6. BITCOIN

12 Months Ended

Sep. 30, 2024

6. BITCOIN

As of September 30, 2024 and 2023, the Company held 6,819 and 2,243 bitcoin, respectively. The following table presents a description of the Company's bitcoin holdings as of September 30, 2024 and 2023:


	As of
Bitcoin holdings	September 30, 2024		September 30, 2023
Number of bitcoin held		6,819		2,243
Cost basis - per bitcoin	$	55,408	$	25,074
Fair value - per bitcoin	$	63,301	$	26,961
Cost basis of bitcoin (in '000s)	$	377,839	$	56,241
Fair value of bitcoin (in '000s)	$	431,661	$	60,424

The cost basis represents the valuation of bitcoin at the time the Company earns the bitcoin through mining activities. The cost basis for 2,243 bitcoin held as of the date prior to the adoption of ASC 350-60 was determined on the "cost less impairment" basis.

The following table presents information based on the activity of bitcoin for the years ended September 30, 2024 and 2023:



	For the year ended September 30,
($ in thousands)	2024			2023
Balance at beginning of the year	$	56,241		$	11,147
Cumulative effect of the adoption of ASC 350-60		4,183			—
Adjusted beginning balance - at fair value	$	60,424		$	11,147
Addition of bitcoin from mining activities(1)		378,968			168,121
Bitcoin sold & issued for services and purchase of software		(44,801	)		(115,864	)
Bitcoin transferred to collateral account		(87,895	)		—
Bitcoin received from collateral account		11,542			—
Impairment loss		—			(7,163	)
Gain on fair value of bitcoin, net		113,423			—
Balance at end of the year	$	431,661		$	56,241

(1) Net of mining pool fees as described in Note 2 - Summary of Significant Accounting Policies

The Company's bitcoin holdings shown in this note, excluding the bitcoin posted as collateral to the Coinbase Line of Credit as described in Note 12 - Loans, are not subject to rehypothecation and do not serve as collateral for any existing loans or agreements. As of September 30, 2024, the Company held approximately 99% of its bitcoin in cold storage and 1% in hot wallets.

The cumulative realized gains from dispositions of bitcoin during the year ended September 30, 2024 was $63,878. There were no cumulative realized losses from dispositions of bitcoin during the year ended September 30, 2024.