NOTE 6 — INTANGIBLE ASSETS AND GOODWILL

Definite-lived Intangible Assets

Our definite-lived intangible assets consist of trade names, management contracts and customer relationships, all of which are subject to amortization over their estimated useful life.

The following table presents the gross carrying amount, accumulated amortization, and net carrying amount of intangible assets as of June 30, 2026 (in thousands):

 SCHEDULE OF INTANGIBLE ASSETS AND GOODWILL

The gross carrying amount of the above definite-lived intangible assets reflects a measurement period adjustment recorded during the three months ended June 30, 2026, that decreased the preliminary estimated fair value assigned to identifiable intangible assets by an aggregate of $1.6 million (see Note 3 — Business Combinations). Accumulated amortization reflects amortization on the revised basis as if the adjustment had been recognized as of the acquisition date.

Amortization expense for intangible assets was $2.4 million and $3.5 million, respectively, for the three and six months ended June 30, 2026, and is included in depreciation and amortization expense in the condensed consolidated statements of comprehensive loss.

Estimated aggregate amortization expense for intangible assets as of June 30, 2026, is as follows (in thousands):

 SCHEDULE OF ESTIMATED AGGREGATE AMORTIZATION EXPENSE FOR INTANGIBLE ASSETS

Indefinite-lived Intangible Assets

Our indefinite-lived intangible assets consist of a domain name with a carrying amount of $3.0 million as of June 30, 2026. The asset is not subject to amortization and is evaluated for impairment annually or more frequently if events or changes in circumstances indicate that it may be impaired. There was no impairment recognized during the three and six months ended June 30, 2026.

Goodwill

The changes in the carrying amount of goodwill for the six months ended June 30, 2026, are as follows (in thousands):

 SCHEDULE OF CARRYING AMOUNT OF GOODWILL

Goodwill recognized during the six months ended June 30, 2026, relates to acquisitions described in Note 3 — Business Combinations, and is preliminary while the measurement period remains open. During the three months ended June 30, 2026, goodwill increased by $28.1 million as a result of measurement period adjustments to the preliminary estimated fair value of net assets acquired in the BTC Inc and UTXO acquisitions (see Note 3 — Business Combinations). We recognized this adjustment in the current period and did not revise amounts reported in prior periods.

We evaluate goodwill for impairment annually on November 1, or more frequently if events or changes in circumstances indicate that the asset may be impaired. On June 30, 2026, we tested both the Media & Information Services and Asset Management reporting unit goodwill balances for impairment due primarily to sustained decreases in our stock price and market capitalization as well as a decrease in the price of Bitcoin. As a result of the goodwill impairment tests, we recognized total goodwill impairment for the three and six months ended June 30, 2026, of $105.2 million, which is included in impairment of goodwill in the condensed consolidated statements of comprehensive loss.

Within our Media & Information Services reporting unit, we recorded a goodwill impairment of $80.6 million in the three and six months ended June 30, 2026. The reduction in value was primarily due to lower forecasted operating results as a result of the decline in Bitcoin price and a higher discount rate. The fair value of the Media & Information Services reporting unit was determined based on both income and market approaches. Significant assumptions used in the determination of the fair value include revenue growth, EBITDA margin, discount rate, terminal growth rate, and revenue and earnings multiples. As of June 30, 2026, the amount of goodwill after our impairment was $11.0 million for our Media & Information Services reporting unit.

Within our Asset Management reporting unit, we recorded a goodwill impairment of $24.6 million in the three and six months ended June 30, 2026. The reduction in value was primarily due to lower forecasted operating results as a result of the decline in Bitcoin price and a higher discount rate. The fair value of the Asset Management reporting unit was determined based on both income and market approaches. Significant assumptions used in the determination of the fair value include revenue growth, EBITDA margin, discount rate, terminal growth rate, and revenue multiples. As of June 30, 2026, the amount of goodwill after our impairment was $5.4 million for our Asset Management reporting unit.