Company: ABTC
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-069998
Chunk: 511

Company: American Bitcoin Corp.
Filing Date: 2025-07-31
Form: 424B3
Chunk 511
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 in fair value, as defined under debt modification accounting. The Company has evaluated the Amendment in accordance with ASC 470 -50Modification and Extinguishments. The change in the interest rate from 5.0% to 6.0% caused there to be a significant change in the cashflows of the BTC Note. Also, given that the BTC Note carried on the consolidated balance sheet at fair value, any gain on loss from the extinguishment would be adjusted through the change in fair value as of September 30, 2024. On October 25, 2024 (“Exchange Date”), the Company, its direct and indirect subsidiaries, as applicable and the Lender entered into a Debt Repayment and Exchange Agreement (the “DRE Agreement”), Loan, Guaranty and Security Agreement (the “New Loan Agreement”), the Pre -fundedWarrants (as defined below) and the $1.50 Warrants (as defined below) (collectively, the “Agreements”) to extinguish and terminate the Amended BTC Note (the “Exchange”). Pursuant to the Agreements, the following consideration was exchanged with the Lender for the settlement of the Amended BTC Note: •Approximately $9,117,000 of the Amended BTC Note principal balance was converted into shares of the Company’s common stock (the “Shares Exchanged”), at an ascribed value of $1.10 per share resulting in the issuance of 8,287,984shares of common stock to Lender, at a fair market value of $0.612 per share (the quoted market price of the Company’s common stock on the Restructuring Date), or an aggregate value of approximately $5,072,000. •Warrants to purchase 3,530,198shares of common stock, which warrants are exercisable immediately, have a ten -yearterm and an exercise price of $0.01 per share (the “Prefunded Warrants”), at a fair market value of $0.612 per share (the quoted market price of the Company’s common stock on the Restructuring Date), or an aggregate value of approximately $2,160,000. •Warrants to purchase 2,000,000shares of common stock at an exercise price of $1.50 per share (the $1.50 warrants) which will expire in five -yearsfrom the date of the transaction for a total fair value of approximately $888,000 based on the Black Scholes fair value option -pricingmodel