Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and qualitative disclosures about market risk appear in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Quantitative and Qualitative
Disclosures about Market Risk” in the Company’s Annual Report. There has been no significant change in our exposure to market risk during the quarter ended June 30, 2025, except as follows:
We have used a significant portion of our cash and cash equivalents, including cash generated from capital raising transactions, to acquire bitcoin subsequent to June 30,
2025. We will account for our bitcoin as indefinite-lived intangible assets. Although we will initially record our bitcoin purchases at cost, any subsequent increases or decreases in fair value are recognized as incurred in the consolidated
statements of operations, and the fair value of our bitcoin is reflected within the consolidated balance sheets each reporting period-end. As of June 30, 2025, we did not hold any bitcoin. Bitcoin is a highly volatile asset that has traded below
$50,000 per bitcoin and above $120,000 per bitcoin in our principal market in the 12 months preceding the date of this Quarterly Report. A significant decrease in the price of bitcoin would have a material adverse effect on our earnings.
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