v3.26.1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS 8.        FAIR VALUE MEASUREMENTS
Recurring Fair Value Measurements
During the three months ended March 31, 2026 and 2025, a decrease of $1.0 million and an increase of $12.8 million, in fair
value of CVRs, respectively, was included in Change in fair value of warrants and contingent value rights in the Company’s
condensed consolidated statements of operations.
During the three months ended March 31, 2026 and 2025, an increase of $31.8 million and a decrease of $634.3 million, in fair
value of Warrants, respectively, was included in Change in fair value of warrants and contingent value rights in the Company’s
condensed consolidated statements of operations.
The following presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a
recurring basis as of March 31, 2026 (in thousands):
Fair Value Hierarchy
Level 1
Level 2
Level 3
Fair value
Assets:
Cash and cash equivalents
Money market funds
$1,000,384
$—
$—
$1,000,384
Digital assets
37,312
—
—
37,312
Total assets measured at fair value on a recurring basis
$1,037,696
$—
$—
$1,037,696
Liabilities:
Contingent value rights1
$2,330
$—
$—
$2,330
Warrant liabilities, current portion
844,752
844,752
Warrant liabilities, net of current portion
116,495
—
—
116,495
Total liabilities measured at fair value on a recurring basis
$963,577
$—
$—
$963,577
1 The fair value of contingent value rights is included within Other current liabilities and Other noncurrent liabilities on the Company’s condensed consolidated balance
sheets, based on the expected timing of settlement.
The following presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a
recurring basis as of December 31, 2025 (in thousands):
Fair Value Hierarchy
Level 1
Level 2
Level 3
Fair value
Assets:
Cash and cash equivalents
Money market funds
$267,721
$—
$—
$267,721
Digital assets
222,000
—
—
222,000
Total assets measured at fair value on a recurring basis
$489,721
$—
$—
$489,721
Liabilities:
Contingent value rights1
$3,366
$—
$—
$3,366
Warrant liabilities, net of current portion
936,107
—
—
936,107
Total liabilities measured at fair value on a recurring basis
$939,473
$—
$—
$939,473
1 The fair value of contingent value rights is included within Other current liabilities and Other noncurrent liabilities on the Company’s condensed consolidated balance
sheets, based on the expected timing of settlement.
Financial Instruments Not Carried at Fair Value
The Convertible Notes are recorded at amortized cost in the condensed consolidated balance sheets. The fair value is disclosed
for informational purposes only in accordance with ASC Topic 825-10, Financial Instruments, and is determined using trading
activity in over-the-counter markets. The following tables present the carrying amounts and estimated fair values of the Convertible
Notes as of March 31, 2026 and December 31, 2025 (in thousands):
March 31, 2026
Carrying Amount
Fair Value
Fair Value Hierarchy
3.00% Convertible Senior Notes due 2029
$460,000
$738,262
Level 1
0.00% Convertible Senior Notes due 2031
$625,000
$686,413
Level 1
December 31, 2025
Carrying Amount
Fair Value
Fair Value Hierarchy
3.00% Convertible Senior Notes due 2029
$460,000
$718,609
Level 1
0.00% Convertible Senior Notes due 2031
$625,000
$657,735
Level 1
Nonrecurring Fair Value Measurements
The Company measures certain non-financial assets at fair value on a nonrecurring basis when events or circumstances indicate
that the carrying amount may not be recoverable. During the three months ended March 31, 2026, the Company measured the fair
value of its mining-related long-lived asset groups in connection with the impairment charges described in Note 3 — Property, Plant,
and Equipment.
The following table presents the fair value of assets measured on a nonrecurring basis during the three months ended March 31,
2026 (in thousands):
Level 1
Level 2
Level 3
Fair value
Mining equipment
$—
$30,564
$—
$30,564
Mining infrastructure
$—
$—
$42,772
$42,772
The fair value of mining equipment was determined using a market approach based on observable pricing from published
secondary market indices for digital asset mining hardware, classified as Level 2 within the fair value hierarchy.
The fair value of mining infrastructure was determined using an income approach based on a discounted cash flow analysis of a
hypothetical colocation hosting arrangement, classified as Level 3 within the fair value hierarchy. The following table presents the
significant unobservable inputs used in the Level 3 measurement:
Significant Unobservable Input
Value
Discount rate
15% - 18%
Hosting rate ($/kW)
$2.25 - $2.50
Projection period
10 years
The Company’s financial instruments, which are not subject to recurring fair value measurements, include cash and cash
equivalents (other than money market funds), restricted cash, accounts receivable, accounts payable, leases, debt and certain accrued
expenses and other liabilities. Except for the 2029 Convertible Notes and 2031 Convertible Notes, the carrying amounts of these
financial instruments materially approximate their fair values.