NOTE 5 – DIGITAL ASSETS

As of June 30, 2026, the Company’s investment in digital assets comprises 2,914 Bitcoin, including 1,375 unrestricted Bitcoin with a carrying value of $80,521,703 and 1,539 Bitcoin with a carrying value of $90,122,335 restricted by a lender as collateral for a credit facility. Bitcoin restricted by the lender as collateral for the credit facility will remain restricted until the underlying borrowings are repaid or until the value of such collateral increases to the Collateral Refund Level (as defined below) (see Note 6 for further discussion of the borrowing arrangement, collateral requirements, and repayment provisions).

The following table summarizes the Company’s digital assets held as of June 30, 2026, and related activity for the six months ended June 30, 2026.

During the three and six months ended June 30, 2026, the Company sold 75 BTC and 1,167 BTC, respectively, for proceeds of $5,369,291 and $80,064,079, respectively, resulting in a realized losses of $3,523,476 and $56,783,735, respectively, based on the original cost of the BTC sold. BTC is a digital asset, which is a novel asset class that is subject to significant legal, commercial, regulatory and technical uncertainty. Holding BTC does not generate any cash flows and involves custodial fees and other costs. Additionally, the price of BTC has historically experienced significant price volatility, and a significant decrease in the price of BTC would adversely affect the Company’s financial condition and results of operations. The Company’s strategy of acquiring and holding BTC also exposes it to counterparty risks with respect to the custody of its BTC, cybersecurity risks, and other risks inherent to holding a digital asset. In particular, the Company is subject to the risk that, if its private keys with respect to its digital assets are lost or destroyed or other similar circumstances or events occur, the Company may lose some or all of its digital assets, which could materially adversely affect the Company’s financial condition and results of operations. To mitigate this risk, the Company utilizes multiple custodians in order to limit the concentration of holding its digital assets within one custodian.

The Company from time to time also enters into short-term put and call contracts for Bitcoin to generate income on its Bitcoin holdings. As of June 30, 2026, there were no such outstanding contracts. During the three and six months ended June 30, 2026, the Company generated income of $0 and $579,300 from trading these put and call contracts, respectively, which is recorded in other income in the condensed consolidated statement of operations.

In the period from July 1, 2026 to August 6, 2026, the Company sold 1,635 BTC and received proceeds of $102.2 million. As discussed in Note 6, during this period the Company also repaid borrowings of $20.0 million and the lender returned 585 BTC held as collateral.