What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-09 compared with 2024-11-07 · 370 added, 757 removed, 872 unchanged (56% of the section changed)

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(In Thousands, Except Per Share Amounts)

September 30,

Current assets:

Cash, cash equivalents and restricted cash (including $ 11,192 and $ 5,007 invested in the WisdomTree Government Money Market Digital Fund at September 30, 2024 and December 31, 2023, respectively)

Financial instruments owned, at fair value (including $ 70,010 and $ 47,559 invested in WisdomTree products at September 30, 2024 and December 31, 2023, respectively) (Note 5)

Accounts receivable (including $33,764 and $28,511 due from related parties at September 30, 2024 and December 31, 2023, respectively)

Cash, cash equivalents and restricted cash (including $ 11,282 invested in the WisdomTree

Government Money Market Digital Fund at March 31, 2025 and December 31, 2024) (Note 3)

Financial instruments owned, at fair value (including $ 78,590 and $ 78,540 invested

in WisdomTree products at March 31, 2025 and December 31, 2024, respectively) (Note 5)

Accounts receivable (including $ 35,440 and $ 34,959 due from related parties at March 31, 2025 and December 31, 2024, respectively)

Income taxes receivable

Prepaid expenses

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Fixed assets, net

Securities held-to-maturity

Deferred tax assets, net (Note 18)

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Payable to GBH (Note 9)

Operating lease liabilities—long term

Operating lease liabilities (Note 10)

Total liabilities

Preferred stock—Series A Non-Voting Convertible, par value $ 0.01 ;

Zero and 14.750 shares authorized, issued and outstanding at September 30, 2024 and December 31, 2023, respectively;

redemption value of $0 and $ 96,869 at September 30, 2024 and December 31, 2023, respectively) (Note 11)

Contingencies (Note 11)

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issued and outstanding:

146,104 and 150,330 at September 30, 2024 and December 31, 2023, respectively

147,034 and 146,102 at March 31, 2025 and December 31, 2024, respectively

Additional paid-in capital

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Three Months Ended

September 30,

Nine Months Ended

September 30,

Operating Revenues:

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Sales and business development

Contractual gold payments (Note 9)

Professional fees

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Interest expense

Gain on revaluation/termination of deferred consideration—gold payments (Note 9)

Interest income

Impairments (Note 25)

Loss on extinguishment of convertible notes (Note 10)

Other losses, net

Other losses and gains, net

Income before income taxes

Income tax expense

Net (loss)/income

(Loss)/earnings per share—basic

(Loss)/earnings per share—diluted

Earnings per share—basic

Earnings per share—diluted

Weighted-average common shares—basic

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and Subsidiaries

Consolidated Statements of Comprehensive (Loss)/Income

Consolidated Statements of Comprehensive Income

(In Thousands)

Three Months Ended

September 30,

Nine Months Ended

September 30,

Net (loss)/income

Other comprehensive income/(loss)

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Other comprehensive income/(loss)

Comprehensive (loss)/income

The accompanying notes are an integral part

of these consolidated financial statements.

WisdomTree, Inc.

and Subsidiaries

Consolidated Statements of Changes in Stockholders’

(In Thousands)

Three Months Ended September 30, 2024

Preferred Stock

Comprehensive

(Loss)/Income

Balance—July 1, 2024

Shares repurchased

Restricted stock issued and vesting of restricted stock units, net

Stock-based compensation

Repurchase of Series A Preferred Stock (Note 11)

Excise taxes – stock repurchases

Other comprehensive income

Balance—September 30, 2024

Three Months Ended September 30, 2023

Preferred Stock

Comprehensive

Balance—July 1, 2023

Shares repurchased

Restricted stock issued and vesting of restricted stock units, net

Stock-based compensation

Other comprehensive loss

Balance—September 30, 2023

Comprehensive income

The accompanying notes are an integral part

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(In Thousands)

Nine Months Ended September 30, 2024

Preferred Stock

Three Months Ended March 31, 2025

Comprehensive

(Loss)/Income

Balance—January 1, 2025

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Stock-based compensation

Repurchase of Series A Preferred Stock (Note 11)

Excise taxes – Stock repurchases

Other comprehensive income

Balance—September 30, 2024

Nine Months Ended September 30, 2023

Preferred Stock

Balance—March 31, 2025

Three Months Ended March 31, 2024

Comprehensive

Balance—January 1, 2024

Shares issued in connection with termination of the deferred consideration—gold payments obligation, net of issuance costs (Note 9)

