v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Each level of input has different levels of subjectivity and difficulty involved in determining fair value.
•Level 1 – Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Therefore, determining fair value for Level 1 investments generally does not require significant judgment, and the estimation is not difficult.
•Level 2 – Pricing is provided by third-party sources of market information obtained through investment advisors. The Company does not adjust for or apply any additional assumptions or estimates to the pricing information received from its advisors.
•Level 3 – Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The determination of fair value for Level 3 instruments involves the most management judgment and subjectivity.
The Company’s financial assets and liabilities that are measured at fair value on a nonrecurring and recurring basis as of June 30, 2026 and December 31, 2025 by level within the fair value hierarchy, are as follows:
June 30, 2026
Quoted prices in active marketsSignificant other observable inputsSignificant unobservable inputs
(in thousands)(Level 1)(Level 2)(Level 3)
Nonrecurring fair value measurements:
Assets:
NYIAX
$— $— $792 
Vivasor, Inc.
$— $— $800 
Total non recurring fair value measurements
$— $— $1,592 
Recurring fair value measurements:
Assets:
Bitcoin$49,016 $— $— 
Liabilities:
Warrant liabilities$— $115 $— 
NYIAX Investment
The Company's investment in NYIAX consists of 2,150,000 shares of NYIAX common stock, which represents approximately 3% ownership, accounted for at cost less impairments. See Note 9 for further details. The investment in NYIAX had a historical cost of $4.3 million and is carried at cost less impairment and has a carrying amount of $0.8 million. During the three and six months ended June 30, 2026, the Company recorded an impairment of the NYIAX investment of $1.0 million and $3.5 million which is recorded in the Impairment of investment in nonmarketable security line on the condensed consolidated statement of operations for the three and six months ended June 30, 2026.
Vivasor, Inc. Investment
The Company's investment in Vivasor Inc. consists of an approximate 2% ownership interest in the privately held company and is accounted for under the measurement alternative in accordance with ASC 321. During the three and six months ended June 30, 2026, the Company recognized an impairment on the investment of $55.4 million as it was determined the carrying amount was not recoverable. The investment's cost was $56.2 million and is carried at cost less impairment and has a carrying balance of $0.8 million on the condensed consolidated balance sheet as of June 30, 2026. Vivasor, Inc. is a related party of the Company, see Note 10 for related party details.
Triton GT 1 LLC Investment
The Company's investment in Triton GT 1 LLC consists of an approximate 2% membership interest in the privately held limited liability company and is accounted for under the measurement alternative in accordance with ASC 321. During the three and six months ended June 30, 2026, the Company recognized no impairment or observable price adjustments related to the investment. The investment continues to be carried at its initial cost of approximately $0.3 million, as no qualifying observable transactions or impairment indicators requiring adjustment were identified during the period.
December 31, 2025
Quoted prices in active marketsSignificant other observable inputsSignificant unobservable inputs
(in thousands)(Level 1)(Level 2)(Level 3)
Assets:
Equity investment - NYIAX$— $— $4,300 
Bitcoin$92,222 $— $— 
Liabilities:
Convertible note payable$— $— $3,936 
Warrant liabilities$— $— $9 
There were no transfers between Level 1, 2 or 3 during the three and six months ended June 30, 2026 or 2025.
Convertible Notes
As described in Note 5, the Company elected the fair value option on the EOS Convertible Note issued on December 31, 2024. The Company uses level 3 inputs to measure the fair value in subsequent periods. The Company paid off the EOS Convertible Note during the six months ended June 30, 2026. See Note 5, Borrowings, for more details.
The following table includes a summary of changes in fair value of the EOS Convertible Notes.
For the six months ended June 30,
(in thousands)20262025
Beginning balance$3,936 $10,000 
Additions
— 13,942 
Change in fair value recorded in interest expense3 7,456 
Amounts settled on DV note
— (1,524)
Conversion of 10% notes
— (1,545)
Payoff on DV note(3,939)— 
Ending balance$— $28,329 
Fair Value of Crypto Assets
The following table summarizes Crypto assets held for operations (in thousands, except units):
June 30, 2026
BTCCost BasisFair Value
Bitcoin837 $73,108 $49,016 
December 31, 2025
BTCCost BasisFair Value
Bitcoin1,054 $92,051 $92,222 
For the six months ended June 30, 2026
BTC
Cost BasisFair Value
Beginning balance1,054 $92,051 $92,222 
Additions— — — 
Disposals(217)(18,943)(18,978)
Fair value remeasurement— — (24,228)
Ending balance 837 $73,108 $49,016 

During the six months ended June 30, 2026, the Company repaid $18.1 million of cash advances previously received from Scilex Holding Company (“Scilex”), a related party, by transferring 217 Bitcoin to Scilex in satisfaction of the related liability. The Bitcoin used to settle the liability had a cost basis of $18.9 million, resulting in a realized loss of $0.8 million and is recorded in Loss on digital assets in the condensed consolidated statements of operations. The Company had no transfers of Bitcoin during the three months ended June 30, 2026.
For the three and six months ended June 30, 2026, the Company recognized a fair value remeasurement loss of $8.1 million and $24.2 million, respectively. Realized gains and losses and fair value remeasurement gains and losses from Crypto assets are recorded in Loss on digital assets in the condensed consolidated statements of operations. The Company accounts for disposals of Bitcoin using the first-in, first-out (“FIFO”) method.