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Income Taxes
 9 Months Ended
Sep. 30, 2026
Income Taxes [Abstract]  
INCOME TAXES

17. INCOME TAXES

 

The following table provides details of income taxes:

 

    For the Three Months Ended
September 30,		     For the Nine Months Ended
September 30,		  
    2026     2025     2026     2025  
                         
Income (loss) before income taxes   $ 1,944     $ 147,423     $ (261,037 )   $ 106,848  
Provision for income taxes   $ 1,344     $ 698     $ 306     $ 2,961  
Effective tax rate     69.2 %     0.5 %     (0.1 )%     2.8 %

 

The effective tax rate was 69.2% and 0.5% for the three months ended September 30, 2026 and 2025, respectively, and (0.1)% and 2.8% for the nine months ended September 30, 2026 and 2025, respectively. The lower effective tax rates for the nine month period primarily due to geographic mix earning impacts and Net CFC Tested Income or NCTI (a.k.a GILTI) impact. The higher effective tax rates for the three month period primarily due to geographic mix earning impacts and digital assets’ fair market value measurement in Singapore. As of September 30, 2026, we were unable to recognize a tax benefit on the current nine months period as a result of the valuation allowance maintained against certain foreign operations.

 

Numerous foreign jurisdictions have enacted legislation to adopt a minimum effective tax rate described in the Global Anti-Base Erosion, or Pillar Two, model rules issued by the Organization for Economic Co-operation and Development (“OECD”). Under such rules, a minimum effective tax rate of 15% applies to multinational companies with consolidated revenue above €750 million. Under the Pillar Two rules, a company is required to determine a combined effective tax rate for all entities located in a jurisdiction. If the jurisdictional effective tax rate determined under the Pillar Two rules is less than 15%, a top-up tax will be due to bring the jurisdictional effective tax rate up to 15%. We are continuing to monitor Pillar Two legislative developments and the effects of Pillar Two on our business.

 

On January 5, 2026, the OECD released comprehensive administrative guidance on the “side-by-side system” to streamline Pillar Two’s global minimum tax rules, which would exclude U.S. parented groups from certain Pillar Two provisions in recognition of existing U.S. minimum tax rules. The side-by-side safe harbor election will be effective beginning in 2026, once adopted into domestic legislation, with the transitional safe harbor extended through 2027 to facilitate the implementation of this permanent system. Overall, the rules are not expected to have a material adverse impact on our results of operations, financial position, or cash flows. On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the U.S., which contains a broad range of tax reform provisions affecting businesses. The legislation did not have a material impact on our financial statements.