As part of the GRIID Acquisition on October 30, 2024, the Company issued several warrants to former holders of GRIID warrants. Those issued warrants include 13,800,000 Public Warrants, 7,270,000 Private Warrants, and approximately 1,734,000 GEM Warrants, of which approximately every 14 warrants are exercisable for one share of the Company’s common stock at $165.25, $165.25, and $69.55 per share, respectively.

Management has determined that the Public Warrants are subject to accounting treatment as equity, while the Private Warrants and GEM Warrants are subject to accounting treatment as liabilities. At the consummation of the GRIID Acquisition, all warrants were measured at their fair value using the Black-Scholes option pricing model and included in the purchase price calculation.

On January 3, 2025 all Private Warrants were converted to Public Warrants. At March 31, 2025, the Company used the Black-Scholes option-pricing model to estimate the fair value of the GEM Warrants using Level 3 inputs. The fair value of the GEM Warrants are included in the Other liabilities caption on the condensed consolidated balance sheets and the changes in fair value are included in Gain (loss) on derivative securities on the condensed consolidated statement of operations.

The following is a summary of stock warrant activity during the six months ended March 31, 2025.


	Number of Warrants Outstanding		Number of Shares to be Issued Upon Exercise of Warrants		Weighted Average Exercise Price ($) (1)
Balance, September 30, 2024		17,560		17,560	$	6.12
Warrants granted		22,803,726		1,586,999	$	157.96
Warrants expired		—		—	$	—
Warrants canceled		—		—	$	—
Warrants exercised		—		—	$	—
Balance, March 31, 2025		22,821,286		1,604,559	$	156.30

(1) Weighted average calculated weighting the exercise price versus the number of common shares that would be granted on exercise.

As of March 31, 2025, there were warrants exercisable to purchase 1,604,559 shares of common stock in the Company and there were no unvested warrants. These warrants have a weighted average exercise price of $156.30. Most outstanding warrants contain provisions allowing a cashless exercise at their respective exercise prices.

As of March 31, 2025, 22,813,726 of the outstanding warrants had a weighted average remaining term of 3.6 years and an intrinsic value of $0. The remaining 7,560 of the outstanding warrants do not have expiration dates and have an intrinsic value of $23.