American Bitcoin — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for Q3 2026 was approximately $63.4 million, down from $67.0 million in Q2 2026.
• Net income for Q3 2026 was approximately $126 million, a significant improvement from a net loss of $57.2 million in Q2 2026.
• Adjusted EBITDA for Q3 2026 was approximately $221 million, compared to an Adjusted EBITDA loss of $45.0 million in Q2 2026.
• Gross profit was approximately $25.8 million with a gross margin of ~41%, compared to $33.0 million and ~49% in Q2 2026.
• Cost to mine per Bitcoin was approximately $42,100 in Q3 2026, up from $36,500 in Q2 2026, attributed to higher seasonal power costs.
• Revenue per Bitcoin mined was approximately $71,100 in Q3 2026, compared to $71,900 in Q2 2026.
• Depreciation and amortization expenses were $28.579 million in Q3 2026 versus $28.237 million in Q2 2026.
• General and administrative expenses were $2.758 million in Q3 2026, down from $7.672 million in Q2 2026.
• The company recorded a gain on digital assets of $197.340 million in Q3 2026, contrasting with a loss of $71.178 million in Q2 2026.
• Stock-based compensation expense was $384,000 in Q3 2026, down from $812,000 in Q2 2026.

Guidance and Future Outlook:

• Management expressed confidence in the company's ability to create lasting value for shareholders across market cycles through disciplined Bitcoin accumulation.
• The company aims to continue growing its strategic Bitcoin reserve and increasing Satoshis per share without issuing shares through its ATM program or purchasing Bitcoin during the quarter.
• Management believes the company is well-positioned at the intersection of Bitcoin and American energy infrastructure as demand for energy and critical infrastructure accelerates across America.
• The company intends to maintain operational flexibility and allocate capital to support long-term Bitcoin-per-share growth.

Business Segments and Product Lines:

• Mining revenue was generated through the company's self-mining operations, which produced approximately 891 Bitcoin in Q3 2026 compared to 932 Bitcoin in Q2 2026.
• Q3 2026 production represented approximately 21% of the Company's total Bitcoin mined since its March 31, 2025 launch.
• The company sold a portion of Bitcoin production to cover operating costs while continuing to build its strategic reserve.
• Total owned fleet consisted of approximately 89,242 Bitcoin miners with approximately 28.1 EH/s of capacity as of quarter-end.
• Approximately 3,090 Bitcoin were pledged for miner purchases under agreements with BITMAIN.
• Satoshis Per Share (SPS) increased by approximately 5%, rising from ~10,989 as of June 30, 2026, to ~11,572 as of September 30, 2026.
• Bitcoin holdings grew from approximately 8,002 Bitcoin as of June 30, 2026, to approximately 8,427 Bitcoin as of September 30, 2026, an increase of ~425 Bitcoin or ~5%.

Market and Competitive Landscape:

• The company operates in a challenging digital asset market, noting that its results reflect discipline and long-term conviction.
• Management highlighted the increasing role of Bitcoin and American energy in the future of the economy.
• The company mines Bitcoin at a structural discount to spot price despite seasonal power cost pressures.

Risks and Challenges:

• Higher seasonal power costs across mining sites contributed to quarter-over-quarter margin pressure and increased the cost to mine.
• The press release lists numerous forward-looking risks including Bitcoin price volatility, concentration of holdings, failure to grow hashrate, competition, reliance on third-party mining pool service providers, hedging transactions, Bitcoin halving events, and dependence on Hut 8.
• Other risks include liquidity constraints, failure to raise additional capital, cybersecurity threats, operational risks, and regulatory uncertainties.

Management Commentary and Tone:

• CEO Mike Ho stated that the results demonstrate a commitment to building a disciplined, Bitcoin-denominated operating business and highlighted the distinction of growing the reserve without issuing shares or purchasing Bitcoin.
• Co-Founder and Chief Strategy Officer Eric Trump emphasized the conviction that Bitcoin and American energy will play an increasingly important role in the economy and described the results as significant given the challenging market.
• Management tone was confident and focused on long-term value creation, efficiency, and flexibility.

Other Key Points:

• The company is a majority-owned subsidiary of Hut 8 Corp.
• A 1-for-15 reverse stock split was effected on July 2, 2026, which is reflected in the number of common shares issued and outstanding.
• The company uses its website and social media accounts (X, Instagram, LinkedIn) as primary channels for disclosing key information to investors.
• The company reported no non-recurring transactions for the three months ended September 30, 2026, and June 30, 2026.
• A conference call regarding these results was held on November 4, 2026, at 4:30 p.m. ET.