The Company holds investment and derivative assets and liabilities. The Company has not designated any derivatives as hedging instruments for accounting purposes. The Company’s bitcoin-linked derivative activities undertaken as part of its broader bitcoin treasury management strategy are referred to collectively as “Digital Asset Management” (“DAM”). The following table presents the carrying value of all investments and derivative instruments, aside from the Company’s warrant liability, including balances as of September 30, 2025 and activity during the period ended June 30, 2026:


Fair value measurements for derivative instruments

Condensed Consolidated Balance Sheet classification(1):	Derivative investments						Other current liabilities			(Other current liabilities) Derivative investments
($ in thousands)	Bitmain Derivatives			DAM Derivative Assets			DAM Derivative Liabilities			Interest Rate Swaps
Balance as of September 30, 2025	$	233		$	—		$	—		$	(93	)
Total gains or losses for the period
(Loss) gain on derivative securities		(6,630	)		5,869			13,158			119
Purchases, sales, and settlements
Purchased and acquired options		6,513			—			20,420			—
Written options		—			—			(45,922	)		—
Settlements and expiries		—			(5,089	)		9,304			—
Balance as of June 30, 2026	$	116		$	780		$	(3,040	)	$	26

(1) Balance rows presented represent assets if positive or liabilities if negative.

Derivative contracts are measured at fair value, with changes in fair value and settlements recognized in earnings in the period in which they occur. The Company evaluates all financing and service agreements for potential embedded derivative features that may require bifurcation.

All derivative instruments are recorded in the Condensed Consolidated Balance Sheets at fair value and are classified as current or noncurrent based on the expected timing of settlement. Gains and losses related to a derivative executed as part of the Company’s bitcoin treasury management strategy, both realized and unrealized, are reported on the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income within Gain (loss) on derivative securities, net within Other (expense) income.

The Company enters into bitcoin-linked derivative contracts to economically hedge the volatility of bitcoin prices and to generate liquidity in support of core operating activities. These derivatives are referred to as DAM Derivatives. These contracts serve as a strategic alternative to selling bitcoin directly and are intended to monetize the Company’s bitcoin holdings while managing exposure to adverse price movements. The types of derivatives utilized for this purpose may include bitcoin forward, options, and other structured instruments. These contracts are typically short-term in nature and may be cash-settled or settled in-kind.

During the nine months ended June 30, 2026, the Company engaged in calls, puts, and forward contracts. The contracts that were settled through physical delivery of bitcoin resulted in cash proceeds that are reported within the Proceeds from sale of bitcoin and option settlement line item in the Condensed Consolidated Statements of Cash Flows. The Company recognized a total gain, net, from the DAM activity of $13,158 during the same period which is included in Gain (loss) on derivative securities, net in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. As of June 30, 2026 the Company held $3,040 of derivative liabilities with respect to its call and put contracts. The Company maintains a limited amount of bitcoin and cash collateral with these organizations in connection with such transactions. See Note 5 - Receivable from Bitcoin Collateral for further discussion related to bitcoin posted for collateral.

In January 2026, the Company entered into a new miner procurement arrangement with Bitmain that included a contractual option to repurchase an equivalent amount of bitcoin at a fixed U.S. dollar price. This repurchase right was accounted for as a derivative and presented above as Bitmain Derivative and was recorded at fair value in the Condensed Consolidated Balance Sheets. The Bitmain option is a bitcoin-linked derivative but was not entered into as part of the Company’s DAM strategy and was therefore excluded from DAM activity. The Bitmain contract continues to be accounted for as a derivative and measured with a fair value of $116. The unrealized loss of $6,630 related to Bitmain instruments was included in Gain (loss) on derivative securities, net in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income for the nine months ended June 30, 2026.

The Company also had cash receivables related to bitcoin-denominated puts sold of approximately $5,854, which included non-bitcoin-linked receivables arising from collateralized transactions associated with such puts. This amount was recorded in Prepaid expense and other current assets in the Condensed Consolidated Balance Sheets as of June 30, 2026.

The Company is party to two interest rate swap agreements. These derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets with changes in fair value recognized in current earnings within Gain (loss) on derivative securities, net.

In relation to the Company’s Western Alliance Bank Credit Agreement entered into in August 2024, the Company holds an interest rate swap agreement (see Note 9 - Indebtedness). As of June 30, 2026, this interest rate swap derivative was recorded as a fair value asset of $16, reflecting a gain of $81 during the nine months ended June 30, 2026.

In April 2025, the Company entered into a second interest rate swap agreement in connection with the refinancing of its corporate facility mortgage (see Note 9 - Indebtedness). As of June 30, 2026, the swap derivative was recorded as a fair value asset of $11, reflecting a gain of $38 during the three months ended June 30, 2026.

As of June 30, 2026, the interest rate swap derivatives were recorded as a combined fair value asset of $26. Changes in the fair value of the swaps resulted in a net gain of $119 for the nine months ended June 30, 2026.

In April 2026, the Company invested a total of $44,089 in two nonconsolidated entities in which it holds minority ownership interests. These investments are included in Other long-term assets in the Condensed Consolidated Balance Sheets, and the related cash outflows are presented as Investments in other entities within investing activities in the Condensed Consolidated Statements of Cash Flows.