v3.25.2
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Recurring Fair Value Measurements
Items measured on a recurring basis at fair value:
As of June 30, 2025
(in thousands)Level 1Level 2Level 3Total
Assets
Digital financial assets$285,908 $83,741 $— $369,649 
Digital intangible assets at fair value
2,377,215 152,693 2,852 2,532,760 
Digital assets loan receivable, net of allowance — Financial assets
— 193,406 — 193,406 
Digital assets receivable7 — 6,058 6,065 
Assets posted as collateral — Digital assets— 720,539 — 720,539 
Derivative assets123,584 11,323 — 134,907 
Embedded derivative — Collateral payable — Digital assets
— 64,223 — 64,223 
Embedded derivative — Digital assets borrowed
— 70,057 — 70,057 
Investments(1)
695,250 5,531 505,187 1,205,968 
$3,481,964 $1,301,513 $514,097 $5,297,574 
Liabilities
Investments sold short(2)
$86,210 $— $— $86,210 
Derivative liabilities67,478 18,886 — 86,364 
Embedded derivative — Digital assets borrowed
— 240,379 — 240,379 
Embedded derivative — Collateral payable
— 231,868 — 231,868 
$153,688 $491,133 $— $644,821 
__________________
(1)Excludes equity securities measured utilizing net asset value as a practical expedient of $330.3 million and investments utilizing the measurement alternative of $75.7 million as they are without readily determinable fair values.
(2)Investments sold short are included in Other current liabilities in the Company’s condensed consolidated interim statements of financial position.
As of December 31, 2024
(in thousands)Level 1Level 2Level 3Total
Assets
Digital financial assets$354,851 $4,814 $— $359,665 
Digital intangible assets at fair value
1,929,661 68,239 20,457 2,018,357 
Digital assets loan receivable, net of allowance
Financial assets
— 393,734 — 393,734 
Digital assets receivable204 24 60,492 60,720 
Assets posted as collateral — Digital assets
— 278,527 — 278,527 
Derivative assets188,836 18,817 207,653 
Embedded derivative — Collateral payable
— 55,848 — 55,848 
Embedded derivative — Digital assets borrowed
— 24,039 — 24,039 
Investments(1)
751,220 — 524,573 1,275,793 
$3,224,772 $844,042 $605,522 $4,674,336 
Liabilities
Investments sold short$6,524 — — $6,524 
Derivative liabilities58,155 107,703 165,858 
Embedded derivative — Digital assets borrowed
252,635 252,635 
Embedded derivative — Collateral payable
161,261 161,261 
Embedded derivative — Notes payable
— — 136,192 136,192 
$64,679 $521,599 $136,192 $722,470 
__________________
(1)Excludes equity securities measured utilizing net asset value as a practical expedient of $304.5 million and equity securities utilizing the measurement alternative of $63.2 million as they are without readily determinable fair values.
Nonrecurring Fair Value Measurements
Impairment losses are recognized for Digital intangible assets carried at the lower of cost or impaired value and Property and equipment, net when their carrying amounts exceed fair value. See Note 14 for additional information on impairment of Property and equipment. The carrying values for Digital intangible assets carried at the lower of cost or impaired value were $656.4 million and $550.2 million as of June 30, 2025 and December 31, 2024, respectively. The Company categorized the fair value measurements for Property and equipment, net as Level 3.
The following tables summarize changes in assets and liabilities measured and reported at fair value for which Level 3 inputs have been used to determine fair value for the periods ended June 30, 2025 and December 31, 2024, respectively.
(in thousands)
Assets
Fair value, Beginning Balance
Purchases
Sales /Distributions
Net Realized Gain / (Loss)
Net Unrealized Gain / (Loss)
Transfers in /(out) of Level 3
Fair value, Ending Balance
Digital intangible assets
June 30, 2025
$20,457 $— $— $— $(5,425)$(12,180)$2,852 
December 31, 2024
$68,004 $— $— $— $(17,043)$(30,504)$20,457 
Digital assets receivable
June 30, 2025
$60,492 $2,250 $(7,817)$(48,867)$6,058 
December 31, 2024
$20,569 $— $(4,727)$4,724 $52,477 $(12,551)$60,492 
Investments
June 30, 2025
$524,573 $79,976 $(137,802)$69,605 $(32,608)$1,443 $505,187 
December 31, 2024
$364,576 $129,188 $(221,564)$117,036 $119,803 $15,534 $524,573 
Embedded derivative — Notes payable
June 30, 2025
$136,192 $— $— $— $— $(136,192)$— 
December 31, 2024
$10,472 $93,993 $— $— $31,727 $— $136,192 
Transfers in and out of Level 3 are considered to have occurred at the beginning of the period the transfer occurred. For the period ended June 30, 2025, gross transfers into Level 3 were $4.9 million and gross transfers out of Level 3 were $200.7 million. The transfers into Level 3 for Investments were due to fair value adjustments determined by unobservable market inputs. The transfers into Level 3 for Digital assets receivable were due to underlying token launches of contracts held. The transfers out of Level 3 for Investments were due to conversion of warrants into common stock. Transfers out of Level 3 for Digital assets receivable and Digital assets were due to removal of restrictions. Transfers out of Level 3 for Embedded derivative - Notes payable was due to the Reorganization Transactions. See Note 18 for additional information. For the year ended December 31, 2024, gross transfers into Level 3 were $21.2 million and gross transfers out of Level 3 were $48.7 million. The transfers into Level 3 for Investments were due to fair value adjustments determined by unobservable market inputs. The transfers into Level 3 for Digital assets receivable were due to underlying token launches of contracts held. Transfers out of Level 3 for Investments related to a conversion of a convertible note upon emergence from a bankruptcy during the year. Transfers out of Level 3 for Digital assets receivable and Digital assets were due to the removal of restrictions.
