As of June 30, 2025, we did not hold any Covered Call Options. The following table presents our condensed consolidated balance sheets classification of derivatives carried at fair value (in thousands):


		March 31, 2026
Derivative	Balance Sheet Line	Asset		Liability
Derivatives not designated as hedging instruments:
Covered Call Options	Accrued liabilities	$	—	$	9
Total derivatives		$	—	$	9

During the three and nine months ended March 31, 2025, we did not hold any Covered Call Options. The following table presents our condensed statements of operations classification of derivatives carried at fair value for the periods presented (in thousands):


Derivative	Statements of Operations Line	For the Three Months Ended March 31, 2026		For the Nine Months Ended March 31, 2026
Derivatives not designated as hedging instruments:
Covered Call Options	Gain on derivative liabilities	$	192	$	733
Total derivatives		$	192	$	733

We carry our Covered Call Options at fair value with any realized gains or losses and/or changes in fair value recognized within gains on derivative liabilities, a component of other (expense) income, net, in our condensed consolidated statements of operations.

In estimating the fair value of our Covered Call Options, we use the Black-76 Model (the Black-76 Model), a derivation of the BSM Model, which includes several inputs and assumptions, including the forward price of the underlying asset (LTC), the underlying asset’s implied volatility, the risk-free interest rate, and the expected term of the Covered Call Options. The expected term of the Covered Call Options is the contractual term given the Covered Call Options can only be exercised on their expiration date (i.e., European-style options). We determined that the Covered Call Options are Level 2 liabilities given all inputs are observable.

During the three and nine months ended March 31, 2026, we issued Covered Call Options of $17.9 million and $39.9 million, respectively, notional for proceeds of $0.2 million and $0.7 million, respectively, to generate cash flows on a portion of our digital assets, which is expected to be utilized in our Share Repurchase Program. We transferred to GSR Markets LTC as collateral in a quantity equal to the underlying notional for the Covered Call Options sold. The Covered Call Options are only exercisable upon the date of expiration, are automatically exercised if the underlying reference price was greater than the strike price of the Covered Call Option, and settled with delivery of the underlying LTC. The reference price for the Covered Call Options is/was GSR's internal pricing index, aggregating prices from multiple exchanges, quoted in USD at 6:00pm UTC time for a given date.

During the three and nine months ended March 31, 2026, Covered Call Options on $19.9 million and $35.9 million notional, respectively, expired with the underlying reference price below their strike price and we recorded realized gains of $0.2 million and $0.7 million, respectively. As of March 31, 2026, we had two Covered Call Options outstanding on $4.0 million notional.