According to Woofun AI, American Bitcoin (ABTC.US), a Bitcoin mining company co-founded by Eric Trump, showed a rare divergence between financial data and market performance after announcing financial results on November 5, 2026: despite achieving significant quarterly profits, its stock price experienced a sharp drop.
At the financial level, American Bitcoin (ABTC.US) has shown remarkable reversal ability. The company recorded net revenue of approximately $126 million in the third quarter, a figure in stark contrast to a loss of $57.2 million in the second quarter, marking the company's shift from huge deficits to substantial profits.
At the same time, adjusted profit before interest, tax, depreciation and amortization (EBITDA) also improved significantly, reaching US$221 million, compared to a loss of US$45 million in the previous quarter. This sharp fluctuation at the accounting level is mainly due to book value revaluation and non-cash item adjustments brought about by Bitcoin price fluctuations, rather than simply improving operational efficiency.
However, this profit model, which is based on financial engineering or asset revaluation, often conceals the fundamental pressure on the underlying business, making investors need to penetrate the image when interpreting financial reports and examine whether their core hematopoietic capacity is actually enhanced.
An in-depth analysis of operational fundamentals reveals that the company's actual mining business is facing serious challenges. Third-quarter mining revenue declined from approximately $67 million to $63.4 million, while gross profit declined from $33 million to $25.8 million. More worryingly, gross margins have narrowed significantly from 49% to 41% due to rising seasonal electricity costs. Eric Trump, co-founder and chief strategy officer of American Bitcoin (ABTC.US), tried to tone down these negative signals in an announcement on November 4, stressing the company's commitment to building American Bitcoin (ABTC.US) because he believes Bitcoin and domestic energy will play a key role in the future economy. CEO Mike Hawke reiterated that the company's growing cryptocurrency reserves and corresponding Bitcoin holdings per share are at the core of its fund-raising strategy.
However, the optimism of executives contrasts strongly with the reality of declining revenue and narrowing gross profit, showing the tension between management's narrative strategy and actual operating difficulties in dealing with cost pressure.
According to data compiled by Woofun AI, in terms of changes in Bitcoin reserves, American Bitcoin (ABTC.US) holdings increased from about 8,002 on June 30 to 8,427 on September 30, an increase of about 425, or 5.3%. The company ranked 13th among publicly listed corporate Bitcoin holders, ahead of GD Culture Group, a publicly traded company that uses a digital asset reserve strategy, and Galaxy Digital Holdings, a digital asset financial services company.
Notably, its corresponding Satoshi number per share also increased by around 5%, from 10,989 to 11,572. Mike Ho specifically pointed out that the company achieved this growth without issuing new shares through market placement or directly purchasing bitcoins during the quarter. He believes this is critical in the current market environment, and strict discipline can create lasting value for the company.
However, financial reports revealed that around 3,090 bitcoins were used to purchase mining equipment under an agreement with mining hardware manufacturer Bitmain. This means that while total reserves have increased, large amounts of BTC are locked in fixed assets rather than as free-flowing financial assets, which limits the company's flexibility in the face of market fluctuations and the potential for immediate shareholder returns.
Deterioration in mining costs and efficiency is a key factor in suppressing market sentiment. The cost of each bitcoin the company mines rose from around $36,500 in the second quarter to $42,100 in the third quarter, up 15.3% in the quarter.
Meanwhile, Bitcoin production dropped 4.4% from around 932 to 891. Although the average revenue of each bitcoin in the third quarter was about 71,100 US dollars, and the production cost was 42,100 US dollars. The profit gap per bitcoin was about 29,000 US dollars before accounting and financial expenses were taken into account, showing that there is still room for profit for single mining, but the profit margin is rapidly shrinking. By the end of the quarter, the total number of mining equipment owned by American Bitcoin (ABTC.US) was around 89,242, with a total computing power of 28.1 ahsh/s. As electricity costs rise and competition intensifies, the fixed cost pressure to maintain such large-scale hardware operations is becoming more and more prominent. If the price of Bitcoin falls further or electricity costs continue to rise, the current profit model will face severe tests.
The macro background and stock price reaction have further exacerbated market uncertainty. American Bitcoin (ABTC.US) is mainly held by Hut 8 Corp. (HUT.US), a publicly listed energy infrastructure and bitcoin mining company. Following the Democratic Party's victory in the November 3 midterm elections, the Trump family's crypto-related projects faced stricter political scrutiny, and the company's announcement of financial results at this time certainly amplified investors' concerns.
Compared to other publicly listed Bitcoin reserve companies, the top ranking includes Trump Media & Technology Group (DJT.US) holds 12,062, Tesla (TSLA.US) holds 11,509, Block (XYZ.US) holds 9,237, and American Bitcoin (ABTC.US) ranks 13th with 8,427, followed by GD 7,500 by Culture Group (GDC.US) and 6,894 by Galaxy Digital Holdings (GLXY.US).
As of Thursday, ABTC's stock price has dropped sharply, with a cumulative decline of nearly 17%. The current price is $5.18. This trend is similar to other struggling publicly listed mining companies. ABTC's stock price has dropped by more than 40% in the past month.
Meanwhile, former Bitcoin mining company Keel Infrastructure sold all of its Bitcoin reserves and received $192 million in cash in the third quarter. This industry exit case further warns of the fragility of the mining industry.
In the context of the accelerated reshuffle of the industry, the case of American Bitcoin (ABTC.US) provides investors with a profound warning. Although financial reports show profit, the effectiveness of its long-term strategy has been questioned due to rising operating costs, declining production, and the complexity of the political environment. Journalist Jamie Redman from Massachusetts pointed out that investors need to be wary of differences between financial data and actual mining costs, and pay attention to the company's real viability under rising energy costs and increased competition. In the future, as industry consolidation intensifies, it may be difficult for companies that rely on book profits alone and lack operational efficiency improvements to maintain their market position in a volatile market.