Bitcoin News Today: Profitable Yet Undervalued: American Bitcoin Navigates Skepticism and Volatility

American Bitcoin Corp. (NASDAQ: ABTC), the Trump-backed venture co-founded by Donald Trump Jr. and Eric Trump, has reported its first quarterly profit as a public company, marking a significant milestone in its evolution as a hybrid Bitcoin mining and treasury platform. The firm's third-quarter 2025 results revealed a 453% year-over-year revenue surge to $64.2 million and a net income of $3.5 million, reversing a $0.6 million loss in the prior-year period. The company also expanded its Bitcoin reserves to over 3,418 coins, with some estimates suggesting the total had surpassed 4,000 BTC by mid-November.

The performance was driven by a dual strategy of Bitcoin mining and strategic treasury management, which allowed American Bitcoin to acquire the cryptocurrency at roughly half the cost of open-market purchases. The firm's mining operations scaled to 25 exahash per second (EH/s) of capacity, positioning it as one of the largest U.S.-based mining entities. This expansion was bolstered by a stock-for-stock merger with Gryphon Digital Mining and asset contributions from Canadian miner Hut 8 Corp., which now holds an 80% controlling stake in the firm.

Despite robust financials, the stock faced volatility, dropping as much as 13% in pre-market trading following the earnings release. The decline mirrored broader crypto market turbulence, as Bitcoin itself fell below $95,000 during the period. Analysts attributed the drop to investor caution around macroeconomic risks and the company's exposure to Bitcoin price swings. However, management emphasized its asset-light model and operational efficiency, with gross margins expanding to 56% in Q3 2025, up from 49% in the prior quarter.

American Bitcoin's leadership has prioritized increasing its "Satoshis Per Share" (SPS) metric, which measures Bitcoin holdings per equity share. As of November 5, the company reported 432 satoshis per share, reflecting a 3.35% increase in 12 days. Co-founder Eric Trump highlighted the firm's ability to "maximize Bitcoin per share through rapid, efficient accumulation," leveraging its hybrid model to scale reserves while minimizing capital expenditures.

The company also outlined plans to explore debt and fixed-income financing strategies, as well as potential M&A opportunities in the digital asset space. Hut 8's corporate overview noted that American Bitcoin controls approximately 25.0 EH/s of the combined entity's 26.8 EH/s hashrate, underscoring its pivotal role in the merged firm's operations.

While the Q3 results demonstrated operational success, market skepticism persists. The stock trades at a price-to-earnings ratio of 27.5x, below the software industry average of 32.5x, reflecting cautious investor sentiment. Critics have also scrutinized the firm's political ties, with some analysts comparing its stock dynamics to meme-like volatility amid Trump-era crypto policy debates.

Looking ahead, American Bitcoin's trajectory will hinge on Bitcoin's price action, regulatory developments, and its ability to maintain efficient reserve growth. The firm's hybrid model and strategic partnerships with Hut 8 and Gryphon position it as a key player in the evolving Bitcoin infrastructure landscape, but execution risks-particularly around M&A and regulatory uncertainty-remain significant.