v3.26.1
Fair Value Measurements
 9 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

5. Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value is as follows:

Level 1 - Observable inputs such as quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activities and that are significant to the fair value of the assets or liabilities.

Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. We review the fair value hierarchy classification at each reporting period. As of March 31, 2026 and June 30, 2025, we had no financial assets or liabilities measured at fair value on a nonrecurring basis. As of June 30, 2025, we had no financial liabilities measured at fair value on a recurring basis.

As of June 30, 2025, our financial assets measured at fair value, on a recurring basis, consisted of our cash equivalents of $17.8 million. The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 (in thousands):

 

 

As of March 31, 2026

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

6,616

 

 

$

6,616

 

 

$

—

 

 

$

—

 

Digital assets

 

 

2,084

 

 

 

2,084

 

 

 

—

 

 

 

—

 

Digital assets, net of current portion

 

 

38,237

 

 

 

38,237

 

 

 

—

 

 

 

—

 

Digital assets receivable, net

 

 

7,899

 

 

 

7,899

 

 

 

—

 

 

 

—

 

Total assets measured on a recurring basis

 

$

54,836

 

 

$

54,836

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities - Covered Call Options

 

$

9

 

 

 

—

 

 

$

9

 

 

 

—

 

Total liabilities measured on a recurring
    basis

 

$

9

 

 

$

—

 

 

$

9

 

 

$

—

 

The following table presents the changes in the carrying amount of our digital assets (in thousands):

Balance as of June 30, 2025

 

$

—

 

Purchases of digital assets

 

 

100,000

 

Change in fair value of digital assets - unrealized loss

 

 

(631

)

Balance as of September 30, 2025

 

 

99,369

 

Change in fair value of digital assets:

 

 

 

Realized loss upon transfer of digital assets as collateral

 

 

(1,964

)

Unrealized loss on digital assets

 

 

(24,552

)

Digital assets transferred as collateral

 

 

(10,696

)

Digital assets returned by GSR Markets

 

 

1,813

 

Balance as of December 31, 2025

 

 

63,970

 

Change in fair value of digital assets:

 

 

 

Realized loss on sale of digital assets

 

 

(1,889

)

Realized loss upon transfer of digital assets as collateral

 

 

(2,626

)

Unrealized loss on digital assets

 

 

(14,330

)

Digital assets transferred as collateral

 

 

(2,879

)

Disposition of digital assets

 

 

(1,925

)

Balance as of March 31, 2026

 

$

40,321