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 September 30, 2025, except as follows:
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We have used a significant portion of our cash and cash equivalents, including cash generated from capital raising transactions, to acquire bitcoin and bitcoin related assets. We account for our bitcoin as
indefinite-lived intangible assets. Although we initially recorded 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. Bitcoin is a highly volatile asset that has traded below $66,000 per bitcoin and above $126,000 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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