Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 63

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 63
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orage loaned Gryphon Opco the principal amount of 933.333333
bitcoin. Gryphon Opco’s obligations under the Anchorage Loan Agreement were secured by certain equipment and software rights of
Gryphon Opco and were guaranteed by Gryphon.

On
October 25, 2024, Gryphon, its direct and indirect subsidiaries, as applicable, and Anchorage entered into the Debt Repayment and Exchange
Agreement; Loan, Guaranty and Security Agreement, Form of Pre-Funded Warrant and Form of $1.50 Warrant to restructure the Anchorage Loan
and terminate the existing the Anchorage Loan Agreement. Pursuant to the New Anchorage Agreements, (i) approximately $9.1 million of the
Anchorage Loan was converted into shares of Common Stock, at an ascribed value of $1.10 per share, resulting in the issuance of 8,287,984
shares of Common Stock to Anchorage in a private placement pursuant to Section 4(a)(2) of the Securities Act, (ii) approximately $3.9
million of the Anchorage Loan was converted into warrants to purchase 3,530,198 shares of Common Stock, which warrants are exercisable
immediately, have an unlimited term and an exercise price of $0.01 per share, in a private placement pursuant to Section 4(a)(2) of the
Securities Act and (iii) the remaining $5 million of the Anchorage Loan was exchanged for a new $5 million loan pursuant to the New Loan
Agreement.

Pursuant
to the New Loan Agreement:

    ●
    the outstanding principal and interest are denominated in dollars;

    ●
    the interest rate is 4.25% payable monthly;

    ●
    Anchorage has been given a first priority lien on all of Gryphon and its subsidiaries’ assets;

    ●
    covenants related to mining machine locations and covenant ratios in the Anchorage Loan Agreement have been removed; and

    ●
    Anchorage may convert half of the outstanding principal at a price of $1.10 per share of Common Stock and the remaining half at a price of $1.50 per share of Common Stock.

The
New Loan Agreement contains customary representations, warranties and agreements by Gryphon, customary conditions to closing, indemnification
obligations of the Company and the purchasers, including for liabilities arising under the Securities Act, other obligations of the parties
and termination