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

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 25
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SISP”) in
respect of the sale of the assets and properties of Erikson. As part of the SISP, the Company and Erikson entered into the Court-approved
Purchase Agreement pursuant to which the Company agreed to purchase substantially all of Erikson’s assets for a purchase price of
CAD $2,000,000, subject to certain adjustments as provided for in the Purchase Agreement. Pursuant to the Erikson Purchase Agreement,
the Company will acquire all of Erikson’s natural gas and oil wells, facilities and pipelines, which are currently shut in. The
assets are located in northeast British Columbia and span the Fort St. John, Stoddart, Roseland, Fireweed, Buick Creek, Laprise and Wildboy
areas. The representations and warranties provided by the parties are standard for a transaction of this nature.

The transaction remains subject
to certain conditions, which conditions include obtaining the mineral rights formerly held by Erikson, obtaining approval for the well,
facility and pipeline license transfers from the British Columbia Energy Regulator, completion of Gryphon’s due diligence, and the
granting of a sale approval and vesting order by the Court, all of which must be satisfied or waived by the Company by January 31, 2025,
which date may be extended at the Company’s option to March 8, 2025 (in either case, the “Outside Date”). No assurance
can be given that the transactions contemplated by the Purchase Agreement will close.

The Court also granted an
amended interim financing order approving the Company as a debtor in possession (“DIP”) lender to Erikson. As part of the
Erikson Purchase Agreement, the Company provided DIP interim financing to Erikson to cover its operating expenses and legal and professional
fees during the period between December 9, 2024 and the applicable Outside Date. Upon closing, The Company may offset some or all of the
interim financing provided against the purchase price. On February 14, 2025, the Company gave Erikson notice of the cancellation of the
Erikson Purchase Agreement, and expensed approximately $608,000 of deposits classified under the Merger and acquisition expenses in the
accompanying unaudited condensed consolidated statement of operations

NOTE 5 - MINING EQUIPMENT, NET

Mining equipment consisted of 10,725 and 8,825
units of bitcoin mining machines as of June 30, 2025 and December 31, 2024, respectively. The following