Following is a summary of the Company’s warrant activity for the six months ended June 30, 2026:

(dollar amounts in thousands, except share, per share data, and crypto asset tokens)

During the six months ended June 30, 2026, the Company issued 5,462,952 shares of its Common Stock upon the exercise of 5,462,952 pre-funded common stock warrants with an exercise price of $0.0001, which were held by Consensys, a related party (see Note 12 - Related Parties). As of June 30, 2026, Consensys also holds 3,455,019 warrants to purchase the Company’s Common Stock with exercise prices ranging from $6.15- $8.00 and expire in May 2030 that were issued in connection with a Strategic Advisory Agreement entered into May 2025 (see below).

During the six months ended June 30, 2026, the Company issued 6,354,213 shares of its Common Stock upon the exercise of 6,354,213 pre-funded Common Stock warrants with an exercise price of $0.0001, which were held by our Chairman of our Board, who is also the CEO of Consensys. As of June 30, 2026, the Chairman still holds 80,000 pre-funded Common Stock warrants with an exercise price of $0.0001 which expire May 2030.

In the June 2026 Offering (see Note 6 - Equity), the Company issued the Investor 10,013,351 warrants to purchase up to 10,013,351 shares of Common Stock. Each warrant has an exercise price of $8.15 per share, is immediately exercisable and will expire four years from the date of issuance. The warrants met the criteria for classification within stockholders’ equity as permanent equity, with no subsequent remeasurement required. The fair value of each warrant is estimated on the date of grant using a Black Scholes option-pricing model (“BSOPM”). The Company uses historical option exercise and termination data to estimate the term the options are expected to be outstanding or the contractual term. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield is calculated using historical dividend amounts and the stock price at the option issue date. Due to a lack of historical trading of the Company’s own stock, since becoming a digital asset treasury in May 2025 the expected volatility is based on a weighting of historical volatilities of peer companies and the Company’s own volatility (since May 2025) over the expected term of the warrant.

The fair value of each warrant is estimated on the date of grant using the BSOPM and the following assumptions:

The Company issued a Premium Purchase Contract (“PPC”) to an institutional investor for the right to purchase up to 4,500,000 shares of Common Stock in conjunction with the October 2025 Offering. The PPC was economically equivalent to a warrant and had an exercise price of $17.50 per share of Common Stock. The PPC expired on January 15, 2026 and was not exercised.

(dollar amounts in thousands, except share, per share data, and crypto asset tokens)

Following is a summary of the Company’s warrant activity for the six months ended June 30, 2025:

	Number of Common Stock Underlying the Warrants			Weighted Average Exercise Price Per Share		Weighted Average Remaining Life (Years)
Outstanding as of December 31, 2024		50,569		$	1.07		7.71
Exercised		(94,967	)		-		-
Issued		18,160,847			2.49		4.94
Expired		-			-
Outstanding as of June 30, 2025		18,116,449		$	2.49		4.91

During the three and six months ended June 30, 2025, the Company recognized $16,379 of stock-based compensation expense for 3,455,019 of Strategic Advisor Warrants to purchase shares of common stock issued to Consensys in conjunction with a Strategic Advisory Agreement. The Strategic Advisor Warrants have various exercise prices as follows: (i) 1,382,007 shares of Common Stock at an exercise price of $6.15 per share of Common Stock; (ii) 691,004 shares of Common Stock at an exercise price of $6.77 per share of Common Stock; (iii) 691,004 shares of Common Stock at an exercise price of $7.38 per share of common stock; and (iv) 691,004 shares of Common Stock at an exercise price of $8.00 per share of Common Stock. See Note 12 - Related Parties.

The Company recognized $12,864 of stock-based compensation expense recognized as contra-equity for the 2,764,013 Placement Agent Warrants to purchase shares of Common Stock issued to the Agent in conjunction with the May 2025 PIPE Offering. The warrants have an exercise price of $7.68 per share of Common Stock.

All other warrants issued during the three and six months ended June 30, 2025, were issued in connection with our PIPE Offerings as pre-funded warrants as disclosed in Note 6 - Equity.