| CRYPTO ASSETS |
6. CRYPTO ASSETS
The Company measures its crypto
assets at fair value using quoted market prices in active markets for identical assets, which are classified within Level 1 of the fair
value hierarchy.
The following table presents
the Company’s significant digital asset holdings as of March 31, 2026 and December 31, 2025:
| Schedule of digital asset holdings | |
March 31, | | |
December 31, | |
| | |
2026 | | |
2025 | |
| Crypto assets | |
$ | 26,251,000 | | |
$ | 46,197,000 | |
| Crypto assets, restricted(1) | |
| 16,666,000 | | |
| - | |
| Total crypto assets holdings | |
$ | 42,917,000 | | |
$ | 46,197,000 | |
|
(1) |
The Company’s crypto assets, restricted includes Bitcoin pledged as collateral for the convertible promissory notes issued to JGB entities. See Note 12. |
The following table presents
the activities of the crypto assets for the three months ended March 31, 2026 and 2025:
| Schedule of activities of the crypto assets | |
| | | |
| | |
| | |
For the Three Months Ended March 31, | |
| | |
2026 | | |
2025 | |
| Balance at January 1 | |
$ | 46,197,000 | | |
$ | 182,000 | |
| Additions of mined crypto assets | |
| 5,077,000 | | |
| 5,198,000 | |
| Purchases of crypto assets | |
| 3,760,000 | | |
| - | |
| Sale of crypto assets | |
| - | | |
| (5,227,000 | ) |
| Transferred to crypto assets, restricted | |
| (21,360,000 | ) | |
| - | |
| Unrealized loss on crypto assets | |
| (7,405,000 | ) | |
| (8,000 | ) |
| Other | |
| (18,000 | ) | |
| (43,000 | ) |
| Balance at March 31 | |
$ | 26,251,000 | | |
$ | 102,000 | |
The following table presents
the activities of the crypto assets, restricted for the three months ended March 31, 2026:
| Schedule of activities of the crypto assets, restricted | |
|
2026 | |
| Balance at January 1 | |
$ | - | |
| Transferred to crypto assets, restricted | |
| 21,360,000 | |
| Unrealized loss on crypto assets, restricted | |
| (4,682,000 | ) |
| Other | |
| (11,000 | ) |
| Balance at March 31 | |
$ | 16,666,000 | |
|