Digital Assets

9 Months Ended

Sep. 30, 2026

Digital Assets

Note 11. Digital Assets

Digital assets — AVAX

The following table summarizes the Company’s total digital assets — AVAX holdings, as shown on the accompanying balance sheet as of September 30, 2026 and December 31, 2025:

The cost basis for the AVAX represents the cost at the time the Company received or purchased the AVAX.



		September 30, 2026
Asset		Tokens			Cost basis			Fair value
AVAX			13,312,754		$	217,552,322		$	145,488,349


		December 31, 2025
Asset		Tokens			Cost basis			Fair value
AVAX			13,579,449		$	263,431,911		$	167,093,560

As of September 30, 2026, the Company’s AVAX holdings were classified as follows:



AVAX		Fair value as of
tokens		September 30, 2026			Classification
1,609,888		$	17,593,657		Current – unrestricted AVAX that management expects to sell within the next twelve months (see Note 2)
3,424,870			37,428,616		Noncurrent – unrestricted AVAX not subject to lock-up restrictions or pledged as collateral
3,010,907			32,904,694		Noncurrent – pledged as collateral under the July 2026 Collateralized Term Loan (see Note 7)
5,267,089			57,561,382		Noncurrent – subject to contractual lock-up restrictions (see Note 4)
13,312,754		$	145,488,349

The following table presents a roll forward of the Company’s AVAX as of September 30, 2026:


		Amount
AVAX as of December 31, 2025		$	167,093,560
Partial contribution from Subscription agreements			699,797
Digital assets received from staking rewards			3,436,168
Fees paid in AVAX			(126,001)
Deposits of AVAX staked into liquid staking activities			(27,511,488)
Receipt of AVAX from redemption in liquid staking activities - sAVAX			18,985,510
Receipt of AVAX from redemption in liquid staking activities - stAVAX			11,569,313
Receipt of AVAX from redemption in liquid staking activities - sAVAX (rewards)			250,294
Receipt of AVAX from redemption in liquid staking activities - stAVAX (rewards)			660,693
Sales of AVAX			(15,291,527)
Realized loss on digital assets			(38,699,853)
Change in fair value of digital assets			24,421,883
AVAX at fair value as of September 30, 2026		$	145,488,349

Sales of AVAX to the Foundation

During the three months ended September 30, 2026, the Company sold 2,082,371 AVAX tokens to the Foundation in three privately negotiated tranches on August 21, August 27 and September 24, 2026, for aggregate proceeds of $15,000,000, consisting of $10,000,000 in cash and $5,000,000 in USDC. The price for each tranche was set at a 10% discount to the reference price of AVAX for that tranche, which was the average of the daily closing prices of AVAX over a five-day period preceding the effective date of the applicable token sale agreement. The AVAX sold were tokens acquired from the Foundation under the TSA that were subject to the lock-up described in Note 4; for each sale, the Foundation provided a limited consent waiving the lock-up for the tokens sold, and the tokens sold reduced the lock-up releases scheduled for the final months of the lock-up period. The cash proceeds from the first two tranches were used, together with other available funds, to repay the FalconX Credit Facility (see Note 7). The third tranche closed on September 24, 2026, and its proceeds of $5,000,000 were received in USDC. The Company also sold 32,500 AVAX in the open market on September 22, 2026 for cash proceeds of $291,527.

The Company recognized a realized loss of $25,210,596 on the sales of AVAX to the Foundation, measured as the difference between the proceeds of $15,000,000 and the cost basis of the AVAX sold of $40,210,596, determined using specific identification, which is included in realized loss on digital assets. Upon the sales, the Company also reversed $23,238,468 of cumulative unrealized losses previously recognized on those tokens, a portion of which was recognized during the year ended December 31, 2025; the reversal is included in change in fair value of digital assets.

Digital assets — stAVAX

The following table presents a roll forward of the Company’s stAVAX as of September 30, 2026:


		Amount
Balance at December 31, 2025		$	15,246,914
Disposal of stAVAX			(11,569,313)
Impairment loss on stAVAX tokens			(5,487,722)
Gain on redemption in liquid staking activities - stAVAX			1,810,121
Balance at September 30, 2026		$	—

As of September 30, 2026 the Company did not hold any stAVAX.

Digital assets — sAVAX

The following table presents a roll forward of the Company’s sAVAX as of September 30, 2026:


		Amount
Balance at December 31, 2025		$	—
sAVAX received for AVAX staked			27,511,488
Disposal of sAVAX			(18,985,510)
Impairment loss on sAVAX tokens			(10,672,560)
Gain on redemption in liquid staking activities - sAVAX			2,146,582
Balance at September 30, 2026		$	—

As of September 30, 2026 the Company did not hold any sAVAX.