Company: ABTC
Filing Date: 2025-07-29
Form Type: S-4/A
Source: 0001213900-25-068715
Chunk: 584

Company: American Bitcoin Corp.
Filing Date: 2025-07-29
Form: S-4/A
Chunk 584
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 and accrued expensesunder current liabilities on ABTC’s Combined Balance Sheets, reflecting its obligation to either redeem the pledged Bitcoin for cash or put it towards the purchase of ASIC miners by not redeeming the pledged Bitcoin at the end of the redemption period. In accordance with ASC Topic 610 -20 Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets, ABTC assessed the transfer of nonfinancial assets, Bitcoin, under ASC 606. Specifically, ABTC noted that the Bitcoin pledged to BITMAIN under the BITMAIN Purchase Agreement constitutes a repurchase agreement under ASC 606. As a result, the Bitcoin was not derecognized upon transfer as Parent retains a repurchase option. Due to the redemption right and ABTC’s continued economic exposure to the Bitcoin, the pledged Bitcoin is separately classified as Digital assets — pledged for miner purchaseon the Combined Balance Sheets, which represents restricted Bitcoin. ABTC recorded a Bitcoin redemption right derivative asset with an initial fair value of $15.1 million. See Note 11. Derivativesfor further information on this derivative asset. Note 6. Property and equipment, net The components of property and equipment, net were as follows:

|                                  | (in USD thousands) | December 31, |    2024 |   |     |   |    2023 |   |
|:---------------------------------|:-------------------|:-------------|--------:|:--|:----|:--|--------:|:--|
| Miners and mining equipment      |                    | $            |  74,230 |   |     | $ |  84,617 |   |
| Less: Accumulated depreciation   |                    |              | (31,141 | ) |     |   | (21,550 | ) |
| Miners and mining equipment, net |                    | $            |  43,089 |   |     | $ |  63,067 |   |

Depreciation expense related to property and equipment was $22.7 million, $14.4 million, and $16.8 million, for the years ended December 31, 2024, 2023, and 2022, respectively. Impairment of long-lived assets On March 6, 2024, Parent announced the closure of its Drumheller site in Alberta, Canada. Parent further assessed the profitability of the site which indicated that an impairment triggering event had occurred. Accordingly, with the closure of the Drumheller