Investment in ETH fund |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Investment in ETH fund | 6. Investment in ETH fund
The Company holds an investment in Dialectic Ellipse Feeder Fund LP (“Dialectic”), which is within the scope of ASC 321.
The following table presents a roll forward of Investment in ETH fund held directly by the Company:
Investment in ETH fund as of December 31, 2025, was as follows:
During the year ended December 31, 2025, the Company contributed an aggregate of 15,630 ETH, with a fair value of $55.3 million at the contribution dates, to the Dialectic Moonphase Feeder Fund LP, and subsequently on October 1, 2025 transferred its holdings into Dialectic Ellipse Feeder Fund LP (“Dialectic”) in exchange for limited partnership units of Dialectic. The Company may redeem its interest with 30 days’ notice, subject to standard fund provisions. Dialectic is a Cayman Islands limited partnership focused on decentralized finance (“DeFi”) yield strategies.
The investment in Dialectic is subject to the provisions of ASC 321 and, because the investment in Dialectic does not have a readily determinable fair value, the Company elected to use the NAV practical expedient and, therefore, the investment is not included in the fair value hierarchy.
The investment generated yield from August to December 2025 of $1,137,543 which is included in revenue in the consolidated statements of operations and comprehensive loss. Further, unrealized losses on changes in market value of ETH of $8.0 million were recognized during the year ended December 31, 2025, and are included in realized and change in unrealized gain (loss) on digital assets and investment in ETH in the consolidated statements of operations and comprehensive loss.
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