Digital Assets and Digital Assets Receivable, Net |
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| Digital Assets and Digital Assets Receivable, Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Digital Assets and Digital Assets Receivable, Net | Note 2. Digital Assets and Digital Assets Receivable, net Digital assets consisted of the following:
The carrying basis represents the valuation of Bitcoin at the time the Company earns the Bitcoin through mining activities or the cost paid for purchased Bitcoin. Fair value of Bitcoin was determined using Level 1 inputs. As of March 31, 2026 and December 31, 2025 approximately 112.7 Bitcoin and 88 Bitcoin, respectively, (with an approximate fair value of $7.7 million) were held in a custody account as collateral for the Company’s loans with SE & AJ Liebel Limited Partnership. Accordingly, the Company is restricted in its ability to use the Bitcoin separately held as collateral in the operation of its business. The Company regularly moves the collateral Bitcoin out of the collateral account when the fair value of such Bitcoin increases and deposits additional Bitcoin into the collateral account when the fair value of such Bitcoin decreases. The following table presents a roll-forward of Bitcoin for the three months ended March 31, 2026 and 2025:
The Company recognized cumulative realized loss from dispositions of Bitcoin of $0.8 million and $0.1 million during the three months ended March 31, 2026 and 2025, respectively. Digital Assets Receivable, net In connection with the Galaxy Loan Facility entered into on October 29, 2025, the Company has pledged 174 and 145 Bitcoin, respectively, as collateral as of March 31, 2026 and December 31, 2025 . While the loan is outstanding, Galaxy has the right and the ability to use the digital assets at its discretion, including the ability to sell or pledge the borrowed digital assets to third parties. At the conclusion of the loan, Galaxy is obligated to return the same type and quantity of digital assets as those pledged by the Company. As the collateral pledged related to the Galaxy Loan Facility can be rehypothecated, the Bitcoin is derecognized from the Company’s ending Bitcoin balance, and recorded in “Digital assets receivable, net” on the Company’s consolidated balance sheets. The digital assets receivable are initially measured upon transfer at fair value and subsequently remeasured at fair value as of the balance sheet date. A decrease in fair value of $3.2 million and nil was recognized within “Loss on fair value of digital assets receivable” on the consolidated statements of operations for the three months ended March 31, 2026 and 2025, respectively. The digital assets receivable balance was evaluated for possible credit losses, in accordance with ASC 326 - Financial Instruments - Credit Losses. An allowance for credit losses of $3 thousand and $9 thousand are recorded in “Digital assets receivable, net” on the Company’s consolidated balance sheets as of March 31, 2026 and December 31, 2025, respectively.
A summary of digital assets receivable, net is as follows:
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