Company: ABTC
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-069998
Chunk: 495

Company: American Bitcoin Corp.
Filing Date: 2025-07-31
Form: 424B3
Chunk 495
---
 services relating to all mining equipment owned, purchased, leased, operated, or otherwise controlled by Sphere 3D and/or its subsidiaries and/or its affiliates at any location. For such services the Company will receive 22.5% of the net operating profit of all of Sphere 3D’s blockchain and cryptocurrency -relatedoperations. The net operating profits in defined as the value of the digital asset mined less energy cost and profit paid to the host facility. As Sphere 3D has the ultimate right to determine the facility location for each machine. The Company has the responsibility for the following: 1)Ensuring the machines are installed in the facility selected by Sphere. 2)Selecting and connecting the machines to a mining pool. 3)To review the mining reports and maintain a wallet for the coins earned for the mining operation. 4)To maintain a custodial wallet for the coins earned from the Sphere machines. 5)To sell and/or transfer the coins at the request of Sphere. At the time the digital assets are mined, they are transferred into the custodial wallet maintained by the Company. As of the receipt of the digital asset, the Company has completed its performance obligation, the transaction price is determinable, net operating profit can be calculated so that the Company can determine its revenue under the contract; therefore, the Company records as revenue the management fee received. On October 6, 2023, Sphere 3D delivered a termination notice to the Company with respect to the Sphere MSA. Subsequent to December 31, 2024, on March 7, 2025, the Company entered into a settlement agreement and release with Sphere 3D. See Note 8 — Commitments and Contingencies and Note 13 — Subsequent Events. F-48 Gryphon Digital Mining, Inc. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2024 and 2023 NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Cost of Revenues The Company’s cost of revenue consists primarily of direct costs of earning bitcoin related to mining operations, including electric power costs, other utilities, labor, insurance whether incurred directly from self -miningoperations or reimbursed, including any revenue sharing arrangements under co -locationagreements, but excluding depreciation and amortization, which are separately stated in the Company’s Consolidated Statements of Operations. ASC 606 -10-32-25through 32 -27in the F