v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities measured and recorded at fair value on a recurring basis (in thousands):
June 30, 2026
Level 1Level 2Level 3Total
Assets
Restricted cash equivalents:
Money market funds$1,703 $— $— $1,703 
Crypto assets held:
Bitcoin323,893 — — 323,893 
Ether3,291 — — 3,291 
Other crypto assets3,864 — — 3,864 
Accounts receivable, net:
Derivative assets(1)
— (193)— (193)
Prepaid expenses and other current assets:
Equity securities228 — — 228 
Crypto asset options— 179 — 179 
Crypto asset futures— 33 — 33 
Other non-current assets:
Warrants— — 559 559 
  Total assets$332,979 $19 $559 $333,557 
Liabilities
Related party loans:
Derivative liabilities(1)
$— $59,310 $— $59,310 
Other current liabilities:
Crypto asset collateral payable— 480 — 480 
Crypto asset options— 182 — 182 
Crypto asset futures— — — — 
  Total liabilities$— $59,972 $— $59,972 
__________________
(1) Excludes the related host contracts which are not measured and recorded at fair value as of June 30, 2026 and are disclosed in the table below.
December 31, 2025
Level 1Level 2Level 3Total
Assets
Cash and cash equivalents:
Money market funds$21,242 $— $— $21,242 
Restricted cash equivalents:
Money market funds1,674 — — 1,674 
Crypto assets held:
Bitcoin420,635 — — 420,635 
Ether8,072 — — 8,072 
Other crypto assets10,915 — — 10,915 
Accounts receivable, net:
Derivative assets(1)
— (371)— (371)
Prepaid expenses and other current assets:
Equity securities357 — — 357 
Crypto asset options— 69 — 69 
Other non-current assets:
Warrants— — 851 851 
Total assets$462,895 $(302)$851 $463,444 
Liabilities
Related party loans:
Derivative liabilities(1)
$— $188,576 $— $188,576 
Other current liabilities:
Crypto asset collateral payable— 904 — 904 
Crypto asset options— 69 — 69 
Crypto asset futures— 13 — 13 
Total liabilities$— $189,562 $— $189,562 
__________________
(1) Excludes the related host contracts which are not measured and recorded at fair value as of December 31, 2025 and are disclosed in the table below.

Refer to Note 2. Summary of Significant Accounting Policies for further details on the valuation methods and significant inputs of the Level 2 and Level 3 assets and liabilities identified in the Company's audited annual consolidated financial statements for the year ended December 31, 2025.

During the six months ended June 30, 2026, the Company did not make any transfers in or out of Level 3 of the fair value hierarchy.
The following table is a roll-forward of Level 3 investments measured and recorded at fair value on a recurring basis (in thousands):

Level 3 Investments - Warrants
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Beginning balance$757 $— $851 $— 
Unrealized loss attributable to change in fair value(198)— (292)— 
Ending balance$559 $— $559 $— 

Level 3 Investments - Convertible Notes
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Beginning balance related party convertible notes$— $259,693 $— $248,783 
Additions— 3,990 — 7,935 
OCI - Change in fair value attributable to instrument-specific credit risk— 347 — (875)
Unrealized gain attributable to change in fair value— 9,424 — 17,611 
Ending balance related party convertible notes$— $273,454 $— $273,454 

Level 3 Investments - Term Loans
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Beginning balance related party term loans$— $354,304 $— $237,209 
Additions— 121,082 — 185,735 
OCI - Change in fair value attributable to instrument-specific credit risk— 709 — (2,396)
Unrealized gain attributable to change in fair value— 38,773 — 94,320 
Ending balance related party term loans$— $514,868 $— $514,868 

Prior to the IPO, the Company fair valued its convertible notes and convertible term loans utilizing a scenario-based approach that considered various conversion and repayment scenarios, along with a discounted cash flow analysis, which was used to determine the value of an investment today based on projections of future cash flows. The significant input utilized in the discounted cash flow analysis included the discount rate which ranged from 19.5% - 21.7% for the three and six months ended June 30, 2025. Upon the IPO, convertible notes and related party term loans converted to equity and were no longer outstanding as of December 31, 2025.

Assets and liabilities measured and recorded at fair value on a non-recurring basis

The Company’s non-financial assets and liabilities, such as intangible assets, software, property and equipment, and lease right-of-use assets, are adjusted to fair value on a non-recurring basis when an impairment charge is recognized. The fair value used in assessing an impairment for these assets are largely based on Level 2 or Level 3 inputs.
The Company’s strategic investments are also measured at fair value on a non-recurring basis. Such fair value measurements are based predominantly on Level 3 inputs such as the recent transaction price involving the same or similar investment, and are adjusted as necessary to reflect relevant market conditions and investment-specific factors. Refer to Note 9. Prepaid Expenses and Other Assets for additional information.

Financial assets and liabilities not measured and recorded at fair value

The following tables summarize the estimated fair values of the Company's financial assets and financial liabilities that are measured at amortized cost, and are not required to be carried at fair value on a recurring basis, as of June 30, 2026 and December 31, 2025 (in thousands):

June 30, 2026
Level 1Level 2Level 3
Total(1)
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents$188,618 $— $— $188,618 
Restricted cash and cash equivalents101,803 — — 101,803 
Customer custodial funds454,717 — — 454,717 
Accounts receivable, net(2)
8,861 — 15,757 24,618 
Total assets$753,999 $— $15,757 $769,756 
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value
Custodial funds due to customers$454,588 $— $— $454,588 
Third party loans— 75,016 — 75,016 
Related party loans(2)
— 199,455 — 199,455 
Funding debt— 147,382 — 147,382 
Total liabilities$454,588 $421,853 $— $876,441 
__________________
(1) The total carrying value is equal to the total estimated fair value for all financial assets and liabilities.
(2) Excludes the embedded derivatives which are measured and recorded at fair value as of June 30, 2026 and are disclosed in the table above.
December 31, 2025
Level 1Level 2Level 3
Total(1)
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents$252,215 $— $— $252,215 
Restricted cash and cash equivalents113,605 — — 113,605 
Customer custodial funds527,354 — — 527,354 
Accounts receivable, net(2)
7,280 — 23,978 31,258 
Total assets$900,454 $— $23,978 $924,432 
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value
Custodial funds due to customers$527,307 $— $— $527,307 
Third party loans— 75,151 — 75,151 
Related party loans(2)
— 215,355 — 215,355 
Funding debt— 154,374 — 154,374 
Total liabilities$527,307 $444,880 $— $972,187 
__________________
(1) The total carrying value is equal to the total estimated fair value for all financial assets and liabilities.
(2) Excludes the embedded derivatives which are measured and recorded at fair value as of December 31, 2025 and are disclosed in the table above.

The carrying values of financial assets and liabilities equal or approximate fair value because they are short-term in duration, have no defined maturity or have a floating interest rate.

The Company determined credit card receivables to be Level 3 assets. While credit card receivables are short term in duration, the Company estimates their fair value using the current expected credit loss model, which incorporates unobservable inputs. Accordingly, Level 3 classification is appropriate.