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Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2025
Fair Value of Financial Instruments [Abstract]  
Fair Value of Financial Instruments

Note 3 – Fair Value of Financial Instruments

 

ASC 820, Fair Value Measurements states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The three-tiered fair value hierarchy, which prioritizes which inputs should be used in measuring fair value, is comprised of: (Level I) observable inputs such as quoted prices in active markets; (Level II) inputs other than quoted prices in active markets that are observable either directly or indirectly and (Level III) unobservable inputs for which there is little or no market data. The fair value hierarchy requires the use of observable market data when available in determining fair value. The Company’s assets and liabilities that were measured at fair value on a recurring basis were as follows (in millions):

 

  

September 30, 2025

(Unaudited)

   December 31, 204 
   Fair Value   Level I   Level II   Level III   Fair Value   Level I   Level II   Level III 
Digital assets (1)  $858   $858   $
—
   $
—
   $
—
   $
—
   $
—
   $
—
 
Total  $858   $858   $
—
   $
—
   $
—
   $
—
   $
—
   $
—
 

 

As of September 30, 2025, the Company’s digital assets were comprised of 7,500 units of Bitcoin, at cost of $842 million. These Bitcoins were originally held by Pallas and continued to be held following the Company’s acquisition of Pallas. In accordance with ASU 2023-08, Intangibles—Goodwill and Other—Crypto Assets, the Company accounts for its crypto assets as indefinite-lived intangible assets measured at fair value, with changes in fair value recognized in net income each reporting period.

 

The fair value of Bitcoin is determined based on quoted prices in active markets. The Company does not apply amortization to digital assets. Gains and losses resulting from changes in fair value are presented within “Other income” in the consolidated statements of operations.

 

As of September 30, 2025, the fair value of the Company’s Bitcoin holdings was $857,735,191. For the three and nine months ended September 30, 2025, the Company recognized a net income of $16,230,431 in the consolidated statements of operations related to changes in the fair value of its Bitcoin holdings. There was no disposal of digital assets during the nine months ended September 30, 2025.