v3.26.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2026
Fair Value Measurements  
Fair Value Measurements

Note 9. Fair Value Measurements

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of September 30, 2026 and December 31, 2025:

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​

​

​

​

​

​

​

​

​

​

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Fair value measured at September 30, 2026

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​

Total carrying

​

Quoted prices in

​

Significant other

​

Significant

​

​

value at

​

active markets

​

observable inputs

​

unobservable

​

  ​ ​ ​

September 30, 2026

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

inputs (Level 3)

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

Digital assets - AVAX

​

$

145,488,349

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$

145,488,349

​

$

—

​

$

—

USDC

​

 

1,011,949

​

 

1,011,949

​

 

—

​

 

—

Total assets

​

$

146,500,298

​

$

146,500,298

​

$

—

​

$

—

Liabilities:

​

 

​

​

 

  ​

​

 

  ​

​

 

  ​

Earn out liability

​

$

2,882,667

​

$

—

​

$

—

​

$

2,882,667

​

​

​

Fair value measured at December 31, 2025

​

​

Total carrying

​

Quoted prices in

​

Significant other

​

Significant

​

​

value at

​

active markets

​

observable inputs

​

unobservable

​

  ​ ​ ​

December 31, 2025

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

inputs (Level 3)

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

Digital assets - AVAX

​

$

167,093,560

​

$

167,093,560

​

$

—

​

$

—

USDC

​

 

3,373,564

​

 

3,373,564

​

 

—

​

 

—

Total assets

​

$

170,467,124

​

$

170,467,124

​

$

—

​

$

—

Liabilities:

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

Token sale liability

​

$

40,010,988

​

$

—

​

$

40,010,988

​

$

—

​

AVAX and USDC

In determining the value of its AVAX and USDC investments, the Company uses quoted prices as determined by utilizing Coinbase closing prices at 12:00 AM UTC.

Token Sale Liability

In determining the fair value of the token sale liability, the Company used quoted prices as determined by utilizing Coinbase closing prices at 12:00 AM UTC, net of cash received.

stAVAX and sAVAX

Certain assets are measured at fair value on a nonrecurring basis when events or changes in circumstances indicate that the carrying amount may not be recoverable. As of September 30, 2026 and December 31, 2025 the Company recognized impairment charges related to its stAVAX and sAVAX, which are accounted for as indefinite-lived intangible assets.

For the three and nine months ended September 30, 2026, the Company recognized impairment losses of $— and $5.5 million, respectively, related to its stAVAX due to declining market values of AVAX. Fair value was determined using the quoted price of AVAX because stAVAX does not have a directly observable quoted price in an active market.

For the three and nine months ended September 30, 2026, the Company recognized impairment losses of $— and $10.7 million, respectively, related to its sAVAX due to declining market values of AVAX. Fair value was determined using the quoted price of AVAX because sAVAX does not have a directly observable quoted price in an active market.

Earn-out liability

As of September 30, 2026, the Company measured the earn-out liability using a Monte Carlo simulation based on a Geometric Brownian Motion in a risk-neutral framework.

Significant unobservable inputs used in the valuation as of September 30, 2026 included the following:

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Unobservable Input

Value / Range

Expected volatility

80.0% – 85.0%

Risk-free interest rate

4.90% – 5.01%

Expected term

2.7- 4.7 years

Stock price

$1.83

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Post Share Issuance Liability

In determining the fair value of the post share issuance liability, the Company used quoted prices as determined by utilizing closing share price of the Company’s Class A Common Stock.