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Fair Value Measurements | 9 Months Ended
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Sep. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities measured and recorded at fair value on a recurring basis (in thousands):
| September 30, 2025
| Level 1 | Level 2 | Level 3 | Total
Assets |  |  |  |
Cash and cash equivalents: |  |  |  |
Money market funds | $ | 362,357 |  | $ | — |  | $ | — |  | $ | 362,357 |
Restricted cash equivalents: |  |  |  |
Money market funds | 1,658 |  | — |  | — |  | 1,658 |
Crypto assets held: |  |  |  |
Bitcoin | 604,746 |  | — |  | — |  | 604,746 |
Ether | 46,164 |  | — |  | — |  | 46,164 |
Other crypto assets | — |  | 24,053 |  | — |  | 24,053 |
Receivable, crypto assets pledged: |  |  |  |
Bitcoin | — |  | 93,296 |  | — |  | 93,296 |
Ether | — |  | 86,883 |  | — |  | 86,883 |
Accounts receivable, net: |  |  |  |
Derivative assets(1) | — |  | 385 |  | — |  | 385 |
Prepaid expenses and other current assets: |  |  |  |
Equity securities | 1,382 |  | — |  | — |  | 1,382 |
Crypto asset options | — |  | 684 |  | — |  | 684 |
Other non-current assets: |  |  |  |
Warrants | — |  | — |  | 1,659 |  | 1,659 |
Total assets | $ | 1,016,307 |  | $ | 205,301 |  | $ | 1,659 |  | $ | 1,223,267 |
Liabilities |  |  |  |
Related party loans: |  |  |  |
Derivative liabilities (1) | $ | — |  | $ | 487,053 |  | $ | — |  | $ | 487,053 |
Other current liabilities: |  |  |  |
Crypto asset collateral payable | — |  | 21,282 |  | — |  | 21,282 |
Crypto asset options | — |  | 685 |  | — |  | 685 |
Crypto asset futures | — |  | 189 |  | — |  | 189 |
Total liabilities | $ | — |  | $ | 509,209 |  | $ | — |  | $ | 509,209 |
__________________ |  |  |  |
(1) Excludes the related host contracts which are not measured and recorded at fair value as of September 30, 2025 and are disclosed in the table below.
| December 31, 2024
| Level 1 | Level 2 | Level 3 | Total
Assets |  |  |  |
Restricted cash equivalents: |  |  |  |
Money market funds | $ | 1,607 |  | $ | — |  | $ | — |  | $ | 1,607 |
Crypto assets held: |  |  |  |
Bitcoin | 412,115 |  | — |  | — |  | 412,115 |
Ether | 17,562 |  | — |  | — |  | 17,562 |
Other crypto assets | — |  | 40,424 |  | — |  | 40,424 |
Receivable, crypto assets pledged: |  |  |  |
Bitcoin | — |  | 86,708 |  | — |  | 86,708 |
Ether | — |  | 81,592 |  | — |  | 81,592 |
Accounts receivable, net: |  |  |  |
Derivative assets(1) | — |  | 307 |  | — |  | 307 |
Prepaid expenses and other current assets: |  |  |  |
Crypto asset collateral held | — |  | 15,275 |  | — |  | 15,275 |
Equity securities | 219 |  | — |  | — |  | 219 |
Corporate bonds | — |  | 774 |  | — |  | 774 |
Crypto asset options | — |  | 6,354 |  | — |  | 6,354 |
Total assets | $ | 431,503 |  | $ | 231,434 |  | $ | — |  | $ | 662,937 |
Liabilities |  |  |  |
Related party loans: |  |  |  |
Derivative liabilities (1) | $ | — |  | $ | 413,700 |  | $ | — |  | $ | 413,700 |
Related party convertible notes: |  |  |  |
Convertible notes | — |  | — |  | 248,783 |  | 248,783 |
Other current liabilities: |  |  |  |
Crypto asset collateral payable | — |  | 15,275 |  | — |  | 15,275 |
Crypto asset options | — |  | 6,371 |  | — |  | 6,371 |
Crypto asset futures | — |  | 1,249 |  | — |  | 1,249 |
Total liabilities | $ | — |  | $ | 436,595 |  | $ | 248,783 |  | $ | 685,378 |
__________________ |  |  |  |
(1) Excludes the related host contracts which are not measured and recorded at fair value as of December 31, 2024 and are disclosed in the table below.
Refer to Note 2. Summary of Significant Accounting Policies for further details on the valuation methods and significant inputs of the Level 2 and Level 3 assets and liabilities identified in the Company's audited annual consolidated financial statements for the year ended December 31, 2024. During the nine months ended September 30, 2025 and 2024, the Company did not make any transfers in or out of the levels of the fair value hierarchy. The following table is a roll-forward of Level 3 investments measured and recorded at fair value on a recurring basis (in thousands): Level 3 Investments - Warrants
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Beginning balance | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Additions | 4,345 |  |  | — |  |  | 4,345 |  |  | — |
Unrealized loss attributable to change in fair value | (2,686) |  |  | — |  |  | (2,686) |  |  | — |
Ending balance | $ | 1,659 |  |  | $ | — |  |  | $ | 1,659 |  |  | $ | — |
Level 3 Investments - Convertible Notes
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Beginning balance related party convertible notes | $ | 273,454 |  |  | $ | 222,175 |  |  | $ | 248,783 |  |  | $ | 134,928 |
Additions | 3,375 |  |  | 4,022 |  |  | 11,309 |  |  | 81,076 |
OCI - Change in fair value attributable to instrument-specific credit risk | — |  |  | 1,067 |  |  | (874) |  |  | (2,261) |
Unrealized loss attributable to change in fair value | 8,178 |  |  | 9,775 |  |  | 25,789 |  |  | 23,296 |
Conversion of convertible notes to common stock in connection with IPO | (285,007) |  |  | — |  |  | (285,007) |  |  | — |
Ending balance related party convertible notes | $ | — |  |  | $ | 237,039 |  |  | $ | — |  |  | $ | 237,039 |
Level 3 Investments - Term Loans
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024(1) |  | 2025 |  | 2024(1)
Beginning balance related party term loans | $ | 514,868 |  |  | $ | — |  |  | $ | 237,209 |  |  | $ | — |
Additions | 44,703 |  |  | — |  |  | 230,439 |  |  | — |
OCI - Change in fair value attributable to instrument-specific credit risk | — |  |  | — |  |  | (2,397) |  |  | — |
Unrealized loss attributable to change in fair value | 24,989 |  |  | — |  |  | 119,309 |  |  | — |
Conversion of related party term loans to common stock in connection with IPO | (584,560) |  |  | — |  |  | (584,560) |  |  | — |
Ending balance related party term loans | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
__________________
(1) In 2024, the 2024 Term Loan was not yet amended to include a conversion option and was classified as a Level 2 investment.