Restricted stock issued and vesting of restricted stock units, net

Shares issued in connection with convertible notes that matured on June 15, 2023 (Note 10)

Shares repurchased

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Other comprehensive loss

Balance—September 30, 2023

Balance—March 31, 2024

The accompanying notes are an integral part

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(In Thousands)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Adjustments to reconcile net income to net cash provided by/(used in) operating activities:

Advisory and license fees paid in gold, other precious metals and cryptocurrency

Loss on extinguishment of convertible notes

Stock-based compensation

(Gains)/losses on financial instruments owned, at fair value

Deferred income taxes

Imputed interest on payable to GBH

Amortization of issuance costs—convertible notes

Depreciation and amortization

Imputed interest on payable to GBH

Losses/(gains) on financial instruments owned, at fair value

Amortization of right of use asset

Losses on investments

Gain on revaluation/termination of deferred consideration—gold payments

Contractual gold payments

Gains on investments

Changes in operating assets and liabilities:

Accounts receivable

Income taxes receivable/payable

Prepaid expenses

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Compensation and benefits payable

Income taxes payable

Operating lease liabilities

Accounts payable and other liabilities

Net cash provided by operating activities

Net cash provided by/(used in) operating activities

Cash flows from investing activities:

Purchase of financial instruments owned, at fair value

Purchase of investments

Cash paid—software development

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Proceeds from the sale of financial instruments owned, at fair value

Proceeds from the exit from investment in Securrency, Inc.

Proceeds from held-to-maturity securities maturing or called prior to maturity

Receipt of contingent consideration—Sale of Canadian ETF business

Acquisition of Securrency Transfers, Inc.

(net of cash acquired)

Net cash (used in)/provided by investing activities

Cash flows from financing activities:

Repurchase of Series A Preferred Stock

Repurchase and maturity of convertible notes (Note 10)

Shares repurchased

Common stock repurchased

Dividends paid

Issuance costs—convertible notes

Repurchase costs—Series A Preferred Stock

Proceeds from the issuance of convertible notes (Note 10)

Termination of deferred consideration—gold payments

Issuance costs—Series C Preferred Stock

Excise taxes paid on common stock repurchased

Net cash used in financing activities

Increase/(decrease) in cash flow due to changes in foreign exchange rate

Net increase/(decrease) in cash, cash equivalents and restricted cash

Net decrease in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash—beginning of year

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Cash paid for interest

WisdomTree, Inc.

and Subsidiaries

Consolidated Statements of Cash Flows (Continued)

(In Thousands)

NON-CASH INVESTING AND FINANCING ACTIVITIES

On May 10, 2023, the Company issued 13.087

shares of Series C Non-Voting Convertible Preferred Stock (valued at $86,898) in connection with the termination of its deferred consideration—gold

payments obligation.

See Note 9 for additional information.

On June 15, 2023, the Company issued 1,037

shares of common stock (as the conversion option was in the money) in connection with the maturity of $60,000 aggregate principal amount

of 4.25% Convertible Senior Notes.

The accompanying notes

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Organization and Description of Business

WisdomTree, Inc., through its global subsidiaries

(collectively, “WisdomTree” or the “Company”), is a global financial innovator, offering a well-diversified suite

of exchange-traded products (“ETPs”), models, solutions and products leveraging blockchain technology.

Building on its heritage

of innovation, the Company is developing and has launched next-generation digital products, services and structures, including digital

or blockchain-enabled mutual funds (“Digital Funds”) and tokenized assets, as well as its blockchain-native digital wallet,

WisdomTree Prime and institutional platform, WisdomTree Connect.

The Company has the following wholly-owned operating subsidiaries:

WisdomTree, Inc., through its

subsidiaries in the U.S.

and Europe (collectively, “WisdomTree” or the “Company”), is a global financial

innovator, offering a diverse suite of exchange-traded products (“ETPs”), models, solutions and products leveraging

blockchain technology.

Building on its heritage of innovation, the Company has introduced next-generation digital products and

services, including blockchain-enabled mutual funds (“Digital Funds”) and tokenized assets, as well as its

blockchain-native digital wallet, WisdomTree Prime, and institutional platform, WisdomTree Connect.

The Company has the following

wholly-owned operating subsidiaries:

● WisdomTree Asset Management, Inc.

(“WTAM”) is a New York based investment adviser registered with the SEC, providing

investment advisory and other management services to the WisdomTree Trust (“WTT”) and WisdomTree exchange-traded funds (“ETFs”).

The WisdomTree ETFs are issued in the U.S.

is a New York based investment adviser registered with the SEC, providing investment advisory

and other management services to the WisdomTree Trust (“WTT”) and WisdomTree exchange-traded funds (“ETFs”).

