The Company holds investment and derivative assets and liabilities. The Company has not designated any derivatives as hedging instruments for accounting purposes. The Company’s bitcoin-linked derivative activities undertaken as part of its broader bitcoin treasury management strategy are referred to collectively as “Digital Asset Management” (“DAM”). The following table presents the carrying value of all investments and derivative instruments, aside from the Company’s warrant liability, including balances as of September 30, 2025 and activity during the period ended March 31, 2026:


Fair value measurements for derivative instruments

Condensed Consolidated Balance Sheet classification(1):	Derivative investments						Other current liabilities
($ in thousands)	Bitmain Derivatives			DAM Derivative Assets			DAM Derivative Liabilities			Interest Rate Swap
Balance as of September 30, 2025	$	233		$	—		$	—		$	(93	)
Total gains or losses for the period
(Loss) gain on derivative securities		(5,463	)		5,622			6,630			54
Purchases, sales, and settlements
Purchased and acquired options		6,513			—			16,897			—
Written options		—			—			(33,952	)		—
Settlements and expiries		—			(5,406	)		6,639			—
Balance as of March 31, 2026	$	1,283		$	216		$	(3,786	)	$	(39	)

(1) Balance rows presented represent assets if positive or liabilities if negative.

Derivative contracts are measured at fair value, with changes in fair value and settlements recognized in earnings in the period in which they occur. The Company evaluates all financing and service agreements for potential embedded derivative features that may require bifurcation.

All derivative instruments are recorded in the Condensed Consolidated Balance Sheets at fair value and are classified as current or noncurrent based on the expected timing of settlement. Gains and losses related to a derivative executed as part of the Company’s bitcoin treasury management strategy, both realized and unrealized, are reported on the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income within (Loss) gain on derivative securities, net within Other (expense) income.

The Company enters into bitcoin-linked derivative contracts to economically hedge the volatility of bitcoin prices and to generate liquidity in support of core operating activities. These derivatives are referred to as DAM Derivatives. These contracts serve as a strategic alternative to selling bitcoin directly and are intended to monetize the Company’s bitcoin holdings while managing exposure to adverse price movements. The types of derivatives utilized for this purpose may include bitcoin forward, options, and other structured instruments. These contracts are typically short-term in nature and may be cash-settled or settled in-kind.

During the six months ended March 31, 2026, the Company engaged in calls, puts, and forward contracts. The contracts that were settled through physical delivery of bitcoin resulted in cash proceeds that are reported within the Proceeds from sale of bitcoin and option settlement line item in the Condensed Consolidated Statements of Cash Flows. The Company recognized a total gain, net, from the DAM activity of $6,630 during the same period which is included in (Loss) gain on derivative securities, net in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. As of March 31, 2026 the Company held $3,786 of derivative liabilities with respect to its call and put contracts. The Company maintains a limited amount of bitcoin and cash collateral with these organizations in connection with such transactions. See Note 5 - Receivable from Bitcoin Collateral for further discussion related to bitcoin posted for collateral.

During the six months ended March 31, 2026, the Company entered into a new miner procurement arrangement with Bitmain that included a contractual option to repurchase an equivalent amount of bitcoin at a fixed U.S. dollar price. This repurchase right was accounted for as a derivative and presented above as Bitmain Derivative and was recorded at fair value in the Condensed Consolidated Balance Sheets. The Bitmain option is a bitcoin-linked derivative but was not entered into as part of the Company’s DAM strategy and was therefore excluded from DAM activity. The Bitmain contract continues to be accounted for as a derivative and measured with a fair value of $1,283. The unrealized loss of $5,463 related to Bitmain instruments was included in (Loss) gain on derivative securities, net in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income for the six months ended March 31, 2026.

The Company also had cash receivables related to bitcoin-denominated puts sold of approximately $32,828, which included non-bitcoin-linked receivables arising from collateralized transactions associated with such puts. This amount was recorded in Prepaid expense and other current assets in the Condensed Consolidated Balance Sheets as of March 31, 2026.

The Company is party to two interest rate swap agreements. These derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets with changes in fair value recognized in current earnings within (Loss) gain on derivative securities, net.

In relation to the Company’s Western Alliance Bank Credit Agreement entered into in August 2024, the Company holds an interest rate swap agreement (see Note 9 - Indebtedness). As of March 31, 2026, this interest rate swap derivative was recorded as a fair value liability of $29, reflecting a gain of $37 during the six months ended March 31, 2026.

In April 2025, the Company entered into a second interest rate swap agreement in connection with the refinancing of its corporate facility mortgage (see Note 9 - Indebtedness). As of March 31, 2026, the swap derivative was recorded as a fair value liability of $10, reflecting a gain of $17 during the three months ended March 31, 2026.

As of March 31, 2026, the interest rate swap derivatives were recorded as a combined fair value liability of $39. Changes in the fair value of the swaps resulted in a net gain of $54 for the six months ended March 31, 2026.