American Bitcoin (ABTC), co-founded by Eric Trump (에릭 트럼프), the second son of U.S. President Donald Trump, has tied up 3,090 of the 8,002 bitcoins it holds under a contract to purchase mining equipment, it was reported.

On Aug. 4 local time, blockchain outlet CryptoSlate reported that the amount equals 38.6% of the company's bitcoin holdings.

The key point is that the bitcoin was set as collateral for the purchase of Bitmain mining equipment. American Bitcoin retains redemption rights and economic exposure, so it continued to record the amount as an asset on its balance sheet. It can keep the coins if it pays in cash before each redemption period ends. If it misses the deadline, the pledged bitcoin is treated as payment for the equipment purchase and is removed from the books.

The company was established in 2025 by Hut 8 and American Data Centers. At launch, Hut 8 held an 80% stake, and Eric Trump served as co-founder and chief strategy officer.

In its second-quarter disclosure, the book value of the pledged bitcoin was tallied at $184.90 million, and non-current mining rig purchase liabilities at $371.70 million. The former is the fair value of bitcoin as of June 30, while the latter is an accounting liability stemming from equipment purchase and redemption contracts, so they cannot be directly compared.

Most of the pledged amount came from a total of 2,776 BTC tied up in several tranches in 2025. The redemption period for each contract is about 24 months from the date the collateral was set. A separate contract signed in February 2026 included 11,298 mining rigs. The price was about $49.40 million, and American Bitcoin provided 314 BTC as collateral for the portion equal to 80% of the payment.

Under this contract, the remaining 20% is payable one year after the equipment is shipped. Payment can be made in cash, bitcoin valued at a pre-set floor price, or a combination of both. The 314 BTC contract also has a redemption period of about 24 months, with an optional 12-month extension.

The market is focused on when bitcoin price swings could trigger actual action, but under the contract structure, what determines timing is the redemption period, not the price. Under the disclosed terms, a change in the bitcoin price does not automatically trigger any action. If a bear market persists, the value of reserves would fall and the economics of injecting cash to keep the coins could change.

American Bitcoin's second-quarter loss was also disclosed. The company posted a net loss of $57.20 million under U.S. accounting standards. The figure reflected a $71.20 million loss on digital assets, a $18.30 million gain on derivatives, and $28.20 million in depreciation and amortisation of intangible assets. The net loss figure alone, however, cannot be used to gauge the company's cash position.

It raised cash through the stock market. American Bitcoin secured net proceeds of $33.60 million by selling 2.15 million Class A shares, on a split-adjusted basis, through an at-the-market programme. Outstanding shares rose about 3% from the previous quarter. By contrast, bitcoin holdings rose 14%, and satoshis per share increased 11%.

The choices the company faces are clear. At each redemption period it must decide whether to pay cash to keep the pledged bitcoin, or hand over the amount as payment for the equipment. The focus going forward is therefore expected to be on when each contract's redemption period comes due and the company's ability to mobilise cash, rather than on bitcoin prices themselves.