Trump-Backed American Bitcoin Pledges 38.6% of BTC Holdings as Mining Collateral

American Bitcoin (ABTC), co-founded by Eric Trump, has pledged 38.6% of its BTC holdings as collateral for mining rig purchases.

The company tied up 3,090 out of 8,002 bitcoins under a contract to buy Bitmain equipment, with the key point being that the bitcoin was set as collateral.

American Bitcoin retains redemption rights and economic exposure, so it continues to record the amount as an asset on its balance sheet.

The company must decide whether to pay cash to keep the pledged bitcoin or hand over the amount as payment for the equipment at each redemption period.