In connection with the Company’s OTC SOL put options strategy, the Company pledges or transfers SOL to institutional counterparties to collateralize the underlying transactions. During the three and six months ended June 30, 2026, these transactions were governed by long-form confirmations and International Swaps and Derivatives Association agreements (together, “ISDA Agreements”). Under the ISDA Agreements, the Company’s SOL are pledged as collateral and can be rehypothecated, re-pledged, or otherwise deployed by the derivative counterparties. The Company’s transfer of digital assets into digital assets collateral receivable is a derecognition event and the Company recognizes a realized loss on digital assets upon derecognition of the pledged SOL (see Note 3).

The Company's outstanding SOL put option contracts as of June 30, 2026 are collateralized by 31,436 of the Company’s SOL, which have been transferred to an institutional counterparty. These 31,436 tokens are presented in aggregate as approximately $2.3 million in “Digital assets collateral receivable” on the unaudited condensed consolidated balance sheets as of June 30, 2026. Due to (i) the Company's limited historical loss experience for digital assets collateral receivable, (ii) the counterparty being an institutional counterparty and (iii) the short tenor of the outstanding options contracts there is no expected credit loss recorded as of June 30, 2026.

The following table presents a roll-forward of Digital Assets Collateral Receivable fair value for the three and six months ended June 30, 2026 (in thousands):


	Digital Assets Collateral Receivable
Fair Value as of December 31, 2025	$	—
Transfer to margin collateral	10,994
Return of margin collateral	(8,824)
Net change in fair value(1)	142
Fair value as of June 30, 2026	$	2,312

(1)Recognized within "Unrealized (gain) loss on digital assets and digital assets receivable" on the unaudited condensed consolidated statements of operations and comprehensive loss.