Quantitative and Qualitative Disclosures About Market Risk.
−Removed: of September 30, 2022, our exposure to market risk was primarily from our At-The-Market Facility.
−Removed: During the quarter the price at which
−Removed: we sold our common stock per share fluctuated from $5.54 to $18.24 with an average price per share of $11.85.
−Removed: We also have interest rate
−Removed: risk associated with our RLOC and Term Loan facilities, both of which bear interest at a variable rate tied to the Wall Street Journal
−Removed: We have no other floating debt obligations.
−Removed: Our interest rate exposure will be primarily due to differences between our floating
−Removed: rate debt obligations compared to our floating rate short-term investments.
−Removed: Our ability to borrow under our debt facilities is based
−Removed: upon a floating formula regarding the value of collateral, which is our owned bitcoin, thus decreases in the market price for bitcoin
−Removed: limit our ability to borrow under the facility.
−Removed: have been no other material changes in our primary risk exposures or management of market risks as of this quarter.
+Added: following discussion about our market risk exposures involves forward-looking statements.
+Added: Actual results could differ materially from
+Added: those discussed in the forward-looking statements.
+Added: Price Risk of Bitcoin.
+Added: The Company holds a significant amount of bitcoin;
+Added: therefore, it is exposed to the impact of market price
+Added: changes in bitcoin on its 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
+Added: charges whenever the carrying value of our bitcoin holdings on the balance sheet exceeds
+Added: their fair market value.
+Added: Subsequent recovery of bitcoin prices would not impact the carrying
+Added: value of bitcoin on the balance sheet, as recovery of previously recorded impairment charges
+Added: are not allowed under US GAAP.
+Added: in the fair market value of bitcoin also impact the cash value that would be realized if
+Added: we were to sell our bitcoin for cash, therefore having a negative impact on our liquidity.
+Added: March 31, 2023, the Company held approximately 11,466 bitcoin and the fair value of a single bitcoin was approximately $28,474, meaning
+Added: that the fair value of our bitcoin holdings on that date was approximately $326,487 thousand.
+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, which was
+Added: 7.75% as of March 8, 2023.
+Added: Our Term Loan facility called for interest rates at the WSJ Prime rate plus a margin of 1.75% or 9.50% as
+Added: of March 8, 2023.
+Added: Our RLOC facility called for interest rates at the WSJ Prime rate plus a margin that varies based on the collateral
+Added: 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.