Company: ABTC
Filing Date: 2025-07-29
Form Type: S-4/A
Source: 0001213900-25-068715
Chunk: 590

Company: American Bitcoin Corp.
Filing Date: 2025-07-29
Form: S-4/A
Chunk 590
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     | $          | — |

Bitcoin redemption option In December 2024, in connection with the BITMAIN Purchase Agreement, Parent pledged 968 Bitcoin to BITMAIN in connection with a purchase of approximately 30,000 BITMAIN Antminer S21+ ASIC miners. Parent has the option to redeem the pledged Bitcoin at a mutually agreed upon fixed price starting from and for up to three months after the shipment date of the purchased miners. The amount of Bitcoin that can be redeemed is pro -rataof the percentage of miners shipped. ABTC accounted for this Bitcoin redemption option as a Level 3 derivative asset as noted in Note 2. A significant unobservable input included in the fair value estimate of the Bitcoin redemption option is the estimated shipment date of the purchased miners, which management estimated to begin at the end of January 2025 as of December 31, 2024. As of December 31, 2024 and December 18, 2024, Parent estimated the fair value of the Bitcoin redemption option using the Black -Scholespricing model with the following inputs and inputs noted in the paragraph above:

|                         |     | December 31, 
         2024 |   |     | December 18, 
         2024 |   |
|:------------------------|:----|-------------:|:--|:----|-------------:|:--|
| Implied volatility      |     |        61.54 | % |     |        61.32 | % |
| Risk-free interest rate |     |         4.27 | % |     |         4.32 | % |

The following table provides a summary of activity and change in fair value of the Bitcoin redemption option (Level 3 derivative asset):

| (in USD thousands)           |     | Year Ended   
 December 31, 
 2024         |        |     | Year Ended   
 December 31, 
 2023         |   |
|:-----------------------------|:----|:-------------|-------:|:----|:-------------|:--|
| Balance, beginning of period |     | $            |      — |     | $            | — |
| Additions                    |     |              | 15,096 |     |              | — |
| Change in fair value         |     |              |  2,980 |     |              | — |
| Balance, end of period       |     | $            | 18,076 |     | $            | —