v3.26.1
Digital Assets (Fair Value)
 6 Months Ended
Jun. 30, 2026
Digital Assets  
Digital Assets (Fair Value)

Note 4 – Digital Assets (Fair Value)

 

The following tables present the Company’s digital assets held as of June 30, 2026 and December 31, 2025:

 

   As of June 30, 2026   As of December 31, 2025 
Asset  Tokens   Cost   Fair Value   Tokens   Cost   Fair Value 
Ethereum (ETH)   51,226   $142,061,385   $80,420,354    70,787   $215,204,804   $210,592,607 
BNB Chain (BNB)   167    162,148    90,868    167    162,148    168,644 
Rocket Pool (RPL)   -    -    -    640    6,774    3,001 
Total       $142,223,533   $80,511,222        $215,373,726   $210,764,252 

 

  (1) As of June 30, 2026, the Company’s ETH holdings included:

 

  (a) Approximately 2,880 ETH staked to validator nodes with an approximate fair value of $4,519,000, presented in Digital assets – staked; and

 

  (b) Approximately 47,775 Aave aEthWETH tokens representing wrapped ETH deployed in DeFi protocols and serving as collateral for outstanding DeFi borrowings, with a fair value of approximately $75,003,000. The underlying ETH remains recognized within Digital assets - DeFi at fair value on the balance sheet. Although the associated aEthWETH tokens reside in the Company’s wallets, they are subject to protocol-enforced restrictions while the related borrowing is outstanding.

 

As described in Note 3 – Summary of Significant Accounting Policies, the Company classifies its digital assets by operational use into three categories:

 

   June 30, 2026   December 31, 2025 
Digital assets – treasury   988,924    2,388,607 
Digital assets – DeFi   75,003,047    177,718,244 
Digital assets – staked   4,519,251    30,657,401 
Total crypto assets   80,511,222    210,764,252 

 

Category Descriptions

 

  ● Digital assets – treasury represent unencumbered digital assets maintained for liquidity and general corporate purposes.
  ● Digital assets – DeFi represent digital assets measured at fair value deployed in DeFi protocols, primarily Aave, for lending and liquidity provision. Deposits into Aave do not result in derecognition of the underlying ETH, consistent with the Company’s accounting policy in Note 3.
  ● Digital assets – staked represent digital assets actively deployed in validator operations to earn staking rewards. These assets are subject to protocol lock-ups and governance risks.

 

 

Fair Value Measurement

 

All categories of digital assets are valued using quoted prices in active markets for identical assets and are therefore classified as Level 1 within the fair-value hierarchy (see Note 6 – Fair Value Measurements). Encumbrances arising from staking or DeFi deployments do not affect fair-value classification because such restrictions are entity-specific and do not influence observable market pricing.

 

Unrealized gains and losses on digital assets represent the period-over-period change in the fair value of digital assets held by the Company and are recognized in earnings in the period in which the change occurs.

 

Rollforward of Digital Assets Measured at Fair Value

 

The following table presents a roll forward of the Company’s digital assets measured at fair value for the six months ended June 30, 2026:

 

      
December 31, 2025 - Fair Value  $210,764,252 
Additions and purchases of digital assets   1,915,822 
Digital asset rewards earned from blockchain infrastructure and DeFi activities   3,891,151 
Sales of digital assets   (44,726,770)
Deposits into Liquidity Pool positions   (29,265,878)
Withdrawals from Liquidity Pool positions   32,533,007 
Digital asset payments   (2,009,864)
Dividends distributions paid in ETH   (723,218)
Digital asset fees   (892)
Realized gains on sale of digital assets   94,840 
Realized losses on sale of digital assets   (34,856,238)
Unrealized gains and losses on digital assets   (57,104,990)
June 30, 2026 - Fair Value  $80,511,222 

 

  (1) Deposits into liquidity pool positions represent the transfer of digital assets measured at fair value into liquidity pool arrangements, resulting in the derecognition of such digital assets and the recognition of liquidity pool positions accounted for as indefinite-lived intangible assets (see Note 5).
  (2) Realized gains (losses) presented in this rollforward include only transactions related to digital assets measured at fair value and exclude realized gains (losses) associated with liquidity pool positions and stablecoin transactions.
  (3) Unrealized gains and losses exclude changes in value of liquidity pool positions, which are accounted for under the impairment model described in Note 3.