American Bitcoin Secured Bitmain Miners at Implied 44% Discount Using BTC Collateral

American Bitcoin (NASDAQ: ABTC) effectively secured a steep discount on a February Bitmain miner purchase after pledging Bitcoin collateral valued far above the cryptocurrency’s market price at the time.

ABTC’s latest quarterly filing on Wednesday showed it paid 80% of a $49.4 million miner purchase from Bitmain through the pledge of 314 Bitcoin under a two-year redemption arrangement. That implies the pledged Bitcoin was valued at roughly $125,900 per BTC, even though Bitcoin’s average trading price in February was below $70,000 during a broader market selloff.

The agreement covered the purchase of approximately 11,298 Bitmain S21 XP ASIC miners representing about 3.05 EH/s of computing capacity. The remaining 20% of the purchase price is due one year after shipment and can be paid in cash, additional pledged Bitcoin, or a combination of both.

Under the arrangement, Bitmain cannot liquidate the pledged Bitcoin during the roughly 24-month redemption window unless ABTC chooses not to redeem the collateral by the deadline. The structure effectively gives ABTC a long-dated option on the pledged Bitcoin.

If Bitcoin trades above the mutually agreed valuation — which appears to exceed $125,900 per BTC — when the redemption period expires, ABTC could repay the obligation in cash and reclaim the Bitcoin, allowing it to retain the upside appreciation while Bitmain ultimately receives the full value of the machine sale in cash.

If Bitcoin trades below that agreed valuation by the end of the term, ABTC could instead walk away from redeeming the collateral, leaving Bitmain holding Bitcoin worth less than the original equipment price attached to the transaction.

The February transaction follows a similar structure disclosed in ABTC’s prior 2025 filings, underscoring how miner purchase agreements have evolved as conditions in the ASIC hardware market cooled from the frenzy of earlier cycles.

Under a larger 2025 Bitmain purchase agreement assigned from ABTC’s parent Hut 8 (NASDAQ: HUT), ABTC agreed to acquire up to 17,280 miners representing approximately 14.86 EH/s for as much as $320 million, largely financed through Bitcoin pledges tied to mutually agreed valuations rather than immediate cash payments.

ABTC disclosed it pledged 2,234 Bitcoin to acquire 16,299 miners representing 14.02 EH/s, while another 151 Bitcoin was pledged for a later tranche. In October 2025, the company pledged an additional 391 Bitcoin and received a $46 million refund tied to deposits previously paid by Hut 8.

As of March 31, ABTC had pledged a total of 3,090 Bitcoin to Bitmain with a fair value of approximately $210.8 million, according to the filing. The company recorded a corresponding miner purchase liability of roughly $364.3 million.

ABTC first disclosed the February purchase in March. Last month, the company said the miners had been energized at Hut 8’s Drumheller site in Alberta.