| Prepaid Expenses and Other Assets |
Prepaid Expenses and Other Assets Prepaid expenses and other assets consisted of the following (in thousands): | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | | | | | Prepaid expenses and other current assets | | | | | | | | | Cash collateral pledged | — | | | 16,400 | | | Prepaid expenses | 10,856 | | | 14,164 | | | Stablecoin | 21,927 | | | 12,491 | | | Prefunded clearing advance | 4,500 | | | 4,500 | | | Equity securities | 228 | | | 357 | | | Derivative assets | 212 | | | 69 | | | Loan receivables | 2,868 | | | — | | | Other | 2,899 | | | 4,159 | | | Total prepaid expenses and other current assets | $ | 43,490 | | | $ | 52,140 | | | | | | | Other non-current assets | | | | | Lease right-of-use assets, net | $ | 11,366 | | | $ | 18,559 | | | Strategic investments | 8,599 | | | 9,428 | | Warrant derivative(1) | 559 | | | 851 | | Warrant receivable(2) | 6,493 | | | 6,493 | | | Other | 5,851 | | | 5,377 | | | Total other non-current assets | $ | 32,868 | | | $ | 40,708 | | | __________________ | | | | (1) Warrant derivative represents the vested warrants received in connection with an advisory agreement. The vested warrants meet the definition of a derivative under ASC 815, Derivatives and Hedging, and are subject to fair value adjustments. As of both June 30, 2026 and December 31, 2025, 40% of the warrants' vesting conditions had been met. Refer to Note 6. Fair Value Measurements. | (2) The warrant receivable represents a contract asset initially measured at fair value of $10.8 million. As of both June 30, 2026 and December 31, 2025, $4.3 million had vested, resulting in a remaining contract asset of $6.5 million. |
Measurement alternative investments
The Company accounts for investments under the measurement alternative method whereby they are measured at cost, less impairment, subject to upward and downward adjustments resulting from observable price changes for identical or similar investments of the same issuer. The changes in the carrying value of strategic investments are accounted for under the measurement alternative are presented below (in thousands):
| | | | | | | | | | | | | Six Months Ended June 30, | | 2026 | | 2025 | | Carrying amount, beginning balance | $ | 9,428 | | | $ | 10,638 | | Net reductions(1) | (379) | | | (1,131) | | | Upward adjustments | — | | | 61 | | | Impairments and downward adjustments | (450) | | | — | | | Carrying amount, ending balance | $ | 8,599 | | | $ | 9,568 | | | __________________ | | | | | (1) Includes additions from purchases, reductions due to exits of securities and reclassifications due to changes to capital structure. |
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