Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 249

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1A
Chunk 249
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 Effective Time will collectively represent less than 0.01% of the total combined voting
power of Combined Company capital stock, respectively, at the Closing. In addition, it is currently expected that at the Closing, on
the same basis, Hut 8 will own approximately 64.37% of the then-outstanding Combined Company Common Stock, on a fully diluted basis,
which is expected to represent approximately 80.00% of the total combined voting power of the Combined Company capital stock.

Accordingly, the issuance of Combined Company
Common Stock to ABTC stockholders in the Mergers will significantly reduce the ownership stake and relative voting power of each share
of Gryphon Common Stock held by current Gryphon stockholders. Consequently, following the Mergers, the ability of current Gryphon stockholders
to influence Combined Company management will be substantially reduced.

If the Combined Company is unable to realize the
strategic and financial benefits currently anticipated from the Mergers, Gryphon stockholders will have experienced substantial dilution
of their ownership interests in Gryphon without receiving the expected commensurate benefit or only receiving part of the commensurate
benefit to the extent the Combined Company is able to realize only part of the expected strategic and financial benefits currently anticipated
from the Mergers.

40

The intended benefits of the Mergers may
not be realized.

The Mergers pose risks for Gryphon’s and
ABTC’s ongoing operations, including, among others:

●that senior management’s attention may be diverted from
management of the respective businesses, current operations and development;

●that there are significant costs and expenses associated with
any undisclosed or potential liabilities; and

●that unforeseen difficulties may arise in integrating Gryphon’s
and ABTC’s businesses in the Combined Company.

As a result of the foregoing and other factors,
risks and characteristics, the Combined Company may be unable to realize the full strategic and financial benefits currently anticipated
from the Mergers and Gryphon and ABTC cannot assure you that the Mergers will be accretive to Gryphon or ABTC stockholders in the near
term or at all. Furthermore, if Gryphon or ABTC stockholders fail to realize the intended benefits of the Mergers or they take longer
than expected to achieve, the market price of the Combined Company’s common stock could decline to the extent that the market price
reflects those anticipated benefits. Gryphon stockholders will have experienced substantial dilution of their ownership interests in