7. DIGITAL ASSET COLLATERAL RECEIVABLE

The Company entered into collateralized borrowing arrangements in which LsETH is transferred to lending counterparties as collateral for U.S. dollar borrowings. Under the terms of these arrangements, the lending counterparties have the right to sell, pledge, rehypothecate, assign, invest, use, commingle or otherwise dispose of the transferred LsETH during the term of the borrowing. During the term of these arrangements, the Company retains a contractual right to receive an equivalent quantity of LsETH upon settlement of the related borrowing.

During the ordinary course of these arrangements, the Company may transfer additional LsETH to satisfy collateral maintenance requirements or receive returned collateral as collateral requirements change or upon repayment of the related borrowing.

The following table summarizes the Company’s digital asset collateral receivable: