v3.26.1
Digital Assets and Digital Assets Receivable, Net
12 Months Ended
Dec. 31, 2025
Digital Assets and Digital Assets Receivable, Net [Abstract]  
Digital Assets and Digital Assets Receivable, Net

Note 4. Digital Assets and Digital Assets Receivable, net

Digital Assets

Digital assets consisted of the following:

 

 

December 31, 2025

 

 

December 31, 2024

 

 

Bitcoin

$

 

8,061,303

 

 

 

9,019,205

 

 

Tether

 

 

2,171

 

 

 

2,722

 

 

Digital assets - current

 

 

8,063,474

 

 

 

9,021,927

 

 

Bitcoin - long-term

 

 

10,433,035

 

 

 

5,000,000

 

 

Total digital assets

$

 

18,496,509

 

 

 

14,021,927

 

 

 

 

 

 

 

 

 

 

Bitcoin

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

Number of Bitcoin held

 

 

211.4

 

 

 

150.2

 

 

 

 

 

 

 

 

 

 

Carrying basis - per Bitcoin

 

$

100,863

 

 

$

65,332

 

 

Fair value - per Bitcoin

 

$

87,505

 

 

$

93,354

 

 

Carrying basis of Bitcoin

 

$

21,322,419

 

 

$

9,812,891

 

 

Fair value of Bitcoin

 

$

18,494,338

 

 

$

14,019,205

 

 

The carrying basis represents the valuation of Bitcoin at the time the Company earns the Bitcoin through mining activities. The Fair value of Bitcoin was determined using Level 1 inputs. As of December 31, 2025 and December 31, 2024 approximately 88 Bitcoin and 54 Bitcoin, respectively, (with an approximate fair value of $7.7 million and $5.0 million, respectively) were held in a custody account as collateral for the Liebel loans. Accordingly, the Company is restricted in its ability to use the Bitcoin separately held as collateral in the operation of its business. The Company regularly moves the collateral Bitcoin out of the collateral account when the

fair value of such Bitcoin increases and deposits additional Bitcoin into the collateral account when the fair value of such Bitcoin decreases.

The following table presents a roll-forward of Bitcoin for the year ended December 31, 2025 and 2024, based on the fair value model under ASU 2023-08:

Bitcoin

 

 

 

 

 

 

 

 

December 31, 2025

 

 

December 31, 2024

 

Bitcoin beginning of period

$

 

14,019,205

 

 

$

3,406,096

 

Cumulative effect of the adoption of ASU 2023-08

 

 

-

 

 

 

614,106

 

Beginning balance

 

 

14,019,205

 

 

 

4,020,202

 

Addition of Bitcoin from mining activities

 

 

8,283,423

 

 

 

10,432,605

 

Purchase of Bitcoin

 

 

22,788,057

 

 

 

485,500

 

Bitcoin transferred as collateral for Galaxy loan

 

 

(15,704,686

)

 

 

-

 

Disposition of Bitcoin from sales

 

 

(9,030,783

)

 

 

(8,309,104

)

Gain (loss) on fair value of purchased Bitcoin, net

 

 

(52,704

)

 

 

39,197

 

Gain (loss) on fair value of Bitcoin, net

 

 

(1,808,174

)

 

 

7,350,805

 

End of period

$

 

18,494,338

 

 

 

14,019,205

 

Digital Assets Receivable, net

As of December 31, 2025 and 2024 the Company has pledged 145 Bitcoin and nil, respectively, as collateral for a draw under the Galaxy Loan Facility. While the loan is outstanding, Galaxy has the right and the ability to use the digital assets at its discretion, including the ability to sell or pledge the borrowed digital assets to third parties. At the conclusion of the loan, Galaxy is obligated to return the same type and quantity of digital assets as those pledged by the Company. As the collateral pledged related to the Galaxy Loan Facility can be rehypothecated, the Bitcoin is derecognized from the Company’s ending Bitcoin balance, and recorded in “Digital assets receivable, net” on the Company’s consolidated balance sheets.

The digital assets receivable were initially measured upon transfer at fair value and subsequently remeasured at fair value as of December 31, 2025. A decrease in fair value of $3.0 million was recognized within “Loss on fair value of digital assets receivable” on the consolidated statements of operations.

The digital assets receivable balance was evaluated for possible credit losses, in accordance with ASC 326 - Financial Instruments - Credit Losses. An allowance for credit losses of $9 thousand are included in “Credit loss on digital assets receivable” on the consolidated statements of operations.

A summary of digital assets receivable, net is as follows:

 

 

December 31, 2025

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 Digital assets receivable

$

12,687,201

 

 

 

 

$

-

 

 Credit loss reserve on digital assets receivable

 

(9,187

)

 

 

 

 

 

 End of period

$

12,678,014

 

 

 

 

$

-

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 Beginning of year

$

-

 

 

 

 

$

-

 

 Transfer of Bitcoin to receivable

 

15,704,686

 

 

 

 

 

-

 

 Credit loss reserve on digital assets receivable

 

(9,187

)

 

 

 

 

-

 

 Fair market value adjustment on digital assets receivable

 

(3,017,485

)

 

 

 

 

 

  End of period

$

12,678,014

 

 

 

 

$

-