American Bitcoin has used BTC as collateral to purchase Bitmain miners, implying a discount of around 44%.

On May 8, American Bitcoin announced it has secured a mining machine purchase agreement with Bitmain featuring an implicit 44% discount via BTC collateral. Per its latest quarterly filing, the company bought 11,298 Bitmain S21 XP ASIC miners in February for roughly $49.4 million, totaling 3.05 exahashes per second (EH/s) of hash rate. Eighty percent of the payment was covered by pledging 314 BTC and a two-year redemption arrangement. At the time, the pledged BTC was valued at ~$125,900 per coin under the agreement, while BTC’s market price was under $70,000. Under the deal terms: - Bitmain may not sell the pledged BTC during the ~24-month redemption period unless American Bitcoin waives redemption. - If BTC’s price exceeds the agreed valuation, American Bitcoin can redeem the BTC with cash and retain the appreciation. - If BTC falls below the agreed valuation, the company can choose to forgo redemption, letting Bitmain hold the devalued BTC. As of March 31, American Bitcoin had pledged 3,090 BTC to Bitmain (fair value ~$211 million), corresponding to a mining machine purchase liability of ~$364 million.