Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 114

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 114
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    $1,857,000  
    $(4,882,000) 
     (262.9)%

32

Unrealized gain (loss)
on marketable securities

For
the three months ended June 30, 2025 unrealized gain on marketable securities was $23,000, as compared to an unrealized loss of $56,000
for the three months ended June 30, 2024. The gain for the three months ended June 30, 2025 related to an increase in the fair market
value of the underlying securities held.

Change in fair value
of BTC Note

During
the year ended December 31, 2024, the Company had a note payable denominated in Bitcoin, which was accounted for under the fair value
method of accounting. For the three months ended June 30, 2024, the Company recognized a $2,743,000 increase in the fair value of notes
payable. The note payable was settled in October 2024; therefore, the Company did not incur a fair value change for the three months ended
June 30, 2025.

Merger and acquisition costs

As
of the date of the Captus Assignment Agreement, the Company had approximately $1,953,000 of cash deposits and related professional
fees, which were expensed as of the assignment date.

 Loss
on disposal of asset

Loss
on disposal of assets was $83,000 for the three months ended June 30, 2025, as compared to $146,000 for the three months ended June 30,
2024. The loss related to the April 2025 disposal of 66 miners with a cost basis of approximately $132,000 and accumulated depreciation
of approximately $49,000.

ABTC Merger costs

On
May 9, 2025, the Company entered into an Agreement and Plan of Merger with ABTC. For the six months ended June 30, 2025, the Company incurred
approximately $989,000 of costs related to the ABTC merger, consisting of $543,000 for legal fees, $103,000 for accounting services, $200,000
for fairness opinion, $128,000 for the modification of the Anchorage warrant, and $15,000 of other miscellaneous expenses.

Interest expense

Interest
expense of $290,000 for the three months ended June 30, 2024, was related to