BITCOIN

9 Months Ended

Sep. 30, 2024

The following table presents information about the Company’s bitcoin (in thousands):


	For the Nine Months Ended September 30,
	2024		2023
Opening balance	$	32,978	$	6,283
Cumulative effect upon adoption of ASU 2023-08	-		209
Bitcoin received from equity investees	10,487		317
Bitcoin received from mining activities	109,443		83,162
Proceeds from sale of bitcoin	(79,785)		(78,729)
Realized gains on sale of bitcoin	25,114		1,739
Unrealized gains (losses) on sale of bitcoin	(2,778)		1,538
Ending balance	$	95,459	$	14,519

The Company held approximately 1,508 and 780 bitcoin at September 30, 2024, and December 31, 2023, respectively. The associated fair value and cost basis of bitcoin held was $95.5 million, and $96.2 million, respectively, at September 30, 2024, and $33.0 million, and $30.9 million, respectively at December 31, 2023. Fair value of bitcoin is estimated using the closing price, which is a Level 1 input (i.e., an observable input such as a quoted price in an active market for an identical asset). The Company accounts for bitcoin on a first-in-first-out (“FIFO”) basis.

As of September 30, 2024, 30 bitcoin with a fair value of $1.9 million were pledged as collateral related to short-term bitcoin price protection collars. Restrictions on this bitcoin pledged as collateral will lapse in the fourth quarter of 2024. As of December 31, 2023, 10 bitcoin with a fair value of $0.4 million were pledged as collateral. Restrictions on that collateral lapsed on January 26, 2024.