FAIR VALUE MEASUREMENTS (Tables)
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6 Months Ended |
Jun. 30, 2025 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of Recurring Basis at Fair Value |
Items measured on a recurring basis at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of June 30, 2025 | | (in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total | | 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 receivable | | 7 | | | — | | | 6,058 | | | 6,065 | | | Assets posted as collateral — Digital assets | | — | | | 720,539 | | | — | | | 720,539 | | | Derivative assets | | 123,584 | | | 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 liabilities | | 67,478 | | | 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 1 | | Level 2 | | Level 3 | | Total | | 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 receivable | | 204 | | | 24 | | | 60,492 | | | 60,720 | | | | | | | | | | | Assets posted as collateral — Digital assets | | — | | | 278,527 | | | — | | | 278,527 | | | | | | | | | | | | Derivative assets | | 188,836 | | | 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 liabilities | | 58,155 | | | 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.
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| Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
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 | |
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| Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation |
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 | |
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| Schedule of Significant Unobservable Inputs Used for Assets and Liabilities |
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 Inputs | | Range | | Weighted Average | Digital intangible assets | | 2,852 | | | Marketability discount | | 16.0% - 30.6% | | 23.5% | | Digital assets receivable | | 6,058 | | | Marketability discount | | 3.5% - 89.4% | | 45.7% | | Investments | | 505,187 | | | 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 Inputs | | Range | | 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 |
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| Schedule of 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 Value | | Fair Value | | Level 1 | | Level 2 | | Level 3 | | | Cash and cash equivalents | | $ | 691,331 | | | $ | 691,331 | | | $ | 691,331 | | | $ | — | | | $ | — | | | Assets posted as collateral – Cash | | 1,220 | | | 1,220 | | | — | | | 1,220 | | | — | | | | Accounts receivable | | 41,393 | | | 41,393 | | | — | | | 41,393 | | | — | | | | Loans receivable | | 535,696 | | | 535,696 | | | — | | | 535,696 | | | — | | | Total Assets | | $ | 1,269,640 | | | $ | 1,269,640 | | | $ | 691,331 | | | $ | 578,309 | | | $ | — | | | | Accounts payable and accrued liabilities | | 226,080 | | | 226,080 | | | — | | | 226,080 | | | — | | | | Notes payable | | 725,571 | | | 965,750 | | | — | | | 965,750 | | | — | | | Collateral payable — Cash | | 25,949 | | | 25,949 | | | — | | | 25,949 | | | — | | | Payable to customers — Cash | | 16,324 | | | 16,324 | | | — | | | 16,324 | | | — | | | | Loans payable | | 348,214 | | | 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 Value | | Fair Value | | Level 1 | | Level 2 | | Level 3 | | Cash and cash equivalents | | $ | 462,103 | | | $ | 462,103 | | | $ | 462,103 | | | $ | — | | | $ | — | | Assets posted as collateral – Cash | | — | | | — | | | $ | — | | | — | | | $ | — | | | Accounts receivable | | 55,279 | | | 55,279 | | | 55,279 | | | — | | | $ | — | | | Loans receivable | | 476,620 | | | 476,620 | | | — | | | 476,620 | | | $ | — | | Total Assets | | $ | 994,002 | | | $ | 994,002 | | | $ | 517,382 | | | $ | 476,620 | | | $ | — | | | Accounts payable and accrued liabilities | | 281,531 | | | 281,531 | | | 281,531 | | | — | | | — | | | Notes payable | | 845,186 | | | 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 | | | $ | — | |
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