v3.26.1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
NOTE 14—FAIR VALUE MEASUREMENTS
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS
The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows:
March 31, 2026
Fair Value
(in thousands)Carrying ValueLevel 1Level 2Level 3Total
Assets:
Digital assets, at fair value$65,873 $17,851 $48,022 $— $65,873 
Digital assets pledged as collateral111,829 46,548 65,281 — 111,829 
Stablecoins(a)
5,877 5,877 — — 5,877 
Marketable securities(b)
554 554 — — 554 
Total assets$184,133 $70,830 $113,303 $— $184,133 
Liabilities:
Digital asset financing arrangements$82,986 $82,986 $— $— $82,986 
Accrued crypto loan borrowing fees(c)
184 184 — — 184 
Total liabilities$83,170 $83,170 $— $— $83,170 
(a) Amounts are included within Other current assets as stated on our Condensed Consolidated Balance Sheets.
(b) Amounts are included within Investments as stated on our Condensed Consolidated Balance Sheets.
(c) Amounts are included within Accounts payable and accrued expenses as stated on our Condensed Consolidated Balance Sheets.
December 31, 2025
Fair Value
(in thousands)Carrying ValueLevel 1Level 2Level 3Total
Assets:
Digital assets, at fair value$136,000 $30,156 $105,844 $— $136,000 
Digital assets pledged as collateral103,943 56,968 46,975 — 103,943 
Stablecoins(a)
522 522 — — 522 
Debt securities(b)
841 841 — — 841 
Marketable securities(b)
698 698 — — 698 
Total$242,004 $89,185 $152,819 $— $242,004 
Liabilities:
Digital asset financing arrangements$67,521 $67,521 $— $— $67,521 
Accrued crypto loan borrowing fees(c)
256 256 — — 256 
Total$67,777 $67,777 $— $— $67,777 
(a) Amounts are included within Other current assets as stated on our Condensed Consolidated Balance Sheets.
(b) Amounts are included within Investments as stated on our Condensed Consolidated Balance Sheets.
(c) Amounts are included within Accounts payable and accrued expenses as stated on our Condensed Consolidated Balance Sheets.
Financial assets and liabilities classified within Level 1 are valued using unadjusted quoted prices for identical assets and liabilities in active markets. There are no active markets for our locked SOL holdings. Accordingly, we have valued the locked SOL holdings using unadjusted quoted price on the active market we identified as the principal market, and adjusted for Level 2 inputs, which incorporate observable market transactions executed by public companies comparable to our Digital Asset Treasury segment and those transactions entered into by us.
Our derivative instruments are primarily comprised of digital asset financing arrangements and digital assets pledged as collateral for those financing arrangements and are valued based on the underlying digital asset. Derivative instruments that are classified within Level 1 are valued using unadjusted quoted prices on the active exchange that we have identified as the principal market for the underlying digital asset. For derivative instruments classified within Level 2 we determine the value using quoted prices for identical tokens in markets that are not active.
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A NONRECURRING BASIS
In addition to assets and liabilities that are recorded at fair value on a recurring basis, under the framework of ASC 820, we are also required to record assets and liabilities at fair value on a nonrecurring basis for items such as acquisitions, impairment testing on property and equipment and intangible assets.
Impairments
During the first quarter 2026, we recognized impairment charges of $10.7 million on our digital assets, at carrying value due to the weakening of our liquid staking tokens against the U.S. dollar.
Warrant Dividend
We determined the fair value of the warrant dividend issued to our convertible note warrant holders to be $124.5 thousand in total, representing a $1.63 price per warrant. The fair value was determined using the Black-Scholes Option model, which utilizes significant inputs, or level 3 inputs, as defined by the fair value hierarchy. See Note 10—Stockholders’ Equity, for further discussion.
The table below shows the inputs that were used for the valuation:
March 31, 2026
Stock price$3.29 
Strike price, series 1$17.14 
Strike price, series 2$21.43 
Dividend— %
Risk free rate3.9 %
Term4.02
Volatility110.0 %
OTHER FINANCIAL INSTRUMENTS
The carrying value of our cash and cash equivalents, accounts receivable and accounts payable approximates fair value as of March 31, 2026 and December 31, 2025, respectively, due to the short-term nature of these instruments.