WisdomTree ETFs are issued in the U.S.

WTT is a non-consolidated Delaware statutory trust registered with the SEC as an open-end

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WisdomTree Europe Limited is no longer regulated and does not provide any regulated

● WisdomTree Ireland Limited is an Ireland based company authorized by the Central Bank of Ireland providing distribution services

to ManJer, WTMAML and WML.

● WisdomTree Ireland Limited (“WT Ireland”) is an Ireland based company authorized by the Central Bank of Ireland

providing distribution services to ManJer, WTMAML and WML.

● WisdomTree Digital Commodity Services, LLC is a New York based company that serves as the sponsor of the WisdomTree Bitcoin

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with the SEC as an open-end management investment company.

Each Digital Fund uses blockchain technology to maintain a secondary record

of its shares on one or more blockchains (e.g., Stellar or Ethereum), but does not directly or indirectly invest in any assets that rely

on blockchain technology, such as cryptocurrencies.

Each Digital Fund uses a blockchain-integrated recordkeeping system to maintain

a record of its shares on one or more blockchains (e.g., Stellar or Ethereum), but does not directly or indirectly invest in any assets

that rely on blockchain technology, such as cryptocurrencies.

● WisdomTree Digital Movement, Inc.

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● WisdomTree Securities, Inc.

is a New York based limited purpose broker-dealer (i.e., mutual fund retailer), facilitating transactions

in WisdomTree Digital Funds.

is a New York based limited purpose broker-dealer (i.e., mutual fund retailer) registered with

the SEC and FINRA, facilitating transactions in WisdomTree Digital Funds.

● WisdomTree Transfers, Inc.

is a New York based transfer agent registered with the SEC, providing transfer agency and registrar

services for the WisdomTree Digital Funds.

The transfer agent maintains the official record of share ownership in book entry form and

reconciles the official record with the secondary record of ownership of shares on one or more blockchains.

● WisdomTree Digital Trust Company, LLC is a New York based limited liability trust company chartered by the New York State Department

of Financial Services to provide certain digital asset products and services (e.g., custody) via WisdomTree Prime.

services for the Digital Funds.

The transfer agent uses a blockchain-integrated recordkeeping system for the ownership of WisdomTree Digital

● WisdomTree Digital Trust Company, LLC is a New York based limited liability trust company that has been formed to operate as

a limited purpose trust company under New York Banking Law and is licensed to engage in virtual currency business activity by the New

York State Department of Financial Services.

Significant Accounting Policies

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The Company, through its subsidiaries in the

and Europe, is a global financial innovator, offering a well-diversified suite of ETPs, models, solutions and products leveraging

blockchain technology.

The Company conducts business as a single operating segment as an ETP sponsor and asset manager, which is based

upon the Company’s current organizational and management structure, as well as information used by the Company’s Chief Executive

Officer (the chief operating decision maker, or CODM) to allocate resources and other factors.

and Europe, is a global financial innovator, offering a diverse suite of ETPs, models, solutions and products leveraging blockchain

The Company conducts business as a single operating segment as an ETP sponsor and asset manager, which is based upon the Company’s

current organizational and management structure, as well as information used by the Company’s Chief Executive Officer (the chief

operating decision maker, or CODM) to allocate resources and other factors.

Foreign Currency Translation

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for which the Company has a right to invoice.

Contractual Gold Payments

Contractual gold payments were measured and

paid monthly based upon the average daily spot price of gold.

The Company’s obligation to continue making these payments terminated

on May 10, 2023.

Marketing and Advertising

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and reasonable and supportable forecasts to amounts outstanding using the aging method.

Impairment of Long-Lived Assets

The Company performs a review for the impairment

of long-lived assets when events or changes in circumstances indicate that the estimated undiscounted future cash flows expected to be

generated by the assets are less than their carrying amounts or when other events occur which may indicate that the carrying amount of

an asset may not be recoverable.

Financial Instruments Owned and Financial Instruments Sold,

but Not yet Purchased (at Fair Value)

Financial instruments owned and financial instruments

sold, but not yet purchased are financial instruments classified as either trading or available-for-sale (“AFS”).

These financial

instruments are recorded on their trade date and are measured at fair value.

All equity instruments that have readily determinable fair

values are classified by the Company as trading.

Debt instruments are classified based primarily on the Company’s intent to hold

or sell the instrument.

Changes in the fair value of debt instruments classified as trading and AFS are reported in other income/(expenses)

and other comprehensive income, respectively, in the period the change occurs.

