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American Bitcoin Corp Q3 revenue falls sequentially

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$63.36 mln

$74.35 mln (4 Analysts)

Q3 Net Income

Beat

$125.99 mln

-$4.53 mln (3 Analysts)

Q3 Income From Operations

Beat

$191.83 mln

-$4 mln (3 Analysts)

Q3 Gross Profit

$25.80 mln


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

  • Nov 4 - Riot Platforms Q3 revenue beats estimates as data center unit growth offsets weak bitcoin prices

  • Nov 4 - Hut 8 Q3 revenue falls, misses analyst expectations

  • Nov 2 - Cipher Digital Q3 revenue drops as bitcoin mining declines


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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