3 unchanged sentences
those projected in the forward-looking statements.
−Removed: are exposed to the impact of market price changes in bitcoin.
Price Risk of Bitcoin.
−Removed: We have invested a significant portion of our cash in bitcoin and, as of December 31, 2021, we held approximately
−Removed: 8,115 bitcoins.
−Removed: The carrying value of our bitcoins as of December 31, 2021 was $42,667, which reflects cumulative impairments
−Removed: of $29.6 million, on our Consolidated Balance Sheet.
−Removed: As discussed in Note 2, Summary of Significant Accounting Policies, to the Consolidated
−Removed: Financial Statements, we account for our bitcoin as indefinite-lived intangible assets, which are subject to impairment losses if the
−Removed: fair value of our bitcoin decreases below their carrying value at any time since their acquisition.
−Removed: Impairment losses cannot be recovered
−Removed: for any subsequent increase in fair value.
−Removed: For example, the market price of one bitcoin in our principal market ranged from $46,178 -
−Removed: $67,634 during the three months ended December 31, 2021, but the carrying value of each bitcoin we held at the end of the reporting
−Removed: period reflects the lowest price of one bitcoin quoted on the active exchange at any time since its acquisition.
−Removed: Therefore, negative
−Removed: swings in the market price of bitcoin could have a material impact on our earnings and on the carrying value of our digital assets.
−Removed: swings in the market price of bitcoin are not reflected in the carrying value of our digital assets and impact earnings only when the
−Removed: bitcoin is sold at a gain.
−Removed: For the year ended December 31, 2021, we incurred impairment losses of $29.6 million on our bitcoin.
−Removed: March 9, 2022, at 4:00 p.m.
−Removed: EST, the market price of one bitcoin in our principal market was $38,900.
+Added: The Company holds a significant amount of bitcoin and as such, we are exposed to the impact of market
+Added: price changes in bitcoin on our bitcoin holdings.
+Added: This exposure would generally manifest itself in the following areas:
+Added: account for our bitcoin holdings as indefinite lived intangible assets and we record impairment charges whenever the carrying value
+Added: of our bitcoin holdings on the balance sheet exceeds their fair market value.
+Added: Subsequent recovery of bitcoin prices would not impact
+Added: the carrying value of bitcoin on the balance sheet, as recovery of previously recorded impairment charges are not allowed under US
+Added: in the fair market value of bitcoin also impact the value of collateral for our loan facilities.
+Added: If the fair market value of bitcoin
+Added: held as collateral declines such that the loan-to-value ratio is above 75%, the Company is required to add collateral to bring the
+Added: ratio back to 65%.
+Added: If the value of the collateral increases such that the loan-to-value ratios falls below 65%, the Company can require
+Added: a return of collateral to bring the ratio back to 65%.
+Added: in the fair market value of bitcoin also impact the Adjusted Net Worth covenant in our loan agreements, as this covenant allows for
+Added: Net Worth to be calculated based in the fair market value (and not the carrying value) of our digital assets.
+Added: in the fair market value of bitcoin also impact the cash value that would be realized if we were to sell our bitcoin for cash, therefore
+Added: having a negative impact on our liquidity.
+Added: December 31, 2022, the Company held approximately 12,232 bitcoin and the fair value of a single bitcoin was approximately $16,545, meaning
+Added: that the fair value of our bitcoin holdings on that date was approximately $202,409 thousand .
+Added: Approximately 4,417 of these bitcoin, or $73,100 thousand, were being utilized as collateral
+Added: for borrowings.
+Added: The remaining 7,815 bitcoin, or $129,300 thousand, were unrestricted bitcoin
+Added: Prior to the termination of its credit facilities on March 8, 2023, the Company was exposed to interest rate risk
+Added: as both our Term Loan and RLOC facilities called for interest at a variable rate tied to the Wall Street Journal Prime Rate (“WSJ
+Added: Prime”), which was 7.75% as of March 8, 2023.
+Added: Our Term Loan facility called for interest rates at the WSJ Prime rate plus a margin
+Added: of 1.75% or 9.50% as of March 8, 2023.
+Added: Our RLOC facility called for interest rates at the WSJ Prime rate plus a margin that varies based
+Added: on the collateral posted as follows:
+Added: margin (9.00% currently) if the RLOC LTV Ratio is less than 40%
+Added: margin (9.75% currently) if the RLOC LTV Ratio is greater than 40% but less than 55%
+Added: margin (10.50% currently) if the RLOC LTV Ratio is greater than 55%
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.