Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 12

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 12
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 variant of the Pay Per Share (PPS) method, where miners receive a fixed
payout for each valid share submitted, regardless of whether the pool finds a block.

The fair value of the Bitcoin award received is
determined using the intraday average quoted price of the Bitcoin over the 24-Hour Period. The Company’s Bitcoin earned are actively
traded on the major trading platforms. The Company considers Coinbase to be its primary market. The consideration the Company will receive,
comprised of block rewards, transaction fees less mining pool operator fees are aggregated, over the 24-Hour Period, in a sub-balance
account held by the mining pool operator, which is finalized one hour later at 1:00 AM UTC. The sub-balance account is then withdrawn
to the Company’s whitelisted wallet address, once a day, between the hours of 9am to 5pm UTC time (the “Settlement”).
The rate of payment occurs once per day, as long as the minimum payout threshold of 0.01 bitcoin has accumulated in the sub- account balance,
in accordance with the mining pool operator’s terms of service. At the time of Settlement, the company values the amount of Bitcoin
earned. Given that the contract duration is considered less than 24 hours, the Company uses the average Bitcoin price over the 24-hour
period, as quoted by Coinbase, to record the revenue. By utilizing the average daily price of bitcoin over the time earned, the Company
eliminates any differences that may arise due to the volatility in trading price between bitcoin and fiat currency during the period where
the Company establishes and completes the contract.

Pursuant to ASC 606-10-55-42,
the Company assessed if the customer’s option to renew represented a material right that represents a separate performance obligation
and noted the renewal is not a material right. The definition of a material right is a promise in a contract to provide goods or services
to a customer at a price that is significantly lower than the stand-alone selling price of the good or service. The mining pool operator
does not provide any discounts and as such there is no economic benefit to the customer and as such a separate performance obligation
does not exist under 606-10-55-42. In addition, there are no options for renewal that are separately identifiable from other promises
in the contract, such as an ability to extend the contract at a reduced price.

The performance obligation
of the Bitcoin miner under the mining