Quarterly report [Sections 13 or 15(d)]

DIGITAL ASSETS

v3.26.1
DIGITAL ASSETS
3 Months Ended
Mar. 31, 2026
Intangible Asset, Goodwill and Other [Abstract]  
DIGITAL ASSETS

NOTE 7. DIGITAL ASSETS

 

On October 23, 2025, the Company adopted BERA as its primary treasury reserve asset. Under this treasury strategy, the Company acquires, holds, and strategically deploys BERA, the native token of the Berachain blockchain network, as well as certain BERA-based receipt, staked, or wrapped positions that are economically linked to BERA (“BERA-equivalent tokens”). These holdings are maintained for long-term treasury management, ecosystem participation, staking, validator activities, liquidity deployment, and other Board-approved strategic activities.

 

The Company accounts for its BERA and BERA-equivalent holdings as digital assets in accordance with ASC 350, Intangibles—Goodwill and Other, as amended by ASU 2023-08, Accounting for and Disclosure of Crypto Assets. The Company has legal ownership and control over these digital assets, which are presented as digital assets in the Condensed Consolidated Balance Sheets. As of March 31, 2026, certain BERA and BERA-equivalent holdings were subject to contractual transfer or sale restrictions under applicable treasury and protocol arrangements. Management considered such restrictions in its liquidity planning and treasury management activities.

 

Digital assets are initially recorded at cost upon purchase, receipt, or conversion. Transaction costs incurred to acquire digital assets are expensed as incurred unless otherwise required by applicable accounting guidance. Subsequently, BERA and BERA-equivalent holdings are remeasured at fair value as of each reporting date, with changes in fair value recognized in earnings within other (expense) income, net, in the Condensed Consolidated Statements of Operations.

 

For disclosure and treasury management purposes, the Company monitors both (i) native BERA units held directly and (ii) BERA-equivalent units, which represent positions in receipt, staked, wrapped, or protocol-native instruments that are economically convertible into, or otherwise directly linked to, underlying BERA units. Management evaluates treasury performance, exposure, and BERA-per-share metrics on both a native-unit basis and a BERA-equivalent basis.

 

The following tables present the units held, cost basis, and fair value of native BERA and BERA-equivalent digital assets as of March 31, 2026 and December 31, 2025, respectively, in thousands except for tokens: 

 

Period   BERA-Equivalent Tokens     Cost Basis (USD)     Fair Value (USD)  
March 31, 2026     77,712,731     $ 68,678     $ 34,232  
December 31, 2025     51,659,913     $ 58,262     $ 36,555  

 

Cost basis reflects the historical acquisition cost of digital assets, including digital assets acquired through the October 2025 PIPE transaction, subsequent treasury purchases, and staking rewards recognized upon receipt. Comparative period cost basis amounts are presented consistent with amounts previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

 

Cost basis reflects the cost of the digital asset at the time of purchase or receipt and excludes transaction costs that were expensed as incurred. Fair value represents quoted digital assets prices within the Company’s principal market at the time of measurement (11:59 p.m. UTC).

 

 

The following table presents a rollforward of the Company’s digital asset holdings, including BERA tokens and BERA-equivalent sWBERA, iBERA, siBERA, and similar tokens held in Company-controlled wallets, for the three months ended March 31, 2026. Digital assets are measured at fair value with changes recognized in earnings. U.S. dollar-denominated stablecoins that qualify as cash equivalents are excluded from this rollforward. Stablecoin-related protocol instruments that do not qualify as cash equivalents are also excluded from this rollforward.

 

    Digital Assets  
Balance as of December 31, 2025   $ 36,555  
Staking revenue     417  
Digital assets acquired from October 2025 PIPE     59,539  
Purchases of BERA and BERA-equivalent digital assets    

10,129

 
Change in fair value     (12,869 )
Balance at March 31, 2026   $ 34,232  

 

    Digital Assets  
Balance as of December 31, 2024   $

 
Digital assets acquired from October 2025 PIPE     59,539  
Purchases of BERA and BERA-equivalent digital assets     8,163  
Change in fair value     (31,147 )
Balance at December 31, 2025   $ 36,555  

 

As of March 31, 2026, a portion of the Company’s BERA and BERA-equivalent digital asset holdings were subject to contractual transfer or sale restrictions under the applicable treasury, staking, and protocol arrangements. As of December 31, 2025, the Company did not have any BERA or BERA-equivalent holdings subject to operational transfer restrictions. The table below summarizes the Company’s restricted and unrestricted BERA-equivalent holdings, including units held and fair value, as of each balance sheet date, in thousands except for token units.

 

    BERA-Equivalent Tokens     USD     BERA- Equivalent Tokens     USD  
    As of March 31, 2026     As of December 31, 2025  
    BERA-Equivalent Tokens     USD     BERA- Equivalent Tokens     USD  
Restricted Tokens     39,714,869     $ 17,494      

    $  
Unrestricted Tokens     37,997,862       16,738       51,659,913       36,555  
Total intangible digital assets     77,712,731     $ 34,232       51,659,913     $ 36,555