American Bitcoin reported a Q3 profit of $3.5 million after wider margins and lower mining costs

American Bitcoin reported a $3.5 million profit in the third quarter, turning around last year’s losses as wider mining margins and lower operating costs helped the Trump-linked crypto company bounce back.

The earnings report, released Friday night, showed that revenue for the September quarter jumped to $64.2 million, up sharply from $11.6 million in the same period last year.

The company also expanded its gross margin to 56%, up from 49% in the previous quarter. All of this comes as crypto prices cool off after a red-hot run earlier in the year, with bitcoin falling another 2.6% on Friday alone.

American Bitcoin gained momentum this year as traders bet on looser rules under President Donald Trump, who returned to the White House earlier this year. His sons are directly tied to the company: Eric Trump serves as co-founder and chief strategy officer, while Donald Trump Jr. is a stockholder.

In a post-earnings call, Eric said, “Since our Nasdaq debut, we’ve added over 3,000 bitcoin to our reserves, steadily advancing among the world’s leading public bitcoin treasuries.”

American Bitcoin now holds 4,004 bitcoin as of November 5, which is worth about $400 million based on Friday’s closing price.

Trump family’s crypto push expands as mining costs fall

American Bitcoin, a majority-owned unit of Hut 8 Corp, is the latest in a string of crypto ventures linked to the Trump family. That list also includes a meme coin and World Liberty Financial, a crypto platform partially owned by Donald.

During the earnings call event, CEO Mike Ho emphasized their cost advantage, saying, “While conventional vehicles accumulate bitcoin at spots, we mine at less than half the cost.”

The company continues to mine bitcoin using its own infrastructure, instead of buying it at market price.

Eric also commented on the ongoing trade tensions with China, which have escalated since Donald’s return to office. He brushed aside concerns about the proposed 100% import tax on Chinese goods, saying the policy hasn’t affected their business, even though American Bitcoin sources mining hardware from China.

Instead, Eric pointed to declining energy prices, saying it’s been a “major advantage” for their mining operations since his father took office.

Bitcoin drop hits crypto stocks, but American Bitcoin stays the course

After releasing the results, American Bitcoin’s stock briefly rose before dipping 1.3% in morning trading. Its movement mirrored the price of bitcoin, which tumbled as investors pulled out of risk assets.

That’s common for crypto treasury stocks, since their reserve values are tied directly to token prices. Despite that, companies like American Bitcoin have kept growing their holdings, trying to lock in gains from earlier rallies.

While the token’s price action has cooled off, interest in crypto hasn’t. The Trump administration has repeatedly stated its aim to make the U.S. a global leader in crypto, promising a lighter hand from regulators.

But the family’s growing stake in the industry has raised alarms from ethics experts and political opponents, who say Donald’s involvement in policy and crypto projects could lead to conflicts of interest.

Still, the numbers are clear: American Bitcoin has gone from red to black in one year. A $3.5 million net income, a $52.6 million jump in revenue, lower mining costs, and a growing bitcoin reserve, all while navigating market drops and political backlash, has put the Trump-backed company at the center of crypto’s political economy.

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