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Concentration of Credit Risk
 9 Months Ended
Sep. 30, 2025
Concentration of Credit Risk  
Concentration of Credit Risk

14.Concentration of Credit Risk

Credit risk is the risk of loss from amounts owed by the financial counterparties. Credit risk can occur at multiple levels as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash, Bitcoin, receivable for Bitcoin collateral and accounts receivable.

The Company maintains cash with major financial institutions. The Company’s cash consists of bank deposits held with banks that, at times, exceed federally insured limits. As of September 30, 2025 and December 31, 2024, the Company held deposits of $10,311 and $5,314, respectively. These deposits are largely uninsured. The Company also invested in U.S. government money market funds in the amount of $3,638 as of December 31, 2024. The Company held 5,048 and 1,018 Bitcoins, valued at $575,772 and $64,482 as of September 30, 2025 and September 30, 2024, respectively, including 315 Bitcoins receivable valued at $35,928 held as collateral for the Coinbase Loan. As of September 30, 2025, two providers accounted for 70.0% and 30.0% of the Company’s total Bitcoin holdings. As of September 30, 2024, two providers accounted for 81.3% and 18.7% of the Company’s total Bitcoin holdings. The Company’s Bitcoin is held offline in cold storage with third-party providers. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality and by performing periodic evaluations of the relative credit standing of these financial institutions.

Management periodically monitors the creditworthiness of its customers and believes that it has adequately provided for exposure to potential credit losses. For the three months ended September 30, 2025, two customers (including affiliates) accounted for 49.0% and 23.4% of the Company’s revenues, respectively. For the three months ended September 30, 2024, two customers (including affiliates) accounted for 44.0% and 28.8% of the Company’s revenues, respectively. For the nine months ended September 30, 2025, two customers (including affiliates) accounted for 45.0% and 29.0% of the Company’s revenues, respectively. For the nine months ended September 30, 2024, two customers (including affiliates) accounted for 44.2% and 26.6% of the Company’s revenues, respectively. As of September 30, 2025, two customers accounted for 45.9% and 18.7% of the Company’s accounts receivable, respectively. As of December 31, 2024, three customers accounted for 33.9%, 28.7%, and 14.0% of the Company’s accounts receivable, respectively.

As of September 30, 2025, three vendors accounted for 30.8%, 24.6% and 19.7% of the Company’s accounts payable, respectively. As of December 31, 2024, three vendors accounted for 29.4%, 16.7% and 15.6% of the Company’s accounts payable, respectively.

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