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Investments

6 Months Ended

Jun. 30, 2025

Note 6. Investments

Equity method investment - marketable securities

During the year ended December 31, 2024, the Company acquired approximately 90.1 million common shares of Bitfarms Ltd. (“Bitfarms”) on the open market for approximately $203.8 million. During the three months ended June 30, 2025, the Company sold approximately 16.1 million common shares of Bitfarms on the open market for net proceeds of approximately $14.7 million.

As of June 30, 2025, the Company’s investment in Bitfarms was equal to approximately 13.3% of all outstanding Bitfarms common stock.

The following table presents information about the equity method investment - marketable securities (“marketable securities”):


Fair value as of January 1, 2025	$	134,265
Net losses on marketable securities		(57,095)
Sales of marketable securities		(14,662)
Fair value as of June 30, 2025	$	62,508

The following table presents information regarding the net gains and losses associated with the sales of marketable securities:


	Three Months Ended		Six Months Ended
	June 30, 2025		June 30, 2025
Net gain/(loss) on marketable securities	$	6,143	$	(57,095)
Less: Net gain/(loss) recognized on marketable securities sold during the period	$	(9,119)	$	2,129
Net gain/(loss) recognized on marketable securities held as of June 30, 2025	$	15,262	$	(59,224)

In July 2025, the Company sold approximately 30.6 million common shares of Bitfarms on the open market for net proceeds of approximately $32.6 million. As a result, as of July 29, 2025, the Company’s investment in Bitfarms was equal to approximately 7.8% of all outstanding Bitfarms common stock.

Convertible note

During the year ended December 31, 2023, the Company invested in a $4.5 million convertible note at face value. The convertible note has a three-year term and earns interest at a rate of 12.0% per annum, which may be paid in cash or in-kind, and converts into equity of the issuer of the convertible note at the end of the three-year term.

The fair value measurement of the convertible note is based on significant inputs not observable in the market and thus represents a Level 3 measurement on the fair value hierarchy. The significant assumptions used to estimate fair value of the convertible note as of June 30, 2025, primarily consisted of a discount rate of 13.0%, which reflected the issuance date spread premium over the selected yield for the remaining time to maturity.

The following table presents information about the convertible note:


Fair value as of January 1, 2025	$	5,345
Accrued interest		305
Amortized costs basis		5,650
Unrealized holding gains (losses) in accumulated other comprehensive income		(27)
Fair value as of June 30, 2025	$	5,623

For the three months ended June 30, 2025, unrealized holding losses in accumulated other comprehensive income were $0.1 million.