The Company fair values its convertible notes and convertible term loans utilizing a scenario-based approach that considers various conversion and repayment scenarios, along with a discounted cash flow analysis, which is used to determine the value of an investment today based on projections of future cash flows. The significant input utilized in the discounted cash flow analysis included the discount rate which ranged from 19.5% - 21.7% for both the three and nine months ended September 30, 2025 and 2024. Convertible notes and related party term loans outstanding prior to the IPO converted to equity and are no longer included in Level 3 investments as of September 30, 2025. Assets and liabilities measured and recorded at fair value on a non-recurring basis The Company’s non-financial assets and liabilities, such as intangible assets, software, property and equipment, and lease right-of-use assets, are adjusted to fair value on a non-recurring basis when an impairment charge is recognized. The fair value used in assessing an impairment for these assets are largely based on Level 2 or Level 3 inputs. The Company’s strategic investments are also measured at fair value on a non-recurring basis. Such fair value measurements are based predominantly on Level 3 inputs such as the recent transaction price involving the same or similar investment, and are adjusted as necessary to reflect relevant market conditions and investment-specific factors. Refer to Note 8. Prepaid Expenses and Other Assets for additional information. Financial assets and liabilities not measured and recorded at fair value The following tables summarize the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of September 30, 2025 and December 31, 2024 (in thousands):
| September 30, 2025
| Level 1 | Level 2 | Level 3 | Total(1)
Financial Assets: |  |  |  |
Financial assets for which carrying values equal or approximate fair value |  |  |  |
Cash and cash equivalents | $ | 487,462 |  | $ | — |  | $ | — |  | $ | 487,462 |
Restricted cash and cash equivalents | 86,073 |  | — |  | — |  | 86,073 |
Customer custodial funds | 532,804 |  | — |  | — |  | 532,804 |
Accounts receivable, net(2) | 9,793 |  | — |  | 74,037 |  | 83,830 |
Total assets | $ | 1,116,132 |  | $ | — |  | $ | 74,037 |  | $ | 1,190,169 |
Financial Liabilities: |  |  |  |
Financial liabilities for which carrying values equal or approximate fair value |  |  |  |
Custodial funds due to customer | $ | 532,676 |  | $ | — |  | $ | — |  | $ | 532,676 |
Third party loans | — |  | 192,507 |  | — |  | 192,507 |
Related party loans(2) | — |  | 290,226 |  | — |  | 290,226 |
Funding debt | — |  | 49,204 |  | — |  | 49,204 |
Total liabilities | $ | 532,676 |  | $ | 531,937 |  | $ | — |  | $ | 1,064,613 |
| December 31, 2024
| Level 1 | Level 2 | Level 3 | Total(1)
Financial Assets: |  |  |  |
Financial assets for which carrying values equal or approximate fair value |  |  |  |
Cash and cash equivalents | $ | 42,847 |  | $ | — |  | $ | — |  | $ | 42,847 |
Restricted cash and cash equivalents | 26,776 |  | — |  | — |  | 26,776 |
Customer custodial funds | 575,628 |  | — |  | — |  | 575,628 |
Accounts receivable, net(2) | 5,802 |  | — |  | 59,259 |  | 65,061 |
Total Assets | $ | 651,053 |  | $ | — |  | $ | 59,259 |  | $ | 710,312 |
Financial Liabilities: |  |  |  |
Financial liabilities for which carrying values equal or approximate fair value |  |  |  |
Custodial funds due to customer | $ | 574,080 |  | $ | — |  | $ | — |  | $ | 574,080 |
Third party loans | — |  | 117,612 |  | — |  | 117,612 |
Related party loans(2) | — |  | 385,671 |  | — |  | 385,671 |
Total liabilities | $ | 574,080 |  | $ | 503,283 |  | $ | — |  | $ | 1,077,363 |
__________________ |  |  |  |
(1) The total carrying value is equal to the total estimated fair value for all financial assets and liabilities.
(2) Excludes the embedded derivatives which are measured and recorded at fair value as of September 30, 2025 and December 31, 2024 and are disclosed in the table above.
The carrying values of financial assets and liabilities equal or approximate fair value because they are short-term in duration, have no defined maturity or have a floating interest rate. The Company determined credit card receivables to be Level 3 assets. While credit card receivables are short term in duration similar to above, the Company applied the current expected loss model to determine the value of receivables and therefore Level 3 classification is appropriate.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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