DERIVATIVE INSTRUMENTS |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DERIVATIVE INSTRUMENTS | NOTE 8 — DERIVATIVE INSTRUMENTS
We write covered calls and call spreads to generate option premiums and potential economic returns from changes in option values. We also purchase protective puts and put spreads to reduce our mark-to-market exposure to adverse Bitcoin price movements over defined time horizons. These instruments are not designated as hedging instruments and are carried at fair value, with changes in fair value recognized in earnings within derivative revenue.
The following table presents the fair value of our Bitcoin derivative instruments as of June 30, 2026 (dollars in thousands):
For the three and six months ended June 30, 2026, we recognized a net gain of $10.4 million and $11.5 million, respectively, related to Bitcoin option contracts within derivative revenue on the condensed consolidated statements of comprehensive loss.
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