v3.26.1
Derivatives and embedded derivatives
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and embedded derivatives
9. Derivatives and embedded derivatives
The Company enters into certain strategic investments in the form of forward contracts to purchase a specified quantity of digital assets. Certain of these contracts are accounted for as derivatives or investments with embedded derivatives, and we account for these derivatives and embedded derivatives within Investments on the unaudited Condensed Consolidated Balance Sheets. The derivatives and bifurcated embedded derivatives are marked to market through Other income (expense), net in the unaudited Condensed Consolidated Statements of Operations. Embedded derivatives are presented together with the respective host contract on the unaudited Condensed Consolidated Balance Sheets.
The Company enters into certain agreements with customers to receive digital assets as non-cash consideration for services. These arrangements are hybrid instruments, consisting of a receivable host instrument with an embedded derivative based on the changes in the fair value of the underlying digital asset until receipt. Such feature is bifurcated and marked to market through Other income (expense), net on the unaudited Condensed Consolidated Statements of Operations. Embedded derivatives are presented together with the respective host contract within Accounts receivable, net on the unaudited Condensed Consolidated Balance Sheets.
The fair value of the Company’s derivatives and embedded derivatives are as follows (in thousands):
Table 9.1. Fair Value of Derivative and Embedded Derivative Assets and Liabilities
March 31, 2026December 31, 2025
Investments - embedded derivatives$161 $899 
Investments - derivatives$461 $473 
Accounts receivable, net - embedded derivatives
$19,174 $19,942 
The following table summarizes notional amounts related to derivatives and embedded derivatives (in thousands):
Table 9.2. Notional Amounts of Derivative and Embedded Derivative Assets and Liabilities
March 31, 2026December 31, 2025
Investments - embedded derivatives$1,414 $1,153 
Investments - derivatives$506 $582 
Accounts receivable, net - embedded derivatives
$4,000 $4,000 
Gains (losses) on derivatives and embedded derivatives included in Other income (expense), net in the unaudited Condensed Consolidated Statements of Operations are as follows (in thousands):
Table 9.3. Gains (losses) on Derivatives and Embedded Derivatives
Three months ended March 31,
20262025
Accounts receivable, net - embedded derivatives
$(1,161)$(976)
Investments - derivatives and embedded derivatives
$(417)$(5,340)