v3.26.3
FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
NOTE 15—FAIR VALUE MEASUREMENTS
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS
The Company’s significant financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows:
September 30, 2026
Fair Value
(in thousands)Carrying ValueLevel 1Level 2Level 3Total
Assets:
Digital assets, at fair value$117,727 $23,129 $94,598 $— $117,727 
Digital assets pledged as collateral225,933 45,446 180,487 — 225,933 
Stablecoins(a)
9,597 9,597 — — 9,597 
Marketable securities(b)
631 631 — — 631 
Total assets$353,888 $78,803 $275,085 $— $353,888 
Liabilities:
Digital asset financing arrangements$225,933 $225,933 $— $— $225,933 
Total liabilities$225,933 $225,933 $— $— $225,933 
(a) Amounts are included within Other current assets as stated on our Condensed Consolidated Balance Sheets.
(b) Amounts are included within Investments as stated on our Condensed Consolidated Balance Sheets.
December 31, 2025
Fair Value
(in thousands)Carrying ValueLevel 1Level 2Level 3Total
Assets:
Digital assets, at fair value$136,000 $30,156 $105,844 $— $136,000 
Digital assets pledged as collateral103,943 56,968 46,975 — 103,943 
Stablecoins(a)
522 522 — — 522 
Debt securities(b)
841 841 — — 841 
Marketable securities(b)
698 698 — — 698 
Total$242,004 $89,185 $152,819 $— $242,004 
Liabilities:
Digital asset financing arrangements$67,521 $67,521 $— $— $67,521 
Accrued crypto loan borrowing fees(c)
256 256 — — 256 
Total$67,777 $67,777 $— $— $67,777 
(a) Amounts are included within Other current assets as stated on our Condensed Consolidated Balance Sheets.
(b) Amounts are included within Investments as stated on our Condensed Consolidated Balance Sheets.
(c) Amounts are included within Accounts payable and accrued expenses as stated on our Condensed Consolidated Balance Sheets.
Financial assets and liabilities classified within Level 1 are valued using unadjusted quoted prices for identical assets and liabilities in active markets. There are no active markets for our locked SOL holdings. Accordingly, we have valued the locked SOL holdings using unadjusted quoted price on the active market we identified as the principal market, and adjusted for Level 2 inputs, which incorporate observable market transactions executed by public companies comparable to our Digital Asset Treasury segment and those transactions entered into by us.
Our derivative instruments are primarily comprised of digital asset financing arrangements and digital assets pledged as collateral for those financing arrangements and are valued based on the underlying digital asset. Derivative instruments that are classified within Level 1 are valued using unadjusted quoted prices on the active exchange that we have identified as the principal market for the underlying digital asset. For derivative instruments classified within Level 2 we determine the value using quoted prices for identical tokens in markets that are not active.
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A NONRECURRING BASIS
In addition to assets and liabilities that are recorded at fair value on a recurring basis, under the framework of ASC 820, we are also required to record assets and liabilities at fair value on a nonrecurring basis for items such as acquisitions and impairment testing on intangible assets.
Impairments
For the three and nine months ended September 30, 2026, we recognized impairment charges of $0.7 million and $21.4 million, respectively, on our digital assets, at carrying value due to the weakening of our liquid staking tokens against the U.S. dollar.
Warrant Dividend
In connection with the issuance of our convertible notes, we determined the fair value of the warrant dividend issued to our convertible note warrant holders to be $124.5 thousand in total, representing $1.63 and $1.51 price per warrant for the first and second series, respectively. The fair value was determined using the Black-Scholes Option model, which utilizes significant inputs, or Level 3 inputs, as defined by the fair value hierarchy. See Note 11—Stockholders’ Equity for further discussion.
The table below shows the inputs used for the valuation of warrant dividends issued during the first quarter 2026:
Stock price$3.29 
Strike price, series 1$17.14 
Strike price, series 2$21.43 
Dividend— %
Risk free rate3.9 %
Term4.02
Volatility110.0 %
OTHER FINANCIAL INSTRUMENTS
The carrying value of our cash and cash equivalents, receivables and accounts payable approximates fair value as of September 30, 2026 and December 31, 2025, respectively, due to the short-term nature of these instruments.