Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact
our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily the result of
fluctuations in the price of bitcoin and commodities.
Risk Regarding the Price of Bitcoin
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
bitcoin mining operations.
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. 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.
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
of $101,639 .
Commodity Price Risk
Certain operating costs incurred by us are subject to price fluctuations caused by the volatility of underlying commodity prices,
the most significant of which is electricity. We closely monitor the cost of electricity at all of our locations. Our colocation customer
agreements include power pass-through provisions that allow us to recover the cost of customer power usage. We did not have
commodity derivative instruments outstanding as of December 31, 2025.
64
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.