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.
Excluding gains from its Bitcoin holdings, American Bitcoin would have reported an operating loss of approximately $5.5 million, according to its financial statements. The company also recorded a separate $64.3 million loss on derivatives.
“Despite seasonal power cost pressures, we continued mining Bitcoin at a structural discount to spot,” American Bitcoin CEO Mike Ho said in Wednesday’s earnings announcement.
Earnings per share stood at $1.73,…
