v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities measured and recorded at fair value on a recurring basis (in thousands):
March 31, 2026
Level 1Level 2Level 3Total
Assets
Cash and cash equivalents:
Money market funds$— $— $— $— 
Restricted cash equivalents:
Money market funds1,689 — — 1,689 
Crypto assets held:
Bitcoin262,110 — — 262,110 
Ether5,283 — — 5,283 
Other crypto assets4,563 — — 4,563 
Accounts receivable, net:
Derivative assets(1)
— (629)— (629)
Prepaid expenses and other current assets:
Equity securities239 — — 239 
Crypto asset options— 139 — 139 
Crypto asset futures— 9 — 9 
Other non-current assets:
Warrants— — 757 757 
  Total assets$273,884 $(481)$757 $274,160 
Liabilities
Related party loans:
Derivative liabilities(1)
$— $8,233 $— $8,233 
Other current liabilities:
Crypto asset collateral payable— 480 — 480 
Crypto asset options— 139 — 139 
Crypto asset futures— 30 — 30 
  Total liabilities$— $8,882 $— $8,882 
__________________
(1) Excludes the related host contracts which are not measured and recorded at fair value as of March 31, 2026 and are disclosed in the table below.
December 31, 2025
Level 1Level 2Level 3Total
Assets
Cash and cash equivalents:
Money market funds$21,242 $— $— $21,242 
Restricted cash equivalents:
Money market funds$1,674 $— $— $1,674 
Crypto assets held:
Bitcoin420,635 — — 420,635 
Ether8,072 — — 8,072 
Other crypto assets10,915 — — 10,915 
Accounts receivable, net:
Derivative assets(1)
— (371)— (371)
Prepaid expenses and other current assets:
Equity securities357 — — 357 
Crypto asset options— 69 — 69 
Other non-current assets:
Warrants— — 851 851 
Total assets$462,895 $(302)$851 $463,444 
Liabilities
Related party loans:
Derivative liabilities(1)
$— $188,576 $— $188,576 
Other current liabilities:
Crypto asset collateral payable— 904 — 904 
Crypto asset options— 69 — 69 
Crypto asset futures— 13 — 13 
Total liabilities$— $189,562 $— $189,562 
__________________
(1) Excludes the related host contracts which are not measured and recorded at fair value as of December 31, 2025 and are disclosed in the table below.

Refer to Note 2. Summary of Significant Accounting Policies for further details on the valuation methods and significant inputs of the Level 2 and Level 3 assets and liabilities identified in the Company's audited annual consolidated financial statements for the year ended December 31, 2025.

During the three months ended March 31, 2026, the Company did not make any transfers in or out of Level 3 of the fair value hierarchy.
The following table is a roll-forward of Level 3 investments measured and recorded at fair value on a recurring basis (in thousands):

Level 3 Investments - Warrants
Three Months Ended March 31,
20262025
Beginning balance$851 $— 
Unrealized loss attributable to change in fair value(94)— 
Ending balance$757 $— 

Level 3 Investments - Convertible Notes
Three Months Ended March 31,
20262025
Beginning balance related party convertible notes$— $248,783 
Additions— 3,945 
OCI - Change in fair value attributable to instrument-specific credit risk— (1,222)
Unrealized loss attributable to change in fair value— 8,187 
Ending balance related party convertible notes$— $259,693 

Level 3 Investments - Term Loans
Three Months Ended March 31,
20262025
Beginning balance related party term loans$— $237,209 
Additions— 64,653 
OCI - Change in fair value attributable to instrument-specific credit risk— (3,105)
Unrealized loss attributable to change in fair value
— 55,547 
Ending balance related party term loans$— $354,304 

Prior to the IPO, the Company fair valued its convertible notes and convertible term loans utilizing a scenario-based approach that considered various conversion and repayment scenarios, along with a discounted cash flow analysis, which was used to determine the value of an investment today based on projections of future cash flows. The significant input utilized in the discounted cash flow analysis included the discount rate which ranged from 19.5% - 21.3% for the three months ended March 31, 2025. Upon the IPO, convertible notes and related party term loans converted to equity and were no longer outstanding as of December 31, 2025.

Assets and liabilities measured and recorded at fair value on a non-recurring basis

The Company’s non-financial assets and liabilities, such as intangible assets, software, property and equipment, and lease right-of-use assets, are adjusted to fair value on a non-recurring basis when an impairment charge is recognized. The fair value used in assessing an impairment for these assets are largely based on Level 2 or Level 3 inputs.

The Company’s strategic investments are also measured at fair value on a non-recurring basis. Such fair value measurements are based predominantly on Level 3 inputs such as the recent transaction price involving the same or similar investment, and are adjusted as necessary to reflect relevant market conditions and investment-specific factors. Refer to Note 9. Prepaid Expenses and Other Assets for additional information.
Financial assets and liabilities not measured and recorded at fair value

The following tables summarize the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and are not required to be carried at fair value on a recurring basis, as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026
Level 1Level 2Level 3
Total(1)
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents$215,623 $— $— $215,623 
Restricted cash and cash equivalents102,058 — — 102,058 
Customer custodial funds483,774 — — 483,774 
Accounts receivable, net(2)
7,549 — 25,555 33,104 
Total assets$809,004 $— $25,555 $834,559 
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value
Custodial funds due to customers$483,656 $— $— $483,656 
Third party loans— 75,349 — 75,349 
Related party loans(2)
— 244,341 — 244,341 
Funding debt— 140,457 — 140,457 
Total liabilities$483,656 $460,147 $— $943,803 
__________________
(1) The total carrying value is equal to the total estimated fair value for all financial assets and liabilities.
(2) Excludes the embedded derivatives which are measured and recorded at fair value as of March 31, 2026 and are disclosed in the table above.
December 31, 2025
Level 1Level 2Level 3
Total(1)
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents$252,215 $— $— $252,215 
Restricted cash and cash equivalents113,605 — — 113,605 
Customer custodial funds527,354 — — 527,354 
Accounts receivable, net(2)
7,280 — 23,978 31,258 
Total assets$900,454 $— $23,978 $924,432 
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value
Custodial funds due to customers$527,307 $— $— $527,307 
Third party loans— 75,151 — 75,151 
Related party loans(2)
— 215,355 — 215,355 
Funding debt— 154,374 — 154,374 
Total liabilities$527,307 $444,880 $— $972,187 
__________________
(1) The total carrying value is equal to the total estimated fair value for all financial assets and liabilities.
(2) Excludes the embedded derivatives which are measured and recorded at fair value as of December 31, 2025 and are disclosed in the table above.

The carrying values of financial assets and liabilities equal or approximate fair value because they are short-term in duration, have no defined maturity or have a floating interest rate.

The Company determined credit card receivables to be Level 3 assets. While credit card receivables are short term in duration, the Company estimates their fair value using the current expected loss model, which incorporates unobservable inputs. Accordingly, Level 3 classification is appropriate.