Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Financial assets and liabilities that are measured at fair value on a recurring basis are classified as Level 1, Level 2 and Level 3 as follows (in thousands):


	As of December 31, 2025
	Total		Level 1		Level 2		Level 3
Assets:
Digital assets	$	1,238	$	—	$	1,238	$	—
Derivative assets	3,352		—		—		3,352
Total assets	$	4,590	$	—	$	1,238	$	3,352

Liabilities:

Warrant liability - Class 1 and Class 2 warrants	$	15,589	$	—	$	—	$	15,589
Warrant liability - public warrants	1,143		1,143		—		—

Total liabilities	$	16,732	$	1,143	$	—	$	15,589


	As of December 31, 2024
	Total		Level 1		Level 2		Level 3





Liabilities:

Warrant liability - Class 1 and Class 2 warrants	$	42,782	$	—	$	—	$	42,782
Warrant liability - public warrants	4,141		4,141		—		—
Total liabilities	$	46,923	$	4,141	$	—	$	42,782

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents changes in Level 3 assets measured at fair value for the year ended December 31, 2025. Both observable and unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category.


	Derivative assets
Balance as of December 31, 2024	$	—
Settlements	(10,621)
Change in fair value	13,973
Balance as of December 31, 2025	$	3,352

Significant Inputs Used for Fair Value Measurements

Inputs used to calculate the estimated fair value of the derivative assets at December 31, 2025 were as follows:


	Derivative assets
Mean monthly return	2.06	%
Volatility	68.4	%
Time to maturity (years)	10
Time to liquidity (months)	1 month
Risk free rate	2.06	%

The significant unobservable inputs used for the fair value measurement of the Class 1 Warrants and Class 2 Warrant liabilities as of December 31, 2025 are summarized as follows:


Expected term (years)	3.68
Continuous risk-free rate	3.55	%
Expected volatility	140	%

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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