American Bitcoin’s $126M Profit Masks Mining Pressure as Rivals Pivot to AI

American Bitcoin, the Eric Trump-backed Bitcoin miner, reported quarterly net income of $126 million, but the headline profit was largely driven by a $197.3 million noncash gain on its Bitcoin holdings. Excluding those holdings, the company would have posted an operating loss of approximately $5.5 million. A separate $64.3 million derivatives loss further highlighted the difference between American Bitcoin’s reported earnings and its underlying mining performance.

Mining revenue fell 5.5% to $63.4 million, missing analysts’ estimate of $74.35 million, while the cost to mine one Bitcoin rose roughly 15% to $42,100. American Bitcoin mined 891 BTC during the quarter, down from 932 in the previous three months, as higher electricity prices pressured profitability. Gross mining profit declined to $25.8 million from $33 million, and the mining margin fell to 41% from 49%.

“Despite seasonal power cost pressures, we continued mining Bitcoin at a structural discount to spot,” American Bitcoin CEO Mike Ho said. Enigma Holdings founder David Gamble cautioned that mining Bitcoin below its market price does not automatically create shareholder value, pointing to the company’s shrinking production and narrowing margins. The pressure comes as competitors including Riot Platforms, MARA Holdings and Core Scientific invest in AI infrastructure to diversify beyond Bitcoin mining.

American Bitcoin reported earnings per share of $1.73, well above the $0.26 consensus estimate, but its shares closed down approximately 15% at $5.31. Bitcoin was trading near $76,119, down about 5% over 24 hours. The results underscore a broader shift in the digital-asset mining sector, where AI hosting is emerging as a potential growth engine while rising power costs threaten traditional Bitcoin mining economics.