Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 11

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 11
---
 is identified.

The transaction price is
the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer.
The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction
price, an entity must consider the effects of all the following:

●Variable consideration

●Constraining estimates of variable
consideration

●The existence of a significant
financing component in the contract

●Noncash consideration

●Consideration payable to a
customer

Variable consideration is
included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue
recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price
is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance
obligation is recognized when that performance obligation is satisfied, at a point in time, or over time as appropriate.

10

Cryptocurrency mining:

The Company entered into contracts with digital
asset mining pool operators to provide the service of performing hash computations for the mining pool operator. The contracts are continuously
renewable and are terminable without penalty at any time by either party. The Company’s enforceable right to compensation only begins
when the Company provides computing power to the mining pool operator. In exchange for providing computing power, the Company is entitled
to a fractional share of Bitcoin. Hashrate is the measure of the computational power per second used when mining. Since the contract is
continuously renewing, second by second, the mining contract is considered to have a duration of less than 24 hours for accounting purposes.

Providing computing power
in Bitcoin transaction verification services is an output of the Company’s ordinary activities. The provision of computing power
is the only performance obligation in the Company’s contracts with third party pool operators. The transaction consideration the
Company receives, if any, is noncash consideration, which is all variable. There is no significant financing component in these transactions.

The Company earns Bitcoin
during a 24-hour cycle between 00:00:00 UTC and 23:59:59 UTC (“24-hour Period”) unless terminated in accordance with the terms
set forth by the terms of service. The Company performs hash computations for one mining pool operator, Foundry USA. Foundry USA operates
its pool on the Full Pay Per Share (FPPS) payout method. FPPS is a