Company: ABTC
Filing Date: 2025-07-29
Form Type: S-4/A
Source: 0001213900-25-068715
Chunk: 401

Company: American Bitcoin Corp.
Filing Date: 2025-07-29
Form: S-4/A
Chunk 401
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 ongoing basis, ABTC’s management evaluates these estimates and assumptions, and the effects of any such revisions are reflected in the combined financial statements in the period in which they are determined to be necessary. Actual outcomes could differ materially from those estimates in a manner that could have a material effect on ABTC’s combined financial statements. Set forth below are the policies and estimates that ABTC has identified as critical to its business operations and understanding its results of operations, based on the high degree of judgment utilized or complexity in their application. While ABTC’s significant accounting policies are described in more detail in Note 2. Significant Accounting Policies and Recent Accounting Pronouncementsto ABTC’s combined financial statements for the period ended December31, 2024 and Note 2. Significant Accounting Policies and Recent Accounting Pronouncementsto ABTC’s condensed combined financial statements for the period ended March31, 2025 included elsewhere in this proxy statement/prospectus, ABTC believes the following accounting policies and estimates to be the most critical to fully understand and evaluate this management discussion and analysis: •use of estimates; •fair value measurement; •digital assets; •property and equipment, net; •impairment of long -livedassets; •impairment of goodwill; •derivatives; •segment reporting; •revenue recognition; •cost of revenues (exclusive of depreciation and amortization); •stock based compensation; •income taxes; •foreign currency; •business combinations; and •Hut 8 net investment. 230 Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements. The most significant accounting estimates inherent in the preparation of ABTC’s financial statements include estimates associated with revenue recognition, determining the useful lives and recoverability of long -livedassets, goodwill, impairment analysis digital assets, allocation of costs, derivatives, stock based compensation, and current and deferred income tax assets (including the associated valuation allowance) and liabilities. Quantitative and Qualitative Disclosures About Market Risk Market Price Risk of Bitcoin ABTC is expected to hold a significant amount of Bitcoin; therefore, ABTC is exposed to the impact of market price changes in Bitcoin. Declines in the fair market value of Bitcoin will impact the