DIGITAL ASSETS

3 Months Ended

Mar. 31, 2026

Intangible Asset, Goodwill and Other [Abstract]

3. DIGITAL ASSETS

Digital Assets

The following table presents the Company’s digital assets held as of March 31, 2026 and December 31, 2025, which are measured at fair value in accordance in ASC 350-60, Intangibles - Crypto Assets. Measurement is based on quoted prices in active markets (Level 1 input under ASC 820, Fair Value Measurement) (in thousands, except quantity):

SCHEDULE OF DIGITAL ASSETS HELD

		March 31, 2026												December 31, 2025
		Quantity				Cost Basis				Fair Value				Quantity				Cost Basis				Fair Value
AVAX tokens			12,011,270.866			$	150,552			$	107,021				12,409,212.272			$	160,040			$	152,509
Bitcoin			21.145				1,980				1,443				13.272				1,397				1,161
Total digital assets						$	152,532			$	108,464							$	161,437			$	153,670

Activity Rollforward

The following table summarizes the activity in the Company’s digital assets for the three months ended March 31, 2026 (in thousands):

		Amounts
December 31, 2025 - Fair Market Value		$	153,670
Additions and purchases of digital assets			25
Rewards earned from blockchain infrastructure			1,622
Release of locked tokens - subscriptions receivable			3,224
Payment of vendor invoices			(12	)
Conversion to tAVAX			(8,466	)
Realized losses on digital assets			(5,297	)
Unrealized loss on market valuation			(36,302	)
March 31, 2026 - Fair Market Value		$	108,464

The Company recognized realized losses of $5.3 million on the disposition of digital assets during the three months ended March 31, 2026. There were no realized gains on dispositions of digital assets during the three months ended March 31, 2026 and 2025.

Investor Contributions - Subscriptions Receivable

The Company holds certain AVAX tokens that remain in investor wallets to which the Company does not have the private keys because the tokens are subject to restrictions, such as lock-up agreements or pledges as collateral pursuant to UCC-1 financing statements. As a result, management believes the Company does not have control of these digital assets and has presented these AVAX tokens as subscriptions receivable within the unaudited condensed consolidated statements of stockholders’ equity, as contra-equity. After each individual restriction lapses and the Company obtains control, the AVAX tokens are to digital assets.

The following table summarizes the total AVAX tokens subject to restrictions as of March 31, 2026 and December 31, 2025 (in thousands, except for quantity):

		March 31, 2026								December 31, 2025
		Quantity				Cost Basis				Quantity				Cost Basis
Restricted tokens pledged as collateral			434,700.000			$	7,207				434,700.000			$	7,207
Other restricted tokens			690,525.732				11,449				1,026,915.600				17,027
Total subscriptions receivable - digital assets			1,125,225.732			$	18,656				1,461,615.600			$	24,234

The following table summarizes the restrictions that apply to the AVAX tokens classified as digital assets and the AVAX tokens classified as subscriptions receivables as of March 31, 2026:

SCHEDULE OF SUBJECT TO RESTRICTION

Restriction Period		AVAX Tokens
Tokens unlock over 108 equal monthly increments beginning December 2026 and concluding November 2035			7,220,217
Tokens unlock in equal weekly increments concluding July 2027			1,125,988
Tokens unlock in equal quarterly increments beginning February 2026 and concluding July 2030			661,500
Tokens unlock in equal weekly increments concluding September 2027			401,883
Tokens unlock in equal weekly increments beginning in March 2026 and concluding February 2027			447,428
Tokens unlock in equal weekly increments concluding May 2027			201,362
Tokens unlock in equal weekly increments beginning September 2026 and concluding March 2027			230,000
Tokens unlock at a rate of approximately 41% in March 2026 and approximately 59% April 2026			49,990
Tokens unlock at a rate of approximately 42% per week through March 2026 and approximately 58% per week concluding March 2027			33,784
Tokens unlock in equal weekly installments concluding March 2026			11,853
Tokens			10,384,005

In accordance with ASU 2022-03 (Topic 820), these restrictions are not considered a part of the unit of account for the AVAX tokens and was not considered when measuring the AVAX tokens at fair value.