Digital Assets

6 Months Ended

Jun. 30, 2026

Digital Assets [Abstract]

3. DIGITAL ASSETS

The Company measures digital assets at fair value as of each reporting period. For the six months ended June 30, 2026, the Company recognized a fair value loss of $49.49 million on its holdings of digital assets. For the same period in 2025, the Company recorded a fair value gain of $17.50 million.

The Company’s digital asset holdings include digital assets pledged by third parties pursuant to applicable agreements (if any) and exclude digital assets pledged by the Company to suppliers or lenders as collateral (see note 4).

The balance of the Company’s digital assets consisted of the following:

		As of June 30, 2026												As of December 31, 2025
		Quantity				Cost Basis				Fair Value				Quantity				Cost Basis				Fair Value

Bitcoin			1,617				133,431				94,169				1,543				143,237				135,543
USDT			2,394,300				2,394				2,389				3,490,107				3,490				3,487
USDC			320,794				321				321				9,459,635				9,460				9,459
Others			14,870				754				444				41,722				924				800
Total							136,900				97,323								157,111				149,289

The cost basis of digital assets represents the fair value of digital assets at the time of service contract inception, the fair value of digital assets purchased upon receipt in an exchange for another digital assets, and the cost of digital assets purchased upon receipt in an exchange for fiat currency.

The following table presents the movement for digital assets of the Company for the six months ended June 30, 2026 and 2025:

		BTC				USDT and USDC				Others				Total

Balance as of January 1, 2026			135,543				12,946				800				149,289
Digital assets received from customers for products and services			30,264				44,972				2				75,238
Revenue generated from Bitcoin self-mining operation			25,344				-				-				25,344
Converted (to)/from other digital assets or fiat cash, net			(24,740	)			(4,557	)			(4	)			(29,301	)
Costs and expenses (paid)/prepaid in digital assets			(37,606	)			(38,951	)			(44	)			(76,601	)
Changes in fair value of digital assets			(49,218	)			34				(310	)			(49,494	)
Repayment of long-term loans and long-term payables, net			-				(10,600	)			-				(10,600	)
Changes in digital asset collaterals			14,582				-				-				14,582
Proceeds from disposal of equipment			-				36				-				36
Purchase of mining equipment			-				(1,170	)			-				(1,170	)
Balance as of June 30, 2026			94,169				2,710				444				97,323

*

The changes in digital asset collaterals include the fair value changes between the settlement value and original costs of the BTC collaterals

		BTC				USDT				Others				Total

Balance as of January 1, 2025			125,048				4,817				75				129,940
Digital assets received from customers for products and services			116,958				57,505				23				174,486
Revenue generated from Bitcoin self-mining operation			32,357				-				-				32,357
Converted (to)/from other digital assets or fiat cash, net			(69,768	)			3,433				2				(66,333	)
Costs and expenses (paid)/prepaid in digital assets			(70,019	)			(60,815	)			-				(130,834	)
Changes in fair value of digital assets			17,441				66				(7	)			17,500
Digital assets from borrowings			-				5,000				-				5,000
Digital assets pledged to lender or supplier			(31,331	)			-				-				(31,331	)
Digital assets pledged from customers			43,032				-				-				43,032
Purchase of mining equipment			-				(2,457	)			-				(2,457	)
Balance as of June 30, 2025			163,718				7,549				93				171,360

The net income received or to be received by digital assets, as presented in unaudited interim condensed consolidated statement of cash flow, consists of following item (a), (b) and (c).

The following table provides the reconciliation between net income and the movement of digital assets of the Company for the six months ended June 30, 2026 and 2025:

		For the Six Months Ended June 30,
		2026				2025

DIGITAL ASSETS FROM OPERATING ACTIVITIES

Revenue recognized from selling products and services which was settled or will be settled in digital assets (a)			89,296				158,838
Adjusted by the changes of operating assets and liabilities:
Accounts receivable to be settled in digital assets			5,534				(7,663	)
Contract liabilities received in digital assets			(19,592	)			23,311
Digital assets received from customers for products and services			75,238				174,486

Revenue recognized from Bitcoin self-mining operation (b)			25,344				32,357

Cost and expenses settled or to be settled by digital assets (c) ⁽¹⁾			(95,186	)			(98,881	)
Adjusted by the changes of operating assets and liabilities:
Prepayments made in digital assets to suppliers			12,845				(5,720	)
Accounts payable to be settled in digital assets			(1,237	)			(13,986	)
Payments made in digital assets by a related party on behalf of Company			6,150				(11,141	)
Other receivables/payables to be settled in digital assets			827				(1,149	)
Inventories			-				43
Costs and expenses paid in digital assets			(76,601	)			(130,834	)

Changes in fair value of digital assets			(49,494	)			17,500
Net digital assets (used in)/provided by operating activities			(25,513	)			93,509

DIGITAL ASSETS FROM INVESTING ACTIVITIES
Sales of digital assets in exchange for fiat cash			(33,301	)			(76,833	)
Digital assets purchased by fiat cash			4,000				10,500
Changes in digital asset collateral, net			14,582				11,701
Proceeds from disposal of equipment			36				-
Purchase of property and equipment			(1,170	)			(2,457	)
Net digital assets used in investing activities			(15,853	)			(57,089	)

DIGITAL ASSETS FROM FINANCING ACTIVITIES
Repayment of long-term loans			(13,000	)			-
Proceeds from long-term loans			3,400				5,000
Repayment of long-term payables			(1,000	)			-
Net digital assets (used in)/provided by financing activities			(10,600	)			5,000

Net (decrease)/increase in digital assets			(51,966	)			41,420
Digital assets at the beginning of the periods			149,289				129,940
Digital assets at the end of the periods			97,323				171,360

⁽¹⁾

Costs and expenses settled or to be settled by digital assets include interest expense paid in digital assets.