v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 8. Fair Value Measurements

 

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of June 30, 2026 and December 31, 2025 (In thousands):

 

   Fair value measured at June 30, 2026 
   Total fair value at
June 30, 2026		   Quoted prices in active markets
(Level 1)		   Significant other observable inputs
(Level 2)		  

Significant unobservable

inputs (Level 3)

 
                 
Assets:                    
Digital assets  $313,378   $313,378   $-   $- 
Liabilities:                    
Conversion feature liability - Convertible Notes   23    -    -    23 
Total  $313,401   $313,378   $-   $23 

 

   Fair value measured at December 31, 2025 
   Total fair value at
December 31, 2025		   Quoted prices in active markets
(Level 1)		  

Significant other

observable inputs
(Level 2)

  

Significant

unobservable

inputs (Level 3)

 
                 
Assets:                    
Digital assets  $441,791   $441,791   $-   $- 
Liabilities:                    
Derivative securities liabilities   428    -    -    428 
Conversion feature liability - Convertible Notes   2,278    -    -    2,278 
Total  $444,497   $441,791   $-   $2,706 

 

 

Conversion Feature Liability - Convertible Notes

 

The conversion feature liability associated with the Company’s Convertible Notes is measured at fair value using a Black-Scholes option pricing model and is classified within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs.

 

The key inputs used in determining the fair value of the conversion feature liability are presented in the table below:

 

   As of
June 30, 2026		   As of
December 31, 2025		 
Strike price  $13.00   $13.00 
Stock price   1.54    3.53 
Volatility (as a percentage)   43.0    45.0 
Remaining term (in years)   0.92    3.00 
Risk-free rate (as a percentage)   3.89    3.49 

 

The following table presents a roll-forward of the Convertible Note Conversion Feature Liability as of June 30, 2026 (In thousands):

 

  

Conversion feature

derivative liability

 
Balance at December 31, 2025  $2,278 
Gain on debt extinguishment   (1,309)
Change in fair value   (946)
Balance at June 30, 2026  $23 

 

Derivative Securities Liabilities

 

As of December 31, 2025, the Company had outstanding Bitcoin put option contracts with a fair value liability of $0.4 million. During the six months ended June 30, 2026, all outstanding Bitcoin put option contracts were exercised, expired, or otherwise settled, and the Company recognized a realized loss of $0.9 million related to these contracts. As of June 30, 2026, the Company had no outstanding derivative securities liabilities.