Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 20

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 20
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 $107,173  
    $92,987 
  
    Carrying basis of Bitcoin 
    $802,969  
    $672,259 
  
    Fair value of Bitcoin 
    $917,000  
    $1,016,000 

14

The carrying basis (or cost basis) represents
the valuation of Bitcoin at the time the Company earns the Bitcoin through mining activities.

The Company’s Bitcoin
holdings are not subject to rehypothecation and do not serve as collateral for any existing loans or agreements. As of June 30, 2025 and
December 31, 2024, the Company held no other cryptocurrency.

As of June 30, 2025 and December 31, 2024, the
Company held 100% of its Bitcoin in cold storage and nil in hot wallets, respectively.

NOTE 3 - MARKETABLE SECURITIES

In accordance with the Agreement
and Plan of Merger, dated June 3, 2021, between Gryphon and Sphere 3D (as amended, the “Sphere 3D Merger Agreement”), the
Company received 850,000 shares of Sphere 3D’s restricted common stock upon the termination of the Sphere 3D Merger Agreement on
April 4, 2022. On June 23, 2023, Sphere 3D completed a reverse stock split of its common shares on a 1-for-7 basis. This resulted in the
Company holding 121,428 shares.

The shares are accounted
for in accordance with ASC 320 - Investments - Debt and Equity Securities, as such the shares will be classified as available-for-sale
securities and will be measured at each reporting period at fair value with the unrealized gain or (loss) as a component of other income
(expense).

The table below summarizes
the movement in this account as of:

    June 30,  2025  
    December 31, 2024 
  
    Fair value - beginning of period 
    $115,000  
    $403,000 
  
    Change in fair value 
     (43,000) 
     (288,000)
  
    Balance - end of period 
    $72,000  
    $115,000 

NOTE 4 - DEPOSITS

The deposits are summarized
as of:

    June 30,  2025  
    December 31,