Debt instruments classified as AFS are assessed for impairment

on a quarterly basis and an estimate for credit loss is provided when the fair value of the AFS debt instrument is below its amortized

Credit-related impairments are recognized in earnings with a corresponding adjustment to the instrument’s amortized

cost basis if the Company intends to sell the impaired AFS debt instrument or it is more likely than not the Company will be required

to sell the instrument before recovering its amortized cost basis.

Other credit-related impairments are recognized as an allowance with

a corresponding adjustment to earnings.

Impairments resulting from noncredit-related factors are recognized in other comprehensive income.

Amounts recorded in other comprehensive income are reclassified into earnings upon sale of the AFS debt instrument using the specific

identification method.

Securities Held-to-Maturity

The Company accounts for certain of its securities

as held-to-maturity on a trade date basis, which are recorded at amortized cost.

For held-to-maturity securities, the Company has the

intent and ability to hold these securities to maturity and it is not more-likely-than-not that the Company will be required to sell these

securities before recovery of their amortized cost bases, which may be maturity.

Held-to-maturity securities are placed on non-accrual

status when the Company is in receipt of information indicating collection of interest is doubtful.

Cash received on held-to-maturity

securities placed on non-accrual status is recognized on a cash basis as interest income if and when received.

The Company reviews its portfolio of held-to-maturity

securities for impairment on a quarterly basis, recognizing an allowance, if any, by applying an estimated loss rate after consideration

for the nature of collateral securing the financial asset as well as potential future changes in collateral values and historical loss

information for financial assets secured with similar collateral.

Investments in pass-through government-sponsored

enterprises (“GSEs”) are determined to have an estimated loss rate of zero due to an implicit U.S.

government guarantee.

Financial Instruments Owned

Financial instruments owned are financial instruments

classified as either trading or available-for-sale (“AFS”).

These financial instruments are recorded on their trade date and

are measured at fair value.

All equity instruments that have readily determinable fair values are classified by the Company as trading.

Debt instruments are classified based primarily on the Company’s intent to hold or sell the instrument.

Changes in the fair value

of debt instruments classified as trading and AFS are reported in other income/(expenses) and other comprehensive income, respectively,

in the period the change occurs.

Debt instruments classified as AFS are assessed for impairment on a quarterly basis and an estimate for

credit loss is provided when the fair value of the AFS debt instrument is below its amortized cost basis.

Credit-related impairments are

recognized in earnings with a corresponding adjustment to the instrument’s amortized cost basis if the Company intends to sell the

impaired AFS debt instrument or it is more likely than not the Company will be required to sell the instrument before recovering its amortized

Other credit-related impairments are recognized as an allowance with a corresponding adjustment to earnings.

Impairments resulting

from noncredit-related factors are recognized in other comprehensive income.

Amounts recorded in other comprehensive income are reclassified

into earnings upon sale of the AFS debt instrument using the specific identification method.

The Company accounts for equity investments

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Goodwill is allocated to the Company’s

business and European business components.

For impairment testing purposes, these components are aggregated as a single reporting

unit as they fall under the same operating segment and have similar economic characteristics.

and European components.

For impairment testing purposes, these components are aggregated as a single reporting unit as they fall

under the same operating segment and have similar economic characteristics.

Goodwill is assessed for impairment annually

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The Company accounts for its lease obligations

in accordance with ASC Topic 842, Leases (“ASC 842”), which requires the recognition of both (i) a lease liability equal to

the present value of the remaining lease payments and (ii) an offsetting right-of-use asset.

The remaining lease payments are discounted

using the rate implicit in the lease, if known, or otherwise the Company’s incremental borrowing rate.

in accordance with ASC Topic 842, Leases (“ASC 842”), which requires the recognition of both (i) a lease liability

equal to the present value of the remaining lease payments and (ii) an offsetting right-of-use asset.

The remaining lease payments are

discounted using the rate implicit in the lease, if known, or otherwise the Company’s incremental borrowing rate.

After lease commencement,

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The Company has elected to apply this practical expedient to all lease contracts, where applicable.

Deferred Consideration—Gold Payments

Deferred consideration—gold payments represented

the present value of an obligation to pay gold to a third party into perpetuity and was measured using forward-looking gold prices observed

on the CMX exchange, a selected discount rate and perpetual growth rate (Note 9).

Changes in the fair value and settlement of this obligation

were reported as gain on revaluation/termination of deferred consideration—gold payments in the Consolidated Statements of Operations.

