Quantitative and Qualitative Disclosures About Market Risk
−Removed: The following discussion about our market risk exposures involves forward-looking statements.
−Removed: Actual results could differ materially from those projected in our forward-looking statements.
−Removed: For more information regarding the forward-looking statements used in this section and elsewhere in this Annual Report on Form 10-K, see the section titled “Cautionary Note Regarding Forward-Looking Statements” included at the forepart of this Annual Report on Form 10-K.
−Removed: Foreign Currency and Exchange Risk
−Removed: The vast majority of our cash generated from revenue is denominated in U.S.
+Added: We are exposed to market risks in the ordinary course of our business.
+Added: Market risk represents the risk of loss that may impact
+Added: our financial position due to adverse changes in financial market prices and rates.
+Added: Our market risk exposure is primarily the result of
+Added: fluctuations in the price of bitcoin and commodities.
Risk Regarding the Price of Bitcoin
−Removed: Our business and development strategy is focused on maintaining and expanding our bitcoin Mining operations to maximize the amount of new bitcoin rewards we earn.
−Removed: As of December 31, 2024, we held 255.9 bitcoin, with a carrying value of $23.9 million, all of which were produced from our bitcoin mining operations.
−Removed: We cannot predict the future market price of bitcoin and, as such, we cannot predict future changes in the carrying value of our bitcoin assets based on future market prices.
−Removed: The future value of bitcoin will affect the amount of revenue recognized from our operations, and any changes in the future value of bitcoin while we hold it in our account would also be reported in our net income (or loss), either of which could have a material adverse effect on the market price for our securities.
−Removed: Bitcoin prices for the year ended December 31, 2024 ranged from a low of $38,515 to a high of $108,253, with an average price of $65,894.
−Removed: A hypothetical 10% increase or decrease in the price of bitcoin produced during the year ended December 31, 2024, would have increased or decreased net loss by approximately $40.9 million.
+Added: As of December 31, 2025 , we held 2,537 bitcoin, with a carrying value of $222.0 million , all of which were produced from our
+Added: bitcoin mining operations.
+Added: We cannot predict the future market price of bitcoin and, as such, we cannot predict future changes in the carrying value of our
+Added: bitcoin assets based on future market prices.
+Added: The future value of bitcoin will affect the amount of revenue recognized from our
+Added: operations, and any changes in the future value of bitcoin while we hold it in our account would also be reported in our net income (or
+Added: loss), either of which could have a material adverse effect on the market price for our securities.
+Added: Bitcoin p rices for the year ended December 31, 2025 ranged from a low of $74,485 to a high of $126,210 , with an average price
+Added: of $101,639 .
Commodity Price Risk
−Removed: Certain of our operating costs are subject to price fluctuations caused by the volatility of the underlying commodity prices, including electricity used in our data center operations.
−Removed: The Company manages the commodity price risk by entering into derivative instruments to manage the variability in future cash flows from forecasted energy purchases.
−Removed: Management considers energy prices, weather forecasts, forecasted energy purchases, and other factors when determining the extent of its risk management strategy over commodity price risk.
−Removed: A hypothetical 10% change in commodity prices would have resulted in an immaterial change in the fair value of our commodity-based derivatives as of December 31, 2024 and 2023.
−Removed: For more information, refer to Note 2 — Summary of Significant Accounting Policies to our consolidated financial statements in Item 8 of Part II of this Annual Report on Form 10-K.
+Added: Certain operating costs incurred by us are subject to price fluctuations caused by the volatility of underlying commodity prices,
+Added: the most significant of which is electricity.
+Added: We closely monitor the cost of electricity at all of our locations.
+Added: Our colocation customer
+Added: agreements include power pass-through provisions that allow us to recover the cost of customer power usage.
+Added: We did not have
+Added: commodity derivative instruments outstanding as of December 31, 2025.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.