| DIGITAL ASSETS AND DIGITAL ASSETS RECEIVABLES |
| 5. | DIGITAL ASSETS AND DIGITAL ASSETS RECEIVABLES |
The following table summarizes digital assets (in thousands of USD, except units): | | | At June 30, 2026 | | | At December 31, 2025 | | | In thousands of USD | | Units | | | Cost
Basis | | | Fair
Value | | | Units | | | Cost
Basis | | | Fair
Value | | | BTC (Bitcoin) | | | 406 | | | | 33,850 | | | | 24,455 | | | | 741 | | | | 66,926 | | | | 65,546 | | | ETH (Ethereum) | | | 3,080 | | | | 7,201 | | | | 4,962 | | | | 3,043 | | | | 7,116 | | | | 9,038 | | | FIL (Filecoin) | | | 7,447 | | | | 21 | | | | 5 | | | | 7,450 | | | | 21 | | | | 10 | | | USDT (Tether) | | | 5,311,566 | | | | 5,316 | | | | 5,304 | | | | 7,501,927 | | | | 7,492 | | | | 7,494 | | | Other digital assets(1) | | | nm | | | | 49 | | | | 36 | | | | nm | | | | 6,216 | | | | 3,400 | | | Total | | | | | | | 46,437 | | | | 34,762 | | | | | | | | 87,771 | | | | 85,488 | | nm - not meaningful | (1) | Includes various other digital assets, none of which individually represented more than 5% of the fair value of total digital assets. | The following table provides a reconciliation of digital assets: | | | Six months ended
June 30, | | | In thousands of USD | | 2026 | | | 2025 | | | Beginning balance | | | 85,488 | | | | 93,671 | | | Additions(1) | | | 1,262,101 | | | | 210,127 | | | Dispositions(2) | | | (1,284,199 | ) | | | (118,124 | ) | | Gains(3) | | | * | | | | 24,411 | | | Losses(3) | | | (28,628 | ) | | | (5,013 | ) | | Ending balance | | | 34,762 | | | | 205,072 | | | * | Amount less than US$1,000 | | (1) | Additions arise mainly from the Group’s ordinary operating activities, particularly digital asset self-mining and receipt of digital assets from customers as payment for mining-related services. Additions are also inclusive of refund of pledged collateral from a related party of US$314.7 million. | | (2) | Dispositions arise from sales for fiat currency and the use of digital assets to settle operating obligations. Dispositions are also inclusive of transactions with a related party, comprising digital assets transferred as pledged collateral of US$357.6 million and digital assets of US$6.4 million used to pay the premium on put option transactions. Refer to Note 20. | | (3) | The Group measures gains and losses by each asset held. These amounts include cumulative realized losses of US$19.2 million and gains of $0.2 million, and unrealized losses of US$9.4 million and gains of US$19.2 million, during the six months ended June 30, 2026 and 2025, respectively. | Digital assets – receivables As of June 30, 2026, the Group has pledged approximately 162.4 million USDT (US$162.2 million fair value equivalent) to BIT Group, a related party in connection with borrowings facility drawdowns. The receivable balance carried a fair value of US$162.2 million, consisting principal amount of US$162.4 million and embedded derivative liability of US$0.2 million. Refer to Note 20 for more details. The details of digital assets – receivables are as follows: | | | Six months ended
June 30, | | | In thousands of USD | | 2026 | | | 2025 | | | Beginning balances | | | 135,558 | | | | - | | | Transfer from digital assets | | | 357,600 | | | | - | | | Refund of collateral from a related party | | | (314,680 | ) | | | - | | | Net fair value changes recognized in net income | | | (16,307 | ) | | | - | | | Ending balances | | | 162,171 | | | | - | |
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