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FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 9 — FAIR VALUE MEASUREMENTS

 

We measure certain assets and liabilities at fair value on a recurring basis in accordance with ASC 820, Fair Value Measurements.

 

The following table presents the fair value hierarchy of our assets and liabilities measured at fair value as of June 30, 2026 (in thousands):

 

   Level 1   Level 2   Level 3   Total 
Digital assets  $261,714   $-   $-   $261,714 
Equity securities – RTB Digital   3,213    -    -    3,213 
Derivative assets   73    -    -    73 
Derivative liabilities   (242)   -    -    (242)
Total (1)  $264,758   $-   $-   $264,758 

 

(1)Excludes investments measured at fair value based on Net Asset Value (“NAV”) of $5.4 million as of June 30, 2026. We have investments in 210k Capital and Bitcoin Ecosystem funds and measure these investments based on the NAV of each of the funds at the end of each period.

 

Level 1 inputs consist of quoted prices in active markets for identical assets. There were no transfers between levels of the fair value hierarchy during the six months ended June 30, 2026.

 

The following table presents the changes in Level 3 assets measured at fair value for the six months ended June 30, 2026 (in thousands):

 

   Call Option 
Balance as of December 31, 2025  $199,060 
Change in fair value recognized in earnings   (107,744)
BTC Inc and UTXO acquisition date fair value consideration (see Note 3 — Business Combinations)   (91,316)
Balance as of June 30, 2026  $- 

 

The fair value of our notes payable approximates our carrying value as the interest rates are consistent with current market rates.