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Derivatives (Tables)
 9 Months Ended
Sep. 30, 2025
Derivative [Line Items]  
Schedule of Combined Balance Sheets Classification of Derivatives Carried at Fair Value

The following table presents the Company’s Unaudited Condensed and Combined Balance Sheets classification of derivatives carried at fair value:

 

(in USD thousands)

 

 

 

September 30, 2025

 

 

December 31, 2024

 

Derivative

 

Balance Sheet Line

 

Asset

 

 

Liability

 

 

Asset

 

 

Liability

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bitcoin redemption option

 

Derivative asset

 

$

63,723

 

 

$

—

 

 

$

18,076

 

 

$

—

 

Covered call options

 

Derivative liability

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,437

 

Warrant liability

 

Warrant liability

 

 

—

 

 

 

571

 

 

 

—

 

 

 

—

 

Total derivatives

 

 

 

$

63,723

 

 

$

571

 

 

$

18,076

 

 

$

18,437

 
Schedule of Effect of Derivatives on Statements of Operations and Comprehensive Income (Loss)

The following table presents the effect of derivatives on the Company’s Unaudited Condensed and Combined Statements of Operations and Comprehensive Income (Loss):

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in USD thousands)

 

Statement of

 

September 30,

 

 

September 30,

 

Derivative

 

Operations Line

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bitcoin redemption option

 

(Loss) gain on derivatives

 

$

(1,999

)

 

$

—

 

 

$

18,863

 

 

$

—

 

Covered call options

 

(Loss) gain on derivatives

 

 

—

 

 

 

2,704

 

 

 

—

 

 

 

19,923

 

Warrant liability

 

Gain on warrant liability

 

 

—

 

 

 

—

 

 

 

26

 

 

 

—

 

Total derivatives

 

 

 

$

(1,999

)

 

$

2,704

 

 

$

18,889

 

 

$

19,923

 
Schedule of Activity and Change in Fair Value of Bitcoin Redemption Option Related to Parent

The following table provides a summary of activity and change in fair value of the Bitcoin redemption option related to the Parent Bitmain Purchase Agreement (previously a Level 3 derivative asset):

 

 

Nine Months Ended

 

(in USD thousands)

 

September 30, 2025

 

Balance, beginning of period

 

$

18,076

 

Transfer out of Level 3 (1)

 

 

(18,076

)

Balance, end of period

 

$

—

 

 

(1) The Bitcoin redemption option was transferred out of Level 3 due to changes in the observability of inputs used in the valuation and retained by the Parent after the effectiveness of Transactions.
Warrant [Member]  
Derivative [Line Items]  
Schedule of Valuation Inputs for Derivatives

As of September 30, 2025, the Company estimated the fair value of the warrant liability using the Black-Scholes pricing model with the following inputs:

 

 

 

September 30, 2025

 

Exercise price

 

$

1.50

 

Expected volatility

 

 

122.2

%

Risk-free interest rate

 

4.02% – 4.10%

 

Expected term

 

 

0.25

 

Dividend yield

 

 

0

%
Summary of Activity and Change in Fair Value

The following table provides a summary of activity and change in fair value of the Company’s warrant liability (Level 3 derivative liability), and there was no activity during the three months and nine months ended September 30, 2024:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

(in USD thousands)

 

2025

 

 

2025

 

Balance, beginning of period

 

$

—

 

 

$

—

 

Warrants assumed in Business Combination

 

 

9,011

 

 

 

9,011

 

Exercise of warrants

 

 

(8,414

)

 

 

(8,414

)

Change in fair value

 

 

(26

)

 

 

(26

)

Balance, end of period

 

$

571

 

 

$

571