Convertible Notes

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Net income available to common stockholders represents net income of the Company reduced by an allocation of earnings to participating

securities, as well as the loss related to the repurchase of the Series A non-voting convertible preferred stock and excise tax on stock

The Series A non-voting convertible preferred stock and Series C non-voting convertible preferred stock (Notes 9 and 11)

and unvested share-based payment awards that contained non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid)

were participating securities while they were outstanding and were included in the computation of EPS pursuant to the two-class method.

Share-based payment awards that do not contain such rights are not deemed participating securities and are included in diluted shares

outstanding (if dilutive).

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid

or unpaid) are participating securities and are included in the computation of EPS pursuant to the two-class method.

Share-based payment

awards that do not contain such rights are not deemed participating securities and are included in diluted shares outstanding (if dilutive).

Diluted EPS is calculated under the treasury

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The treasury stock method includes the dilutive effect of potential common shares

including unvested stock-based awards, the Series A non-voting convertible preferred stock, the Series C non-voting convertible preferred

stock and the convertible notes, if any.

Potential common shares associated with the Series A non-voting convertible preferred stock,

the Series C non-voting convertible preferred stock and the convertible notes were computed under the if-converted method.

Potential common

shares associated with the conversion option embedded in the convertible notes are dilutive when the Company’s average stock price

exceeds the conversion price.

including unvested stock-based awards and the convertible notes, if any.

Potential common shares associated with the convertible notes

are computed under the if-converted method.

Potential common shares associated with the conversion option embedded in the convertible

notes are dilutive when the Company’s average stock price exceeds the conversion price.

The Company accounts for income taxes using

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of other liabilities and other expenses.

Excise taxes on stock repurchases are accounted for as a direct cost of the share repurchase

transaction and reported as a reduction of stockholders’ equity.

Excise taxes on stock repurchases are accounted for as a direct component of the share repurchase

transaction and reported as a reduction of stockholder’s equity.

Recently Issued Accounting Pronouncements

On November 4, 2024, the Financial Accounting

Standards Board (“FASB”) issued ASU 2024-03, Reporting Comprehensive Income—Expense Disaggregation Disclosures ,

which requires additional information about specific expense categories in the notes to financial statements at interim and annual reporting

The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning

after December 15, 2027.

The Company does not anticipate this standard to have a material impact on its financial statements.

Recently Adopted Accounting Pronouncements

On December 14, 2023, the Financial Accounting

Standards Board (“FASB”) issued ASU 2023-09, Improvements to Income Tax Disclosures , which establishes new

income tax disclosure requirements in addition to modifying and eliminating certain existing requirements.

Under the new guidance, entities

must consistently categorize and provide greater disaggregation of information in the rate reconciliation.

They must also further disaggregate

income taxes paid.

The standard is intended to benefit stockholders by providing more detailed income tax disclosures that would be useful

in making capital allocation decisions.

The guidance applies to all entities subject to income taxes and is effective for annual periods

beginning after December 15, 2024.

The guidance will be applied on a prospective basis with the option to apply the standard retrospectively.

Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Improvements to Income

Tax Disclosures , which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing

requirements.

Under the new guidance, entities must consistently categorize and provide greater disaggregation of information in the rate

reconciliation.

They must also further disaggregate income taxes paid.

The standard is intended to benefit stockholders by providing more

detailed income tax disclosures that would be useful in making capital allocation decisions.

The guidance applies to all entities subject

to income taxes and is effective for annual periods beginning after December 15, 2024.

The guidance will be applied on a prospective basis

with the option to apply the standard retrospectively.

Early adoption is permitted.

The Company is considering early adoption of this standard in connection with the filing of its Annual Report

on Form 10-K for the year ending December 31, 2024.

Recently Adopted Accounting Pronouncements

On January 1, 2024, the Company adopted ASU

2023-07, Segment Reporting—Improvements to Reportable Segment Disclosures , which requires public entities to provide

disclosures of significant segment expenses and other segment items.

The guidance requires public entities to provide in interim periods

all disclosures about a reportable segment’s profit or loss and assets that are currently required annually and also applies to

public entities with a single reportable segment.

Entities are permitted to disclose more than one measure of a segment’s profit

or loss if such measures are used by the CODM to allocate resources and assess performance, as long as at least one of those measures

is determined in a way that is most consistent with the measurement principles used to measure the corresponding amounts in the consolidated

financial statements.

The guidance is applied retrospectively to all periods presented in financial statements, unless it is impracticable,

and is effective for fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024.

26 for additional information.

