v3.26.3
DERIVATIVES
 9 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES
NOTE 9—DERIVATIVES
The table below presents our significant derivative assets and liabilities as shown on our Condensed Consolidated Balance Sheets:
(in thousands)September 30, 2026
ClassificationAssetsLiabilities
Derivatives not designated as hedges:
Digital assets pledged as collateralDigital assets pledged as collateral$225,933 $— 
Digital asset financing arrangementsDigital asset financing arrangements— 225,933 
Total$225,933 $225,933 
(in thousands)December 31, 2025
ClassificationAssetsLiabilities
Derivatives not designated as hedges:
Digital assets pledged as collateralDigital assets pledged as collateral$103,943 $— 
Digital asset financing arrangementsDigital asset financing arrangements— 67,521 
Accrued crypto loan borrowing feesAccounts payable and accrued expenses— 256 
Total$103,943 $67,777 
The table below presents the effect of derivative instruments, included within Gain (loss) from derivative instruments as stated on our Condensed Consolidated Statements of Operations:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2026202520262025
Digital assets pledged as collateral$88,343 $8,452 $35,059 $8,452 
Digital asset financing arrangements(54,901)(3,814)(24,533)(3,814)
Other(42)1 61 1 
Total$33,400 $4,639 $10,587 $4,639 
DIGITAL ASSET FINANCING ARRANGEMENTS
Term Loans
On July 25, 2025, we entered into a master loan agreement under which we may borrow digital assets or cash. Each loan is documented in a separate loan request which sets forth the specific terms, including principal amount, fees, collateral requirements, and the date on which the loan is to commence and mature. The terms of the master loan agreement last one year and automatically renew for successive one year terms annually, unless terminated by either party. We primarily use the proceeds from loan requests for SOL decentralized finance (“DeFi”) activities.
During the third quarter 2026, we repaid $12.4 million (using exchange rates as of the date the SOL was repaid). As of September 30, 2026, there were no loan requests outstanding under the master loan agreement.
Open-Term Loans
On February 23, 2026, we entered into a loan request under the previously mentioned master loan agreement, where we borrowed $4.0 million USD Coin ("USDC"). The loan has no maturity date and the lender is able to request repayment at
any time, at which point we have one business day to settle the loan. Conversely, we can settle the loan at any time without penalties. During the third quarter 2026, we repaid the loan in full.
As of September 30, 2026, there were no digital asset term loans outstanding. During the three and nine months ended September 30, 2026, total borrowing fees recognized within Interest expense, as stated on our Condensed Consolidated Statements of Operations, was $0.3 million and $1.1 million, respectively.
Collateralized Financing Arrangements
We enter into digital asset financing arrangements through DeFi protocols that allow digital assets to be deposited as collateral in order to obtain borrowings of additional digital assets. We may redeposit these borrowed assets into lending protocols and subsequently borrow additional assets against those deposits. This strategy is intended to increase our exposure to staking rewards, lending yields and other protocol incentives. The borrowed digital assets do not have a specified maturity date and are repayable at our option at any time. The interest rate on these borrowings are established by each DeFi protocol and are variable. The interest rate is determined based on the borrow demand for each digital asset on the DeFi protocol. Interest is calculated daily and payable on the date repayment is made. We do not have an explicit right of offset under the terms of the collateralized financing arrangements and present the associated liabilities and assets on a gross basis. Through the third quarter 2026, we received proceeds of $215.8 million (using exchange rates as of the date the digital assets were borrowed) and repaid a total of $68.6 million (using exchange rates as of the date the digital assets were repaid). We used the proceeds from these collateralized financing arrangements for SOL DeFi activities.
We derecognize the digital assets provided as collateral related to these borrowings and record an asset on our Condensed Consolidated Balance Sheets. As of September 30, 2026, we had approximately $225.9 million of posted collateral relating to our collateralized financing arrangements, which is recorded within Digital assets pledged as collateral as stated on our Condensed Consolidated Balance Sheets. Our net economic impact related to our collateralized financing arrangements was zero as the outstanding balance and related collateral are the same amount. During the three and nine months ended September 30, 2026, total borrowing fees recognized within Interest expense, as stated on our Condensed Consolidated Statements of Operations, was $1.0 million and $2.2 million, respectively.
The table below shows our outstanding collateralized financing arrangements in our Condensed Consolidated Balance Sheets:
(in thousands)September 30, 2026December 31, 2025
Solana (SOL)$189,856 $29,315 
PayPal USD (PYUSD)11,865 12,062 
Other(a)
24,212 5,598 
Total$225,933 $46,975 
(a) No other digital asset or stablecoin accounted for 10% or more of total collateralized financing arrangements.