v3.26.1
Intangible Assets
12 Months Ended
Dec. 31, 2025
Intangible Assets [Abstract]  
INTANGIBLE ASSETS
9. INTANGIBLE ASSETS

 

The Company’s intangible assets consist primarily of digital assets, including Bitcoin (“BTC”) and Ethereum (“ETH”).

 

Balance as of December 31, 2021  $14,502 
Additions of intangible assets   329 
Less: Impairment losses   (8,425)
Balance as of December 31, 2022   6,406 
Additions of intangible assets   16,025 
Less: Impairment losses   (1,035)
Balance as of December 31, 2023  $21,396 
Additions of intangible assets   9,258 
Less: Impairment losses   (781)
Balance as of December 31, 2024   29,873 
Cumulative effect upon adoption of ASU 2023-08   55,949 
Less: Change in fair value recognized in earnings   (6,723)
Balance as of December 31, 2025   79,099 

Adoption of ASU 2023-08

 

Effective January 1, 2025, the Company adopted ASU 2023-08, which requires digital assets to be measured at fair value, with changes in fair value recognized in earnings.

 

Upon adoption, the Company recorded a cumulative effect adjustment of approximately $55.9 million to retained earnings, representing the difference between the carrying value under the previous cost-less-impairment model and fair value at the adoption date.

 

Bitcoin Production

 

The following table presents our Bitcoin  mining activities for the year ended December 31, 2025.

 

   Number of
Bitcoins
   Amount 
         
Balance as of December 31, 2024   802.77   $26,348 
Receipt of BTC from mining services and investment income   -    - 
Cumulative effect upon adoption of ASU 2023-08   -    49,562 
Change in fair value recognized in earnings   -    (5,577)
Balance as of December 31, 2025   802.77    70,333 

 

The following table presents our Ethereum  mining activities for the year ended December 31, 2025.

 

   Number of
Ethereum
   Amount 
         
Balance as of December 31, 2024   2,949.79   $3,525 
Receipt of ETH from mining services and investment income   -    - 
Cumulative effect upon adoption of ASU 2023-08   -    6,387 
Change in fair value recognized in earnings   -    (1,146)
Balance as of December 31, 2025   2,949.79    8,766 

 

Fair Value Measurement

 

Digital assets are measured at fair value using quoted prices in active markets for identical assets.

 

The Company uses observable market prices from major cryptocurrency exchanges (e.g., Investing.com historical cryptocurrency data. ) as of December 31, 2025, based on a consistent pricing methodology.

 

Digital assets are classified as Level 1 within the fair value hierarchy under ASC 820.

 

There were no transfers between levels during the year.

 

Impact on Earnings

 

For the year ended December 31, 2025, the Company recognized a net loss of approximately $6.7 million related to changes in the fair value of digital assets.

 

Digital Asset Activity

 

The Company did not engage in digital asset mining activities during the year ended December 31, 2025, and no digital assets were generated during the year.

Significant Judgment

 

The determination of fair value requires judgment in selecting:

 

the principal market;
 
pricing sources; and
 
timing of measurement.

 

In addition, the Company applies judgment in assessing control over digital assets, including evaluation of wallet ownership and access.