Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 227

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 227
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Litigation relating to the Mergers could
require Gryphon to incur significant costs and suffer management distraction and could delay or enjoin the Mergers.

Gryphon could be subject to demands or litigation
related to the Mergers, whether or not the Mergers are consummated. Such actions may create uncertainty relating to the Mergers or delay
or enjoin the Mergers and responding to such demands is often expensive and could divert management time and resources. In addition, such
demands or litigation could lead to a dissolution or bankruptcy of Gryphon if the costs associated with such demands or litigation are
significant enough.

Gryphon and ABTC are expected to incur substantial
expenses related to the Mergers.

Gryphon and ABTC have incurred and expect to continue
to incur, substantial fees and expenses in connection with the Mergers, including legal, accounting, financial advisory and other transaction
fees and costs associated with the Mergers. Additionally, as the controlling stockholder of ABTC, Hut 8 has incurred and expects to continue
to incur fees and expenses in connection with the Mergers, and such costs are expected to be borne by ABTC.

As of June 25, 2025, ABTC has incurred approximately
$4.3 million of fees and expenses related to the Mergers, primarily consisting of legal, audit and accounting fees, and anticipates incurring
approximately $0.9 million of additional fees and expenses prior to the Closing. As of June 25, 2025, Gryphon has incurred approximately
$0.9 million of fees and expenses related to the Mergers, primarily consisting of legal, audit and accounting fees, and anticipates incurring
approximately $1.1 million of additional fees and expenses prior to the Closing. Actual transaction costs may substantially exceed Gryphon’s
and ABTC’s respective estimates and may have an adverse effect on the Combined Company’s financial condition and operating
results.

In addition, the Combined Company may also incur
significant integration-related fees and costs related to formulating and implementing integration plans, including facilities and systems
consolidation costs and employment-related costs. Gryphon and ABTC continue to assess the magnitude of these costs and additional unanticipated
costs may be incurred in the Mergers and the integration of the two companies’ businesses.

Gryphon or ABTC may waive one or more of
the Closing conditions without re-soliciting stockholder approval