from about 932 BTC to 891 BTC.
Average revenue per Bitcoin mined edged down from $71,900 to $71,100, while the average cost to mine one coin climbed to $42,100 from $36,500 on seasonal power expenses.
Gross margin compressed from 49% to 41%, and quarterly gross profit fell from $33 million to $25.8 million.
CEO Mike Ho said the company continued mining Bitcoin at a structural discount to spot despite those power-cost pressures.
Management also noted it expanded the reserve without buying Bitcoin on the open market or issuing shares through its at-the-market equity program during the quarter.
That matters for bitcoin mining stocks more broadly. Retained production that compounds a treasury can tighten liquid supply over time, even when quarterly mining margins cool.
As we covered when Bitcoin’s hashrate held above 1,000 EH/s, network security and miner commitment remain constructive signals for the asset’s long-term foundation.
How Large Is the Bitcoin Reserve Now?
American Bitcoin’s holdings rose from about 8,002 BTC at the end of June to 8,427 BTC at September 30.
Of that total, 3,090 BTC was pledged under miner purchase arrangements with Bitmain, while another 5,337 BTC sat in custody.
The reserve’s reported value jumped from $478.9 million to $702.9 million, reflecting both retained coins and the higher market price.
Satoshi-per-share rose roughly 5%, from 10,989 to 11,572 after adjusting for the July reverse stock split.
Fleet capacity stood at about 89,242 machines and 28.1 EH/s at quarter-end, a level first reached in April after additional installs at Vega and Drumheller.
Peer miners also posted strong mark-to-market quarters in the same window, with Hut 8 reporting $189.5 million in net income that included large unrealized digital-asset gains.
We would look for this treasury race among bitcoin mining stocks to keep institutional attention on BTC as a balance-sheet asset, not only a traded commodity.
What Does This Mean for Bitcoin After the Midterms?
The earnings drop as markets digest the midterm landscape and watch whether BTC can hold recent gains.
Cycle analyst Bob Loukas framed the post-election tape constructively for crypto, writing that the results were “great for crypto at least” and making clear he was not being sarcastic.
That read fits a market where corporate Bitcoin accumulation and political clarity can work together.
Fresh ETF demand has already been part of the recovery narrative, as we noted when Bitcoin ETF inflows helped push BTC higher.
A reclaim and hold above the psychologically important $80,000 zone remains the near-term test many traders watch, a theme we explored when asking whether BTC can hold above $80,000 after the midterms.
For us, American Bitcoin’s quarter is another data point that public miners are choosing to grow exposure rather than fully monetize every coin.
Could Stronger Miner Treasuries Support the Next BTC Advance?
American Bitcoin still faces the usual miner math: power costs rise seasonally, production can dip, and derivatives hedges can swing reported results.
Those details do not erase the constructive core of this release. The company mined at a discount to spot, kept growing its reserve organically, and turned a deep second-quarter loss into a $126 million profit as Bitcoin’s fair value recovered.
Over the first nine months of 2026 it raised $144.7 million gross through share sales under its ATM program, even though it issued no ATM shares in the third quarter itself.
That capital flexibility, paired with a larger BTC stack, is exactly the kind of infrastructure build-out Bitcoin bulls want to see on public markets.
We believe bitcoin mining stocks that treat BTC as a strategic reserve, not only an inventory to dump, reinforce the scarcity story that underpins long-term adoption.
Bitcoin’s fixed supply, expanding institutional rails, and corporate balance-sheet demand remain the durable pillars.
The coming weeks will reveal whether miners keep stacking through softer margins — and if Bitcoin reclaims and holds the mid-$80,000s with conviction, investors may look past seasonal power costs toward the next phase of treasury-driven accumulation.
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