Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 72

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 72
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 the Mergers may materially adversely affect the timing and benefits that
are expected to be achieved from the Mergers.

Gryphon stockholders will experience significant
ownership and voting power dilution in connection with the Mergers and may not realize a benefit from the Mergers commensurate with that
dilution.

Pursuant to the terms of
the ABTC Merger Agreement and upon the Closing, the Gryphon stockholders as of immediately prior to the First Effective Time are
expected to own 2.0% of the Combined Company Common Stock and the ABTC stockholders as of immediately prior to the First Effective
Time are expected to own 98.0% of the Combined Company Common Stock, each on a fully diluted basis. ABTC stockholders who hold ABTC
Class B Common Stock, including ABH, which is a wholly owned subsidiary of Hut 8, and certain other stockholders of ABTC, will
receive Class B Common Stock, which will entitle the holder thereof to 10,000 votes per share. The Class A Common Stock that will be
held by other stockholders of the Combined Company, including stockholders of Gryphon, will entitle the holder thereof to one vote
per share. While the actual Exchange Ratio will be determined at the Closing, it is currently expected that ABTC stockholders as of
immediately prior to the First Effective Time will collectively represent approximately 99.99% and holders of equity interests of
Gryphon as of immediately prior to the First Effective Time will collectively represent less than 0.01% of the total combined voting
power of Combined Company capital stock, respectively, at the Closing. In addition, it is currently expected that at the Closing, on
the same basis, Hut 8 will own approximately 64.37% of the then-outstanding Combined Company Common Stock, on a fully diluted basis,
which is expected to represent approximately 80.00% of the total combined voting power of the Combined Company capital stock.

Accordingly, the issuance of Combined Company
Common Stock to ABTC stockholders in the Mergers will significantly reduce the ownership stake and relative voting power of each share
of Gryphon Common Stock held by current Gryphon stockholders. Consequently, following the Mergers, the ability of current Gryphon stockholders
to influence Combined Company management will be substantially reduced.

If the Combined Company is unable to realize the
strategic and financial benefits currently anticipated from the Mergers