The following table presents additional information about valuation methodologies and significant unobservable inputs used for assets and liabilities that are measured and reported at fair value and categorized within Level 3 as of June 30, 2025 and December 31, 2024, respectively:
Financial Instrument
Fair Value at June 30, 2025 (in thousands)
Significant Unobservable InputsRange
Weighted Average
Digital intangible assets
2,852 Marketability discount
16.0% - 30.6%
23.5%
Digital assets receivable6,058 Marketability discount
3.5% - 89.4%
45.7%
Investments505,187 Time to liquidity event (years)
0.5 - 5.0
4.0
Annualized equity volatility
70.0% - 90.0%
88.7%
Risk free rate
3.4% - 4.3%
3.8%
Market adjustment discount
30.0% - 90.0%
48.7%
Market adjustment premium
150.0% - 180.0%
173.0%
Marketability discount
22.7% - 35.0%
27.8%
Expected dividend payout ratio
—%
—%
Enterprise value to LTM revenue multiple
2.5x - 11.0x
8.5x
Enterprise value to projected revenue multiple
3.5x - 5.5x
4.8x
Enterprise value to annualized revenue
2.5x
2.5x
Enterprise value to LTM volume
2.8x
2.8x
Enterprise Value to ARR
8.0x
8.0x
Price to tangible book value
1.3x
1.3x
EV to gross profit
6.0x
6.0x
Recovery percentage
44.0%
44.0%
 
 
Financial Instrument
Fair Value at December 31, 2024 (in thousands)
Significant Unobservable InputsRange
Weighted Average
Digital intangible assets
$20,457 Marketability discount
15.9% - 45.2%
32.1%
Digital assets receivable
$60,492 Marketability discount
5.5% - 72.8%
35.8%
Investments
$524,573 Time to liquidity event (years)
1.0 - 5.0
4.1
Annualized equity volatility
70.0% - 90.0%
88.8%
Risk free rate
3.4% - 4.4%
4.2%
Market adjustment discount
30.0% - 90.0%
41.0%
Market adjustment premium
25.0% - 130.0%
79.6%
Marketability discount
3.5% - 51.8%
26.0%
Expected dividend payout ratio
—%
—%
Enterprise value to LTM revenue multiple
2.5x - 16.8x
10.8x
Enterprise value to projected revenue multiple
2.0x - 10.5x
7.0x
Enterprise value to annualized revenue
3.5x - 9.0x
6.7x
Enterprise value to LTM volume
3.0x
3.0x
Enterprise Value to ARR
8.5x - 15.8x
10.9x
Price to tangible book value
1.5x
1.5x
Enterprise value to projected EBITDA
9.0x - 14.0x
11.5x
Scenario probability
35.0%
35.0%
Recovery percentage
35.0% - 61.6%
51.5%
Embedded derivative — Notes payable
$136,192 Volatility
45.6% - 75.0%
55.4%
Risk free rate
4.2% - 4.4%
4.3%
Time-step (years)
0.004
0.004
Increases and/or decreases in the various unobservable inputs used to determine the Level 3 valuations could result in significantly higher or lower fair value measurements.
Financial Instruments Not Measured at Fair Value
The following table presents the fair value of financial instruments not measured at fair value in the Company’s condensed consolidated interim statements of financial position. This table excludes non-financial assets and liabilities.
As of June 30, 2025
(in thousands)Carrying ValueFair ValueLevel 1Level 2Level 3
Cash and cash equivalents$691,331 $691,331 $691,331 $— $— 
Assets posted as collateral – Cash
1,220 1,220 — 1,220 — 
Accounts receivable41,393 41,393 — 41,393 — 
Loans receivable535,696 535,696 — 535,696 — 
Total Assets
$1,269,640 $1,269,640 $691,331 $578,309 $— 
Accounts payable and accrued liabilities226,080 226,080 — 226,080 — 
Notes payable725,571 965,750 — 965,750 — 
Collateral payable — Cash
25,949 25,949 — 25,949 — 
Payable to customers — Cash
16,324 16,324 — 16,324 — 
Loans payable348,214 348,214 — 348,214 — 
Settlement liability
147,873 149,368 — 149,368 149368— 
Total Liabilities
$1,490,011 $1,731,685 $— $1,731,685 $— 
As of December 31, 2024
(in thousands)Carrying ValueFair ValueLevel 1Level 2Level 3
Cash and cash equivalents$462,103 $462,103 $462,103 $— $— 
Assets posted as collateral – Cash
— — $— — $— 
Accounts receivable55,279 55,279 55,279 — $— 
Loans receivable476,620 476,620 — 476,620 $— 
Total Assets
$994,002 $994,002 $517,382 $476,620 $— 
Accounts payable and accrued liabilities281,531 281,531 281,531 — — 
Notes payable845,186 836,402 — 836,402 — 
Collateral payable — Cash
74,995 74,995 — 74,995 — 
Payable to customers — Cash
19,520 19,520 — 19,520 — 
Loans payable
510,718 510,718 — 510,718 — 
Settlement liability
182,462 182,462 — 182,462 — 
Total Liabilities
$1,914,412 $1,905,628 $281,531 $1,624,097 $—