Note 16. Fair Value Measurements

Assets and liabilities measured at fair value on a recurring basis

The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis:

Fair value measured as of December 31, 2025

Significant

Quoted prices in

Significant other

unobservable

Total carrying

active markets

observable inputs

inputs

  ​ ​ ​

Value

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

Bitcoin(a)

$

1,227,462

$

1,227,462

$

$

Restricted bitcoin(a)

$

347,979

$

347,979

$

$

Derivative assets(b)

$

148,048

$

$

$

148,048

Contingent consideration liabilities(c)

$

8,195

$

$

$

8,195

Fair value measured as of December 31, 2024

Significant

Quoted prices in

Significant other

unobservable

Total carrying

active markets

observable inputs

inputs

  ​ ​ ​

Value

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

Bitcoin(a)

$

1,654,468

$

1,654,468

$

$

Derivative assets(b)

$

149,495

$

$

$

149,495

Contingent consideration liabilities(c)

$

26,855

$

$

$

26,855

Equity method investment - marketable securities(d)

$

134,265

$

134,265

$

$

Convertible note(d)

$

5,345

$

$

$

5,345

(a)See Note 5. Bitcoin
(b)See Note 9. Power Supply Agreements
(c)See Note 17. Commitments and Contingencies
(d)See Note 6. Investments

There were no transfers of financial instruments between Level 1, Level 2, and Level 3 during the periods presented.

Assets and liabilities not measured at fair value on a recurring basis:

In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also measures certain assets and liabilities at fair value on a nonrecurring basis. The Company’s non-financial assets, including goodwill, intangible assets, operating lease right-of-use assets, and property and equipment, are measured at fair value when there is an indication of impairment and the carrying amount exceeds the asset’s projected undiscounted cash flows. These assets are recorded at fair value only when an impairment charge is recognized.

As of December 31, 2025 and 2024, the fair values of cash and cash equivalents, restricted cash, accounts receivable, contract assets, prepaid expenses and other current assets, accounts payable, contract liabilities, and accrued expenses approximated their carrying values because of the short-term nature of these instruments.

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Feb 28, 2025
2023Feb 23, 2024
2022Mar 2, 2023
2021Mar 16, 2022
2020Mar 31, 2021
2019Mar 25, 2020

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.