On January 1, 2024, the Company early adopted

ASU 2023-08, Accounting for and Disclosure of Crypto Assets , which contains final guidance requiring all entities to measure certain

crypto assets at fair value each reporting period and to reflect changes from remeasurement in net income.

Entities are required to present

crypto assets measured at fair value separately from other intangible assets on the balance sheet and present changes from the remeasurement

of crypto assets separately from changes in the carrying amounts of other intangible assets in the income statement.

Entities are required

to provide interim and annual disclosures about the types of crypto assets they hold and any changes in their holdings of crypto assets.

The guidance is effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years.

adoption of this standard did not have a material impact on the Company’s financial statements.

The Company adopted this standard on a prospective

basis for the year ended December 31, 2024.

See Note 18 for additional information.

Cash, Cash Equivalents and Restricted Cash

Of the total cash, cash equivalents and restricted

cash of $ 176,483 and $ 129,305 at September 30, 2024 and December 31, 2023, respectively, $ 148,707 and $ 116,895 were held at three financial

cash of $ 170,373 and $ 181,191 at March 31, 2025 and December 31, 2024, respectively, $ 156,726 and $ 155,871 were held at three financial

institutions.

At September 30, 2024 and December 31, 2023, cash equivalents were approximately $ 58,371 and $ 50,226 , respectively.

At March 31, 2025 and December 31, 2024, cash equivalents were approximately $ 90,896 and $ 48,336 , respectively.

Certain of the Company’s subsidiaries

are required to maintain a minimum level of regulatory capital, generally satisfied by cash on hand, which was $ 35,580 and $ 39,423 at

September 30, 2024 and December 31, 2023, respectively.

Of these amounts, $ 13,576 and $ 0 , at September 30, 2024 and December 31, 2023,

respectively, was restricted cash, which is required to be maintained in a separate account with withdrawal and usage restrictions in

compliance with regulatory obligations.

March 31, 2025 and December 31, 2024, respectively.

Of these amounts, $ 13,499 and $ 13,403 , at March 31, 2025 and December 31, 2024, respectively,

was restricted cash, which is required to be maintained in a separate account with withdrawal and usage restrictions in compliance with

regulatory obligations.

Fair Value Measurements

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In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.

In such cases, for

disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined

In such cases,

for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined

based on the lowest level input that is significant to the fair value measurement in its entirety.

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of the Company’s assets and liabilities measured at fair value.

During the three and nine months ended September 30, 2024 and 2023,

there were no transfers between Levels 2 and 3.

September 30, 2024

During the three months ended March 31, 2025 and 2024, there were

no transfers between Levels 2 and 3.

March 31, 2025

Recurring fair value measurements:

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Other assets—seed capital (WisdomTree Digital Funds):

Non-recurring fair value measurements:

Fnality International Limited—Series B-1 Preference Shares (1)

_____________________________

(1) Fair value determined on June 17, 2024.

Not included above are prospective changes in value due to fluctuations

in the British pound to U.S.

dollar exchange rate.

Other investments

December 31, 2024

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Other assets—seed capital (WisdomTree Digital Funds):

Other investments

Non-recurring fair value measurements:

Fnality International Limited—Series B-1 Preference Shares (1)

Other investments (2)

_____________________________

(1) Fair value determined on October 31, 2023.

(2) Fair value determined on September 30, 2023.

(1) Fair value determined on June 17, 2024.

Not included above are prospective

changes in value due to fluctuations in the British pound to U.S.

dollar exchange rate.

Recurring Fair Value Measurements – Methodology

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Financial instruments owned (Note 5)

– Financial instruments owned are investments in ETFs, pass-through GSEs, U.S.

treasuries, equities and fixed income.

ETFs and equities

are generally traded in active, quoted and highly liquid markets and are therefore classified as Level 1 in the fair value hierarchy.

Pricing of U.S.

treasuries, pass-through GSEs and fixed income includes consideration given to date of issuance, collateral characteristics

and market assumptions related to yields, credit risk and timing of prepayments and may be classified as either Level 1 or Level 2.

– Financial instruments owned are investments in ETFs, pass-through GSEs, equities and fixed income.

ETFs and equities are generally

traded in active, quoted and highly liquid markets and are therefore classified as Level 1 in the fair value hierarchy.

Pricing of pass-through

GSEs and fixed income includes consideration given to date of issuance, collateral characteristics and market assumptions related to yields,

credit risk and timing of prepayments and may be classified as either Level 1 or Level 2.

