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DIGITAL ASSETS
 6 Months Ended
Jun. 30, 2026
DIGITAL ASSETS  
DIGITAL ASSETS

NOTE 3 – DIGITAL ASSETS 

 

During the six months ended June 30, 2026, the Company continued to hold SUI tokens acquired pursuant to the Digital Asset Purchase and Sale Agreement with the Sui Foundation, which remain subject to contractual transfer restrictions through August 30, 2027. The Company is permitted to stake the restricted SUI tokens during the restriction period.

 

The discount associated with the acquisition of 32,613,028 restricted SUI tokens is recorded as deferred income and is recognized on a straight‑line basis over the period to August 30, 2027 as an adjustment to gains or losses on digital assets. As of June 30, 2026, the Company recorded deferred income related to the acquisition discount of $13.8 million, of which $11.9 million was classified as current and $1.9 million was classified as non‑current. For the six months ended June 30, 2026, the Company recognized $5.9 million of amortized deferred income, which was recorded as a reduction to realized loss on digital assets in the statements of operations.

The following table presents the activities in digital assets for the six months ended June 30, 2026:

 

Digital Assets (In thousands, except for token quantities)

 

Number of Tokens

 

 

Cost basis

 

 

Fair value

 

 

 

 

 

 

 

Balance as of January 1, 2026

 

 

105,086,451

 

 

$401,991

 

 

$147,415

 

Return of digital asset loan

 

 

961,550

 

 

 

1,023

 

 

 

1,023

 

Digital asset loan advanced

 

 

(4,000,000)

 

 

(16,870)

 

 

(2,870)

Transfers of digital asset receivable

 

 

(11,900,024)

 

 

(50,186)

 

 

(11,666)

Realized loss on transfer and digital asset loan advanced

 

 

—

 

 

 

—

 

 

 

(52,520)

Staking rewards earned and received

 

 

775,885

 

 

 

829

 

 

 

829

 

Lending rewards earned and received

 

 

89,959

 

 

 

90

 

 

 

90

 

Staking/lending rewards accrued in prior period, received

 

 

41,583

 

 

 

57

 

 

 

57

 

Unrealized gains (losses)

 

 

—

 

 

 

—

 

 

 

(19,550)

Balance as of June 30, 2026

 

 

91,055,404

 

 

$336,934

 

 

$62,808

 

 

Digital assets are measured at fair value on a recurring basis in accordance with ASC 820, Fair Value Measurement, using quoted prices in active markets (Level 1 inputs).

 

For the six months ended June 30, 2026, we incurred $0.6 million in asset and strategic management fees under our strategic and asset management arrangements.