Company: ABTC
Filing Date: 2025-07-29
Form Type: S-4/A
Source: 0001213900-25-068715
Chunk: 498

Company: American Bitcoin Corp.
Filing Date: 2025-07-29
Form: S-4/A
Chunk 498
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 Company will receive consistent rewards based on the number of valid shares it contributes. The transaction consideration the Company receives is non -cashconsideration, in the form of bitcoin. The Company measures the bitcoin at fair value on the date earned using the average price (calculated by averaging the daily open price and the daily close price) quoted by its Principal Market at the date the Company completed the service of performing hash computations for the mining pool operator. There are no deferred revenues or other liability obligations recorded by the Company since there are no payments in advance of the performance. At the end of each 24 hour period (00:00:00 UTC and 23:59:59 UTC), there are no remaining performance obligations. By utilizing the average daily price of bitcoin on the date earned, the Company eliminates any differences that may arise due to the volatility in trading price between bitcoin and fiat currency during the period where the Company establishes and completes the contract. The consideration is all variable. There is no significant financing component in these transactions. If authoritative guidance is enacted by the Financial Accounting Standards Board (“FASB”), the Company may be required to change its policies, which could affect the Company’s financial position and results from operations. Master service agreement: The Company entered into an agreement with Sphere 3D to be an exclusive provider of management services for all blockchain and cryptocurrency -relatedoperations including but not limited to services relating to all mining equipment owned, purchased, leased, operated, or otherwise controlled by Sphere 3D and/or its subsidiaries and/or its affiliates at any location. For such services the Company will receive 22.5% of the net operating profit of all of Sphere 3D’s blockchain and cryptocurrency -relatedoperations. The net operating profits in defined as the value of the digital asset mined less energy cost and profit paid to the host facility. As Sphere 3D has the ultimate right to determine the facility location for each machine. The Company has the responsibility for the following: 1)Ensuring the machines are installed in the facility selected by Sphere. 2)Selecting and connecting the machines to a mining pool. 3)To review the mining reports and maintain a wallet for the coins earned for the mining operation. 4)To maintain a custodial wallet for the coins earned from the Sphere machines. 5)To sell and/or transfer the coins at the request of Sphere. At the time the digital assets are mined, they are transferred into the custodial wallet maintained by the Company. As of the receipt of the digital