Fair Value Measurements classified as Level

3 – The following table presents a reconciliation of beginning and ending balances of recurring fair value measurements classified

These instruments consist of the following:

Three Months Ended

Other Investments:

Beginning balance

Net unrealized gains (1)

Ending balance

_____________________________

(1) Recorded in other losses and gains, net in the Consolidated Statements of Operations.

Financial instruments owned

These instruments consist of the following:

September 30,

Financial instruments owned

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The Company recognized net trading gains on

financial instruments owned that were still held at the reporting dates of $ 680 and $ 1,958 during the three months ended September 30,

2024 and 2023, respectively, and $ 3,023 and $ 648 during the nine months ended September 30, 2024 and 2023, respectively, which were recorded

in other losses, net, in the Consolidated Statements of Operations.

Securities Held-to-Maturity

The following table is a summary of the Company’s

securities held-to-maturity:

September 30,

Debt instruments:

Pass-through GSEs (amortized cost)

During the nine months ended September 30, 2024

and 2023, the Company received proceeds of $ 18 and $ 22 , respectively, from held-to-maturity securities maturing or being called prior

The following table summarizes unrealized losses

and fair value (classified as Level 2 within the fair value hierarchy) of securities held-to-maturity:

September 30,

Cost/amortized cost

Gross unrealized losses

An allowance for credit losses was not provided

on the Company’s held-to-maturity securities as all securities are investments in pass-through GSEs which are determined to have

an estimated loss rate of zero due to an implicit U.S.

government guarantee.

The following table sets forth the maturity

profile of the securities held-to-maturity;

however, these securities may be called prior to the maturity date:

September 30,

Due within one year

Due one year through five years

Due five years through ten years

Due over ten years

The following table sets forth the Company’s

September 30, 2024

financial instruments owned that were still held at the reporting dates of $ 545 and $ 1,904 during the three months ended March 31, 2025

and 2024, respectively, which were recorded in other losses and gains, net, in the Consolidated Statements of Operations.

The following is a summary of the Company’s

March 31, 2025

December 31, 2024

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Fnality International Limited—Series B-1 Preference Shares

Other investments

Fnality International Limited

The Company owns approximately 5.4 % (or

on a fully-diluted basis) of capital stock of Fnality International Limited (“Fnality”), a company incorporated in England

and Wales and focused on creating a peer-to-peer digital wholesale settlement ecosystem comprised of a consortium of financial institutions,

offering real time cross-border payments from a single pool of liquidity.

The Company’s ownership interest is represented by 2,340,378

Series B-1 Preference Shares, resulting from the conversion of its investment of £ 6,000 ($ 8,091 ) in convertible notes upon

Fnality’s qualified equity financing which occurred in October 2023.

The Series B-1 Preference Shares carry a 1.0x liquidation preference,

are convertible into ordinary shares at the option of the Company and contain various rights and protections.

4.7 % on a fully-diluted basis) of capital stock of Fnality International Limited (“Fnality”), a company incorporated

in England and Wales and focused on creating a peer-to-peer digital wholesale settlement ecosystem comprised of a consortium of

financial institutions, offering real time cross-border payments from a single pool of liquidity.

The Company’s ownership

interest is represented by 2,340,378 Series B-1 Preference Shares, resulting from the conversion of its investment of

£ 6,000 ($ 8,091 ) in convertible notes upon Fnality’s qualified equity financing which occurred in October 2023.

The Series B-1 Preference Shares carry a 1.0x liquidation preference, are convertible into ordinary shares at

the option of the Company and contain various rights and protections.

This investment is accounted for under the measurement

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valuation approach (classified as Level 3 in the fair value hierarchy):

2024 December

Expected volatility 60 %

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Net unrealized gains/(losses) recognized on

this investment were $ 476 and ($ 920 ) during the three and nine months ended September 30, 2024, respectively, inclusive of changes in

the British pound to U.S.

this investment were $ 247 and ($ 78 ) during the three months ended March 31, 2025 and 2024, respectively, inclusive of changes in the British

pound to U.S.

dollar exchange rate.

These results are recorded in other losses, net on the Consolidated Statements of Operations.

These results are recorded in other losses and gains, net on the Consolidated Statements of Operations.

There was no impairment recognized on this investment

during the three and nine months ended September 30, 2024 based upon a qualitative assessment.

during the three months ended March 31, 2025 based upon a qualitative assessment.

Other Investments

On October 2, 2024, the Company purchased an

investment of $ 674 .

During the three months ended March 31, 2025, the Company recognized an unrealized gain of $ 68 , recorded in other

losses and gains, net in the Consolidated Statements of Operations.

