EQUITY SECURITIES

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

6. EQUITY SECURITIES

Equity securities consist of the following (in thousands):


	June 30, 2023		December 31, 2022
Equity securities accounted for under the equity method under ASC 323	$	170,076	$	213,494
Equity securities accounted for under the equity method under the fair value option	38,385		82,787
Equity securities under ASC 321	15		36
Total equity securities	$	208,476	$	296,317

Our equity securities accounted for under the equity method under ASC 323 include equity securities in which we can exercise significant influence, but not control, over these entities through holding more than a 20% voting interest in the entity. The following table includes our equity securities accounted for under the equity method and related ownership interest as of June 30, 2023:


			Ownership interest
Medici Ventures, L.P.			99%
tZERO Group, Inc.			28%
SpeedRoute, LLC			49%

The carrying amount of our equity method securities was $208.5 million at June 30, 2023, which is included in Equity securities on our consolidated balance sheets, of which $38.4 million is valued under the fair value option (tZERO and SpeedRoute). For our investments in Medici Ventures, tZERO, and SpeedRoute there is no difference in the carrying amount of the assets and liabilities and our maximum exposure to loss, and there is no difference between the carrying amount of our investment in Medici Ventures and the amount of underlying equity we have in the entity's net assets.

The following table summarizes the net loss recognized on equity method securities recorded in Other expense, net in our consolidated statements of operations (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Net loss recognized on our proportionate share of the net assets of our equity method securities	$	(36,237)	$	(2,284)	$	(43,418)	$	(3,748)
Increase (decrease) in fair value of equity method securities held under fair value option	(44,402)		—		(44,402)		1,165

Regulation S-X Rule 10-01(b)(1)

In accordance with Rule 10-01(b)(1) of Regulation S-X, which applies to interim reports on Form 10-Q, the Company must determine if its equity method investees are considered "significant subsidiaries". Summarized income statement information of an equity method investee is required in an interim report if the significance criteria are met as defined under SEC guidance.

The following is the unaudited summarized financial information for those equity method securities that met the significance criteria for the period ended June 30, 2023 (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Results of Operations
Revenues	$	266	$	820	$	764	$	1,560
Pre-tax loss	(3,088)		(8,067)		(8,295)		(13,447)
Net loss	(3,111)		(8,816)		(8,435)		(13,196)