4. BITCOIN

9 Months Ended

Jun. 30, 2025

4. BITCOIN

The following table presents the Company's bitcoin holdings as of June 30, 2025 and September 30, 2024:


	As of
Bitcoin holdings	June 30, 2025		September 30, 2024
Number of bitcoin held		10,075		6,819
Cost basis - per bitcoin	$	94,058	$	55,408
Fair value - per bitcoin	$	107,173	$	63,301
Cost basis of bitcoin (in '000s)	$	947,625	$	377,839
Fair value of bitcoin (in '000s)	$	1,079,754	$	431,661

The cost basis represents the valuation of bitcoin at the time the Company earns the bitcoin through mining activities.

The following table presents information based on the activity of bitcoin for the three and nine months ended June 30, 2025 and 2024:


	Three months ended						Nine months ended
($ in thousands)	June 30, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Beginning Balance - before cumulative effect change	$	979,635		$	357,981		$	431,661		$	56,241
Cumulative effect of the adoption of ASC 350-60		—			—			—			4,183
Adjusted beginning balance after cumulative effect change	$	979,635		$	357,981		$	431,661		$	60,424
Addition of bitcoin from mining activities(1)		198,644			104,108			542,662			289,693
Bitcoin purchased		82,152			—			82,152			—
Bitcoin sold		(127,829	)		—			(127,829	)		—
Bitcoin issued for services and other non-cash consideration		(81,360	)		(718	)		(88,263	)		(44,490	)
Bitcoin transferred to collateral account		(282,418	)		—			(291,278	)		—
Bitcoin received from collateral account		42,279			—			171,459			—
(Gain) loss on fair value of bitcoin		268,651			(48,338	)		359,190			107,406
Ending Balance(2)	$	1,079,754		$	413,033		$	1,079,754		$	413,033

(1) Net of mining pool fees.

(2) Includes Bitcoin - current of $877,067 and Bitcoin - noncurrent of $202,687 as presented within condensed consolidated balance sheets as of June 30, 2025.

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 9 - Loans, are not subject to rehypothecation and do not serve as collateral for any existing loans or agreements. As of June 30, 2025, the Company held no other crypto assets; approximately 99% of its bitcoin is held in cold storage and 1% is held in hot wallets.

The Company recognized cumulative realized gains from dispositions of bitcoin of $218,148 and $443 during the three months ended June 30, 2025 and 2024, respectively. For the nine months ended June 30, 2025 and 2024, cumulative realized gains totaled $227,061 and $12,862, respectively. There were no cumulative realized losses from dispositions of bitcoin during the three and nine months ended June 30, 2025 and 2024.

As of June 30, 2025, the Company has a receivable from bitcoin collateral of $271,491. For the three months ended June 30, 2025 a realized gain of $31,354 was recognized on the collateral, and for the nine months ended June 30, 2025 a realized gain of $73,847. There were no gains or losses on receivable from bitcoin collateral in the nine months ended June 30, 2024. Additionally, for the nine months ended June 30, 2025 and 2024, no amount of allowances for credit losses were deemed necessary.