v3.26.1
Note 7 - Financial Instruments
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Financial Instruments Disclosure [Text Block]

7. FINANCIAL INSTRUMENTS

 

Investments—Trading

 

Investments-trading consisted of the following.

 

INVESTMENTS - TRADING

(Dollars in Thousands)

 

  

June 30, 2026

  

December 31, 2025

 

Corporate bonds and redeemable preferred stock

 $35,768  $18,449 

Derivatives

  4,802   4,651 

Equity securities

  17,468   10,424 

Municipal bonds

  949   3,813 

RMBS

  3   3 

SBA loans

  34,710   43,090 

U.S. government agency MBS and CMOs

  59,248   42,471 

U.S. government agency debt securities

  20,116   17,675 

Investments-trading

 $173,064  $140,576 

 

Substantially all of the Company's investments-trading other than SBA loans serve as collateral for the Company's margin loan payable.  See note 6.  The SBA loans serve as collateral for the Company's repurchase obligations.  See note 10. 

 

Trading Securities Sold, Not Yet Purchased

 

Trading securities sold, not yet purchased consisted of the following.

 

TRADING SECURITIES SOLD, NOT YET PURCHASED

(Dollars in Thousands)

 

  

June 30, 2026

  

December 31, 2025

 

Corporate bonds and redeemable preferred stock

 $2,536  $8,107 

Derivatives

  5,419   4,245 

Equity securities

  31   463 

U.S. government agency debt securities

  31   - 

U.S. Treasury securities

  40,915   23,802 

Trading securities sold, not yet purchased

 $48,932  $36,617 

 

The Company manages its exposure to changes in interest rates for the interest rate sensitive securities it holds by entering into offsetting short positions for similar fixed rate securities. See note 5 for realized and unrealized gains recognized on investments-trading.

 

Other Investments, at Fair Value

 

Other investments, at fair value consisted of investments in the following entities.  The table is broken out by investments acquired as part of CCM's activities and all other investments.  

 

OTHER INVESTMENTS, AT FAIR VALUE

(Dollars in Thousands)

 

Company Name

Ticker

  June 30, 2026   December 31, 2025 

CCM:

         

Avax One Technology Ltd.

AVX

 $390  $1,363 

Bakkt, Inc.

BKKT

  976   - 

Critical Metals Corp.

CRML

  2,481   1,506 

Hadron Energy, Inc.

HDRN

  265   - 

Nakamoto Inc.

NAKA

  -   1,802 

Namib Minerals

NAMM

  1,082   2,779 

OceanPal Inc.

SVRN

  -   2,930 

ProCap Financial, Inc.

BRR

  647   1,521 

USBC, Inc.

USBC

  -   2,482 

Placement units/warrants, pre-M&A -

NA

  56,990   18,492 

Other equity instruments

NA

  331   1,333 

Subtotal CCM

NA

  63,162   34,208 
          

Non-CCM:

         

Payoneer Global Inc.

PAYO

  1,997   - 

ProCap Financial, Inc.

BRR

  3,314   7,595 

Other equity instruments

NA

  1,007   2,969 

CK Capital Value Fund

NA

  1,417   1,171 

CREO JV

NA

  7,684   8,940 

U.S. Insurance JV

NA

  1,624   2,375 

Subtotal Non-CCM

  17,043   23,050 
          

Total Other Investments, at Fair Value

 $80,205  $57,258 

 

Placement units / warrants represent the fair value of units or warrants in pre- business combination SPACs, received by CCM for investment banking services.  As of June 30, 2026, they represent units / warrants in 44 different SPACs, 18 of which have signed business combination agreements, with the remainder still searching for operating company acquisition or merger targets.  As of December 31, 2025, they represent units / warrants in 33 different SPACs, 6 of which had signed business combination agreements, with the remainder still searching for operating company acquisition or merger targets.

 

A total of $1,527 and $2,439 of the amounts shown as other investments, at fair value above served as collateral for the Company's margin loan payable as of  June 30, 2026 and December 31, 2025, respectively.  See note 6.  

 

Other Investments Sold, Not Yet Purchased, at Fair Value

 

Other investments sold, not yet purchased, at fair value consisted of the following.

 

OTHER INVESTMENTS SOLD, NOT YET PURCHASED, AT FAIR VALUE

(Dollars in Thousands)

 

  

June 30, 2026

  

December 31, 2025

 

Equity derivatives

 $80  $- 

Other investments sold, not yet purchased, at fair value

 $80  $-