2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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9 Months Ended |
Jun. 30, 2026 |
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| Accounting Policies [Abstract] |
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| Schedule of Summarizes the Composition of the Company Accrued Liabilities |
The following table summarizes the composition of the Company’s accrued liabilities on the Condensed Consolidated Balance Sheets indicated:
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($ in thousands) |
|
June 30,
2026 |
|
|
September 30,
2025 |
|
Indirect tax contingencies |
|
$ |
67,500 |
|
|
$ |
64,481 |
|
Accrued operating expenses |
|
|
25,637 |
|
|
|
30,562 |
|
Accrued payroll expenses |
|
|
11,740 |
|
|
|
15,530 |
|
Indirect tax accruals |
|
|
8,332 |
|
|
|
6,017 |
|
Deferred consideration |
|
|
9,365 |
|
|
|
— |
|
Accrued capital expenses |
|
|
3,608 |
|
|
|
699 |
|
Other accrued liabilities |
|
|
5,160 |
|
|
|
255 |
|
Accrued liabilities |
|
$ |
131,342 |
|
|
$ |
117,544 |
|
|
| Schedule of Earnings Per Share Basic and Diluted |
Provided below is the (loss) income per share calculation for the three and nine months ended June 30, 2026 and 2025:
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For the three months ended June 30, |
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For the nine months ended June 30, |
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($ in thousands, except share and per share amounts) |
|
2026 |
|
|
2025 |
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|
2026 |
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|
2025 |
|
Numerator |
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Net (loss) income attributable to common shareholders - Basic |
|
$ |
(239,842 |
) |
|
$ |
251,787 |
|
|
$ |
(1,026,896 |
) |
|
$ |
354,645 |
|
Non-cash interest expense on convertible notes |
|
|
— |
|
|
|
693 |
|
|
|
— |
|
|
|
1,506 |
|
Net (loss) income attributable to common shareholders - Dilutive |
|
|
(239,842 |
) |
|
|
252,480 |
|
|
|
(1,026,896 |
) |
|
|
356,151 |
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Denominator |
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Weighted-average common shares outstanding - Basic |
|
|
268,426,611 |
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|
|
280,997,649 |
|
|
|
272,626,480 |
|
|
|
282,147,349 |
|
Dilutive impact of stock options and other share-based awards |
|
|
— |
|
|
|
666,010 |
|
|
|
— |
|
|
|
625,839 |
|
Dilutive impact of convertible notes |
|
|
— |
|
|
|
43,930,792 |
|
|
|
— |
|
|
|
31,379,137 |
|
Weighted-average common shares outstanding - Dilutive |
|
|
268,426,611 |
|
|
|
325,594,451 |
|
|
|
272,626,480 |
|
|
|
314,152,325 |
|
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|
(Loss) income per common share attributable to common shareholders |
|
|
|
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|
|
|
Basic |
|
$ |
(0.89 |
) |
|
$ |
0.90 |
|
|
$ |
(3.77 |
) |
|
$ |
1.26 |
|
Diluted |
|
$ |
(0.89 |
) |
|
$ |
0.78 |
|
|
$ |
(3.77 |
) |
|
$ |
1.13 |
|
|
| Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share |
The un-weighted number of shares excluded from diluted earnings per share for the three and nine months ended June 30, 2026 and 2025 are noted in the table below. Such shares were excluded as their assumed conversion would have been antidilutive or, for preferred stock, because the change-in-control conversion contingency was not satisfied.
