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Digital Asset Holdings
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Digital Asset Holdings

Note 2 – Digital Asset Holdings

 

Crypto Assets

 

The following table sets forth the units held, cost basis, and fair value of crypto assets held, as shown on the consolidated balance sheet as of June 30, 2025:

 

   Units   Cost Basis   Fair Value 
Balance, June 30, 2025               
ETH   24,704   $63,899,229   $61,462,203 
Total   24,704   $63,899,229   $61,462,203 

 

Cost basis is equal to the cost of the crypto assets net of any transaction fees, if any, at the time of purchase or upon receipt. Fair value represents the quoted crypto asset prices within the Company’s principal market at the time of measurement (midnight UTC).

 

As of December 31, 2024 and March 31, 2025, the Company did not hold any crypto assets.

 

The following table represents a reconciliation of crypto assets held:

 

   For the Three and
Six Months Ended
June 30, 2025		 
     
Fair Value, December 31, 2024 

$

- 
Fair Value, March 31, 2025   - 
Additions   529,214,163 
Deposits of ETH into liquid staking activities   (465,343,468)
Receipt and accrual of ETH from native staking activities   28,534 
Unrealized loss   (2,437,026)
Fair Value, June 30, 2025 

$

61,462,203 

 

Additions are the result of purchases and receipts of ETH in connection with the PIPE, see Note 1- Basis of Presentation. The receipts of ETH from native staking represent the rewards earned from native staking. During the three and six months ended June 30, 2025, the Company recognized cumulative realized gains of $9.8 million, and cumulative realized losses of $4.4 million upon the deposit of ETH into liquid staking.

 

Digital Intangible Assets

 

The following table sets forth the cost basis, impairment amount, and carrying amount of digital assets held, as shown on the consolidated balance sheet as of June 30, 2025:

 

   Units   Cost   Impairment   Net 
                 
LsETH   164,731   $470,235,927   $(87,813,295)  $382,422,632 
Total       $470,235,927   $(87,813,295)  $382,422,632 

 

The cost of LsETH was initially recorded at fair value of LsETH on the date of receipt.  Following the receipt of LsETH in early June of 2025, the price of LsETH decreased; and it was determined that the carrying amount of the LsETH exceeded its fair value during the period ending June 30, 2025. The Company performs an analysis each quarter to identify whether events or changes in circumstances, principally decreases in the quoted prices on the Company’s principal market, indicate that it is more likely than not that the assets are impaired. In determining if an impairment has occurred, the Company considers the lowest price of one LsETH quoted on the principal market at any time since acquiring the specific LsETH held by the Company. For the period ending June 30, 2025, the Company recorded an impairment loss of $87.8 million in the condensed consolidated statement of operations within impairment of digital intangible assets.

 

The fair value of the LsETH is determined in accordance with ASC 820, Fair Value Measurement. For valuation purposes, the Company utilizes Coinbase as the principal market for LsETH.