American Bitcoin Company (ABTC) purchases Bitmain miners using Bitcoin as collateral, with an actual discount of 44%

Deep Tide TechFlow News, May 8th, according to TheEnergyMag reports, the U.S. Bitcoin company (NASDAQ: ABTC) disclosed in its latest quarterly report that in February of this year, the company purchased approximately 11,298 S21 XP ASIC miners (hash rate about 3.05 EH/s) from Bitmain for $49.4 million, of which 80% of the payment was made by pledging 314 BTC. Based on this, the protocol valuation of the pledged Bitcoin is approximately $125.9k per BTC, while the BTC market price at that time was less than $70k, representing a discount of about 44%.

According to the agreement, Bitmain cannot forcibly liquidate the pledged BTC within approximately 24 months of the redemption period. If at maturity the BTC price is higher than the protocol valuation, ABTC can choose to repay in cash and retrieve the BTC, locking in the appreciation gains; if below the protocol valuation, it can forgo the redemption and leave the BTC with Bitmain. This structure essentially grants ABTC a long-term Bitcoin bullish option.

As of March 31, 2026, ABTC has pledged a total of 3,090 BTC to Bitmain, with a fair value of about $210.8 million, corresponding to a mining machine purchase debt of approximately $364.3 million. The above miners have been deployed at its parent company Hut 8’s (NASDAQ: HUT) site in Drumheller, Alberta, Canada.

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