Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 46

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 46
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 copper, nickel, etc.). Much like the gold industry, the purpose of
this calculation is to offer the reader a bitcoin-equivalent datapoint for Gryphon’s primary revenue stream. This enables readers
to easily compare Gryphon’s operations with other bitcoin mining companies. By dividing the total cost of revenues by the number
of bitcoin mined, one arrives at the breakeven point. Therefore, if Gryphon sells a bitcoin at the same price, it would have achieved
a breakeven.

27

The
breakeven cost of mining bitcoin is influenced primarily by two factors. First, the cost of electricity sourced from Gryphon’s hosting
providers, which encompasses a combination of pass-through market electricity prices and profit-sharing arrangements. Second, it is affected
by the global hashrate of the Bitcoin network. During the six months ended June 30, 2025, the cost of electricity has fluctuated due to
increased demand year over year from $0.0736 per kilowatt hour during the six months ended June 30, 2024 to $0.0926 per kilowatt hour
during the six months ended June 30, 2025, reaching a high of $0.1223 per kilowatt hour during January 2025. In addition, the global hashrate
of the Bitcoin network has shown a consistent upward trend, with sequential increases of 4.4%, 16.9%, 9.2% and 9.1% over the last four
quarters ending June 30, 2025. This increase in the global hashrate has led to fewer bitcoins being mined for the same amount of energy
consumption. The combined effect of these changes in the two key cost drivers has resulted in an increase in the overall breakeven level
as of June 30, 2025 compared to June 30, 2024.

Recent Developments

ABTC Merger Agreement

See “Explanatory Note”
and “Note 1 – Organization and Summary of Significant Accounting Policies “ABTC Merger” to the unaudited condensed
consolidated financial statements for the six months ended June 30, 2025 included in this Report.

Blockfusion Agreement

On December 1, 2024, the Company
entered into an agreement with Blockfusion USA, Inc. (“Blockfusion”) to provide hosting services for 3,780 of the Company’s
bitcoin miners not to exceed 12MW of allocated