v3.26.1
DERIVATIVES
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES
12. DERIVATIVES
During the periods presented, the Company’s derivatives were primarily embedded forward contracts to receive or deliver a fixed amount of crypto assets in the future and crypto asset option contracts with customers in the U.S. and internationally, entered into to provide liquidity for global derivatives trading. None were designated as hedging instruments.
Impact of derivatives on the Condensed Consolidated Balance Sheets
The following table summarizes information on derivative instruments by their location in the Condensed Consolidated Balance Sheets, with amounts representing the portions of the respective line items denominated in crypto assets, as measured in U.S. dollar equivalents (in thousands):
Embedded Derivative
Host
Gross Derivative Assets
Gross Derivative Liabilities
Aggregate Carrying Value
June 30, 2026
Accounts receivable, net$4,998 $24,517 $180 $29,335 
Short-term borrowings344,615 123,100 42,767 264,282 
Obligation to return collateral2,147,595 507,041 4,497 1,645,051 
Accrued expenses and other current liabilities(1)
12,148 23 — 12,125 
Total fair value of derivatives$654,681 $47,444 
December 31, 2025
Accounts receivable, net$9,943 $22,025 $4,399 $27,569 
Short-term borrowings363,705 32,446 923 332,182 
Obligation to return collateral888,523 126,962 61,266 822,827 
Accrued expenses and other current liabilities6,897 — 2 6,899 
Total fair value of derivatives$181,433 $66,590 
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(1)    Includes immaterial gross assets and liabilities of equal amounts, representing the fair values of crypto asset option contracts. Notional amounts, which are not recorded, totaled $282.7 million for each of the asset and liability, at June 30, 2026. Derivative notional amounts are reference amounts from which the fair value of derivatives are derived and do not represent a complete measure of the risk profile of the Company’s exposure to these derivative instruments.
Impact of derivatives on the Condensed Consolidated Statements of Operations
The impacts of gains (losses) on derivative instruments recognized in the Condensed Consolidated Statements of Operations were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Short-term borrowings(1)
$41,297 $(69,671)$48,810 $(17,703)
Obligation to return collateral(1)
301,107 (183,665)436,848 (31,559)
Other(2)
6,871 14,056 16,129 (1,193)
Total$349,275 $(239,280)$501,787 $(50,455)
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(1)Changes in fair value are recognized in Transaction expense in the Condensed Consolidated Statements of Operations. The impact of changes in fair value of Crypto asset borrowings and Obligation to return collateral derivatives is naturally offset, at least in part, by the impact of changes in fair value of the associated naturally offsetting positions, which are also recognized in Transaction expense.
(2)Changes in fair value, including immaterial changes resulting from holding crypto asset option contracts, which have an equal and offsetting impact, are recognized in Other operating (income) expense, net or Other expense (income), net in the Condensed Consolidated Statements of Operations depending on the nature of the derivative.