Company: ABTC
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-069998
Chunk: 581

Company: American Bitcoin Corp.
Filing Date: 2025-07-31
Form: 424B3
Chunk 581
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 Derecognition of Nonfinancial Assets, ABTC assessed the transfer of nonfinancial assets, Bitcoin, under ASC 606. Specifically, ABTC noted that the Bitcoin pledged to BITMAIN under the BITMAIN Purchase Agreement constitutes a repurchase agreement under ASC 606. As a result, the Bitcoin was not derecognized upon transfer as Parent retains a repurchase option. Due to the redemption right and ABTC’s continued economic exposure to the Bitcoin, the pledged Bitcoin is separately classified as Digital assets — pledged for miner purchaseon the Combined Balance Sheets, which represents restricted Bitcoin. ABTC recorded a Bitcoin redemption right derivative asset with an initial fair value of $15.1 million. See Note 11. Derivativesfor further information on this derivative asset. Note 6. Property and equipment, net The components of property and equipment, net were as follows:

|                                  | (in USD thousands) | December 31, |    2024 |   |     |   |    2023 |   |
|:---------------------------------|:-------------------|:-------------|--------:|:--|:----|:--|--------:|:--|
| Miners and mining equipment      |                    | $            |  74,230 |   |     | $ |  84,617 |   |
| Less: Accumulated depreciation   |                    |              | (31,141 | ) |     |   | (21,550 | ) |
| Miners and mining equipment, net |                    | $            |  43,089 |   |     | $ |  63,067 |   |

Depreciation expense related to property and equipment was $22.7 million, $14.4 million, and $16.8 million, for the years ended December 31, 2024, 2023, and 2022, respectively. Impairment of long-lived assets On March 6, 2024, Parent announced the closure of its Drumheller site in Alberta, Canada. Parent further assessed the profitability of the site which indicated that an impairment triggering event had occurred. Accordingly, with the closure of the Drumheller site, the long -livedassets of the site were fully written down. This resulted in a write down of $3.1 million, which is reflected in the Loss from discontinued operationsin ABTC’s Combined Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2024. There was no impairment