Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 33

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 33
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,000 per MW, for an aggregate of $156,000 (“Facility Fee”) for standard
levels of maintenance of the Company’s Mining Equipment, including fault diagnosis and software upgrades, and racking and unracking
of faulty machines. The Company’s monthly power usage will charge to the Company without a Blockfusion markup charge. At the signing
of the Blockfusion MSA, the Company was required to pay (i) an initial monthly Facility Fee of $156,000 to be applied to the December
2024 Facility fee, (ii) a deposit in the aggregate of $600,000, as follows $200,000 on December 6, 2024, $200,000 on January 1, 2025 and
$200,000 on February 1, 2025 (“Cash Deposit”) and (iii) the Company is required, prior to January 27. 2025, and thereafter
at all times during the Term, maintain an irrevocable letter of credit, or prior to January 31, 2025 maintain a cash deposit and thereafter
at all times during the Term, in the amount of $1,200,000 (“LOC Deposit”). As of the release date of these unaudited condensed
consolidated Financial Statements, the Cash Deposit has been paid and is not outstanding while the LOC Deposit remains outstanding.

The Company determined that the agreement with
Blockfusion does not meet the definition of a lease in accordance with ASC 842, Leases.

On April 15, 2025, due to high industry hash
rates and high energy costs, Gryphon Digital Mining, Inc. (the “Company”) and Blockfusion USA, Inc. (“Blockfusion”)
agreed to suspend mining operations and curtail service, respectively.

Mawson Agreement

On January 3, 2025, Gryphon
entered into a Master Co-Location Agreement (the “Mawson Agreement”) with Mawson Hosting LLC (“Mawson”) with a
right to host up to 5,880 miners in Mawson’s facility in Midland, Pennsylvania. Pursuant to the Mawson Agreement, the Company is
entitled to 20 MW of power at a cost of approximately $23.50 per MW/hour paid monthly with a minimum fee of approximately $165,521 per
month, as well as certain other fees set forth in the agreement. The Mawson Agreement has an initial term of one year and may be