v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Measurements [Abstract]  
Fair Value Measurements
15.Fair Value Measurements

 

The following table summarizes the assets and liabilities measured at fair value on a recurring basis:

 

   Level 1   Level 2   Level 3 
   Digital Assets   Warrant Liability   Derivative Liability 
December 31, 2024  $
-
   $40,391,302   $184,699,998 
Purchase of digital assets   19,100,000    
-
    
-
 
Change in fair value   3,493,025    (15,442,843)   (9,700,000)
Settlement of derivative liability   
-
    
-
    (174,999,998)
June 30, 2025  $22,593,025   $24,948,459   $
-
 

 

Digital Assets

 

Digital assets arose from our bitcoin investment. Changes in fair value of digital assets reflect gains or losses arising from the remeasurement of our bitcoin investment based on an exchanged quoted price. Refer to Note 5.

 

Warrant Liability

 

Warrant liability consists of warrants issued by the Company in public offerings, private placements, and forward purchase contracts. As of June 30, 2025 and December 31, 2024, the number of warrants outstanding was 8,046,073 and 8,046,076, respectively, with a weighted-average exercise price of $11.50. The warrants are exercisable and will expire on September 16, 2027, or earlier upon redemption or liquidation. All warrants are publicly traded.

 

Derivative Liability

 

The derivative liability relates to the net new shares from the Tether transaction. As of the settlement date on February 7, 2025, the fair value of the derivative was $174,999,998, determined as the difference between the value of the net new shares based on the settlement date share price of $12.75 and the forward price of $7.50.