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For the three months ended June 30, |
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For the nine months ended June 30, |
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|
|
2026 |
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|
2025 |
|
|
2026 |
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|
2025 |
|
Convertible notes |
|
|
103,941,450 |
|
|
|
- |
|
|
|
103,941,450 |
|
|
|
— |
|
Series A preferred stock conversion |
|
|
5,250,000 |
|
|
|
5,250,000 |
|
|
|
5,250,000 |
|
|
|
5,250,000 |
|
Anti-dilutive warrants |
|
|
1,604,559 |
|
|
|
1,586,999 |
|
|
|
1,604,559 |
|
|
|
1,586,999 |
|
Anti-dilutive stock options |
|
|
1,931,334 |
|
|
|
1,806,985 |
|
|
|
1,931,334 |
|
|
|
1,586,999 |
|
Anti-dilutive restricted stock awards |
|
|
25,910,723 |
|
|
|
142,694 |
|
|
|
25,910,723 |
|
|
|
142,694 |
|
Total anti-dilutive securities |
|
|
138,638,066 |
|
|
|
8,786,678 |
|
|
|
138,638,066 |
|
|
|
8,566,692 |
|
|
| Schedule of Financial Instruments |
The following table presents the Company’s assets and liabilities that are measured and recorded at fair value on the Company’s Condensed Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of June 30, 2026 and September 30, 2025:
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June 30, 2026 |
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($ in thousands) |
|
Amount |
|
|
Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Cash equivalents(1) |
|
$ |
9 |
|
|
$ |
9 |
|
|
$ |
— |
|
|
$ |
— |
|
Receivable from bitcoin collateral(2) |
|
|
100,607 |
|
|
|
— |
|
|
|
100,607 |
|
|
|
— |
|
Bitcoin |
|
|
714,293 |
|
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|
714,293 |
|
|
|
— |
|
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|
— |
|
Bitcoin derivative - Bitmain contracts |
|
|
116 |
|
|
|
— |
|
|
|
116 |
|
|
|
— |
|
DAM derivative assets |
|
|
780 |
|
|
|
— |
|
|
|
780 |
|
|
|
— |
|
Interest rate swap derivative |
|
|
26 |
|
|
|
— |
|
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|
26 |
|
|
|
— |
|
Liabilities: |
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DAM derivative liabilities |
|
|
3,040 |
|
|
|
— |
|
|
|
3,040 |
|
|
|
— |
|
Warrant liabilities |
|
|
3 |
|
|
|
— |
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|
3 |
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— |
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September 30, 2025 |
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($ in thousands) |
|
Amount |
|
|
Level 1 |
|
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Level 2 |
|
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Level 3 |
|
Assets: |
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|
Cash equivalents(1) |
|
$ |
32,992 |
|
|
$ |
32,992 |
|
|
$ |
— |
|
|
$ |
— |
|
Receivable from bitcoin collateral(2) |
|
|
294,648 |
|
|
|
— |
|
|
|
294,648 |
|
|
|
— |
|
Bitcoin |
|
|
1,189,443 |
|
|
|
1,189,443 |
|
|
|
— |
|
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|
— |
|
Bitcoin derivative - Bitmain contracts |
|
|
233 |
|
|
|
— |
|
|
|
— |
|
|
|
233 |
|
Liabilities: |
|
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|
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|
|
|
|
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|
Interest rate swap derivative |
|
|
93 |
|
|
|
— |
|
|
|
93 |
|
|
|
— |
|
Warrant liabilities |
|
|
115 |
|
|
|
— |
|
|
|
115 |
|
|
|
— |
|
(1) Represents money market funds. (2) See Note 5 - Receivable from Bitcoin Collateral for more information. The bitcoin derivative - Bitmain contracts outstanding as of September 30, 2025, which were classified within Level 3 of the fair value hierarchy, expired during the nine months ended June 30, 2026. The DAM derivative instruments outstanding as of March 31, 2026, which were classified within Level 3 of the fair value hierarchy, were settled or expired during the three months ended June 30, 2026. The bitcoin derivative - Bitmain contracts and DAM derivative instruments outstanding as of June 30, 2026 were separate from the respective Level 3 instruments described above and are classified within Level 2 based on the observability of the significant inputs used in their current period valuation. Accordingly, the different hierarchy classifications presented at the two presented balance sheet dates did not represent transfers of instruments between levels of the fair value hierarchy.
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