DIGITAL ASSETS

3 Months Ended

Mar. 31, 2026

DIGITAL ASSETS

DIGITAL ASSETS

NOTE 3 – DIGITAL ASSETS

The Company’s digital assets are comprised solely of BTC. In accordance with ASC Topic 820, Fair Value Measurement, the Company measures the fair value of its BTC based on the quoted price at 4:00pm EST on the measurement date for a single BTC on an active trading platform, Coinbase. Management has determined that Coinbase, an active exchange market, represents a principal market for BTC and at 4:00pm EST, the price is both readily available and representative of fair value (Level 1 inputs). As of March 31, 2026, the Company held 1,083.14 BTC at Coinbase with a cost basis of $109,186,753, and a fair value of $73,900,182. As of December 31, 2025, the Company held 1,074.21 BTC at Coinbase with a cost basis of $108,514,113, and a fair value of $93,995,256.

The following table presents the roll forward of activity related to the Company’s digital assets for the three months ended March 31, 2026 and 2025:

	Digital Assets
	For the Three Months Ended March 31,
	2026		2025
Beginning balance at January 1	$	93,995,256	$	20,281,184
Additions - purchased		—		44,499,352
Additions - mined		662,311		249,754
Dispositions		—		—
Received as downtime credits		10,328		—
Change in fair value		(20,767,713)		(9,748,600)
Balance, March 31	$	73,900,182	$	55,281,690

During the three months ended March 31, 2026, the Company did not purchase BTC. The Company continued its digital asset mining operations pursuant to existing machine lease agreements. During the three months ended March 31, 2026, 8.80 BTC have been earned from mining operations, at an average value of $75,263 per BTC. During the three months ended March 31, 2026, the Company recognized mining revenue of $662,311, and received BTC with an aggregate fair value of $10,328 from the lessors as compensation for machine downtime, which is used to offset lease costs.

During the three months ended March 31, 2025, the Company purchased 449.45 Bitcoin at an average cost of $99,008 per BTC, inclusive of fees and expenses, for an aggregate cost of $44,499,352. During the three months ended March 31, 2025, 2.97 BTC have been earned from mining operations, at an average value of $84,186 per BTC. During the three months ended March 31, 2025, the Company recognized mining revenue of $249,754.

Loan Agreement

In July 2025, the Company secured a $20 million credit facility (which has no fixed termination date) with Coinbase, its digital assets custodian (the “Custodian”). Pursuant to the terms of the agreement, either party may terminate a loan on a termination date established by notice given to the other party prior to the close of business on any day that is a calendar day. On July 8, 2025, we borrowed $8 million (“Initial Drawdown”) which was repaid on October 15, 2025. On March 27, 2026, the Company borrowed $5 million (the “Second Drawdown”) against its $20 million credit facility with Coinbase. The Second Drawdown bears a 7% loan fee, and the Company segregated 125 bitcoin as collateral against this loan. The Second Drawdown is subject to the terms and conditions of the Master Loan Agreement. As of March 31, 2026, the full $5 million of principal was outstanding and the Company incurred interest in the amount of $4,795 pursuant to the Second Drawdown. See Note 12 – Subsequent Events for information related to activity that occurred subsequent to March 31, 2026.