DIGITAL ASSETS

12 Months Ended

Dec. 31, 2024

Effective January 1, 2023, the Company early adopted ASU 2023-08, which requires entities to measure crypto assets at fair value with changes recognized in the Consolidated Statements of Operations each reporting period. The Company’s digital assets were within the scope of ASU 2023-08 and a cumulative-effect adjustment of $11.5 million as of the beginning of the fiscal year ended December 31, 2023 was recorded for the difference between the carrying amount of the Company’s digital assets and fair value.

The following table presents the Company’s significant digital asset holdings as of December 31, 2024 and 2023, respectively:


(in thousands, except for quantity)	Quantity	Cost Basis		Fair Value
Bitcoin	34,519	$	2,415,963	$	3,223,989
Bitcoin - receivable (1)	10,374	401,334		968,436
Total bitcoin holdings	44,893	2,817,297		4,192,425

Kaspa	34,817,098	5,624		4,327
Total digital assets held as of December 31, 2024		$	2,822,921	$	4,196,752


(in thousands, except for quantity)	Quantity	Cost Basis		Fair Value
Bitcoin	15,126	$	515,315	$	639,660
Total digital assets held as of December 31, 2023		$	515,315	$	639,660

(1) The Company’s bitcoin - receivable holdings include 7,377 bitcoin lent out in digital asset loan receivable transactions and 2,997 bitcoin pledged as collateral. Refer to Note 6 - Digital Assets - Receivable, Net and Note 17 - Debt, for further information.

The Company earned 51 and 48 bitcoin that were pending distribution from the Company’s equity method investee, the ADGM Entity (as defined below), which are excluded from the Company’s holdings as of December 31, 2024 and 2023, respectively.

The following table presents a roll-forward of the Company’s digital asset holdings during the years ended December 31, 2024 and 2023:


(in thousands)	Bitcoin Fair Value		KASPA Fair Value
Digital assets and digital assets, restricted at December 31, 2022	$	190,717	$	—


Cumulative effect of the adoption of ASU 2023-08	11,483		—
Additions of digital assets:
Mining	385,959		—


Disposition of digital assets	(264,945)		—

Realized gain on digital assets	28,738		—
Unrealized gain on digital assets	287,708		—
Digital assets at December 31, 2023	639,660		—
Additions of digital assets:
Mining	599,436		23,026
Purchases	1,943,882		2,978
Dividends from equity method investee	25,299		—
Disposition of digital assets	(133,165)		(19,125)
Realized gain (loss) on digital assets (1)	616,042		(1,255)
Unrealized gain on (loss) digital assets	200,324		(1,297)
Other	1,151		—

Transferred to Digital assets - receivable, net	(668,640)		—
Digital assets at December 31, 2024	$	3,223,989	$	4,327

(1) Realized gains (losses) result from digital asset dispositions and upon the lending or pledging of bitcoin as collateral.

The following tables summarizes the source of funds for the Company’s bitcoin purchases during the year ended December 31, 2024:


(in thousands, except for quantity)	Quantity	Approximate Value
Cash on hand	2,347	$	160,356
Net proceeds from the issuance of the September 2031 Notes (1)	4,144	249,000
Net proceeds from the issuance of the March 2030 Notes (1)	9,074	872,353
Net proceeds from the issuance of the June 2031 Notes (1)	6,500	662,173
Total purchases	22,065	$	1,943,882

(1) Defined below. Refer to Note 17 - Debt, for further information.