American Bitcoin Corp Q3 revenue falls sequentially

Overview

• US Bitcoin miner's Q3 revenue fell and missed analyst expectations

• Net income and income from operations for Q3 beat analyst estimates, swinging to profit

• Company grew Bitcoin reserve and Satoshis Per Share by about 5% in Q3

Outlook

• Company did not provide specific financial guidance for future quarters or full year in its press release

Result Drivers

• SEASONAL POWER COSTS - Co said higher seasonal power costs increased cost to mine and pressured gross margins in Q3

• BITCOIN RESERVE GROWTH - Co increased Bitcoin holdings by ~5% in Q3, growing strategic reserve without purchasing Bitcoin or issuing shares

• BITCOIN SOLD TO COVER COSTS - Co sold a portion of Bitcoin production to cover operating costs while continuing to build reserve

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"

• Wall Street's median 12-month price target for American Bitcoin Corp. is $15.50, about 134.5% above its November 3 closing price of $6.61

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)