Fixed Assets, Net

The following table summarizes fixed assets:

September 30,

accumulated depreciation

Deferred Consideration—Gold Payments

Deferred consideration—gold payments represented

an obligation the Company assumed in connection with its acquisition of the European exchange-traded commodity, currency and leveraged-and-inverse

business of ETFS Capital Limited (“ETFS Capital”) which occurred on April 11, 2018.

The obligation was for fixed payments

to ETFS Capital of physical gold bullion equating to 9,500 ounces of gold per year through March 31, 2058 and then subsequently reduced

to 6,333 ounces of gold per year continuing into perpetuity (“contractual gold payments”).

ETFS Capital continued to pass

through the payments to other parties to meet its payment obligations under prior royalty agreements, including to Gold Bullion Holdings

(Jersey) Limited (“GBH”), a subsidiary of the World Gold Council (“WGC”), Graham Tuckwell (“GT”),

and Rodber Investments Limited (“RIL”), an entity controlled by GT, who is also the Chairman of ETFS Capital.

On May 10, 2023, the Company terminated its

contractual gold payments obligation for aggregate consideration totaling $ 136,903 pursuant to a Sale, Purchase and Assignment Deed (the

“SPA Agreement”) with WisdomTree International Holdings Ltd, Electra Target HoldCo Limited, ETFS Capital, WGC, GBH, GT and

Under the terms of the transaction, GBH received approximately $ 4,371 in cash and 13,087 shares of Series C Non-Voting Convertible

Preferred Stock of the Company, $ 0.01 par value per share, convertible into 13,087,000 shares of the Company’s common stock (see

Note 12 for additional information), and RIL received approximately $ 45,634 in cash.

During the three and nine months ended September

30, 2023, the Company recognized the following in respect of deferred consideration—gold payments:

September 30,

Contractual gold payments

Contractual gold payments — gold ounces paid

Gain on revaluation/termination of deferred consideration — gold payments

Convertible Notes

The Company has the following convertible notes

outstanding as of September 30, 2024:

outstanding as of March 31, 2025:

● $ 150,000 in aggregate principal amount of 3.25 % Convertible Senior Notes due 2026 (the “2026 Notes”);

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Each class of notes were issued pursuant to

indentures dated as of the issuance dates between the Company and either U.S.

Bank National Association or U.S Bank Trust Company, National

Association, as trustee (or its successor in interest, the “Trustee”), in private offerings to qualified institutional buyers

indentures dated as of the issuance dates between the Company and U.S Bank Trust Company, National Association, as trustee (either initially

or as successor to U.S.

Bank National Association, the “Trustee”), in private offerings to qualified institutional buyers

pursuant to Rule 144A under the Securities Act of 1933, as amended.

In connection with the issuance of the 2029

Notes, the Company repurchased $ 104,155 in aggregate principal amount of the 2028 Notes.

As a result of this repurchase, the Company recognized

a loss on extinguishment of $ 30,632 during the three and nine months ended September 30, 2024.

As of September 30, 2024, the Company had an

aggregate principal amount of $ 520,845 outstanding of the 2026 Notes, the 2028 Notes and the 2029 Notes (collectively, the “Convertible

As of March 31, 2025, the Company had an aggregate

principal amount of $ 520,845 outstanding of the 2026 Notes, the 2028 Notes and the 2029 Notes (collectively, the “Convertible Notes”).

Key terms of the Convertible Notes are as follows:

2026 Notes 2028 Notes 2029 Notes

Principal outstanding $ 150,000 $ 25,845 $ 345,000

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Convertible Notes to be converted.

At its election, the Company will also settle its conversion obligation in excess of the aggregate

At its election, the Company will also settle the conversion obligation in excess of the aggregate

principal amount of the Convertible Notes being converted in either cash, shares of its common stock or a combination of cash and shares

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144.9275 shares of the Company’s common stock per $ 1,000 principal amount of the 2029 Notes, the 2028 Notes and the 2026 Notes,

respectively (the equivalent of 61,826,817 shares of the Company’s common stock), subject to adjustment.

respectively (the equivalent of 61,826,817 shares of the Company’s common stock based on the aggregate principal amount of Convertible

Notes outstanding), subject to adjustment.

● Seniority and Security:

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The following table provides a summary of the

Convertible Notes at September 30, 2024 and December 31, 2023:

September 30, 2024

Convertible Notes at March 31, 2025 and December 31, 2024:

March 31, 2025

December 31, 2024

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(1) Includes amortization of the issuance costs and premium.

Interest expense on the Convertible Notes was

$ 4,330 and $ 11,256 respectively, during the three and nine months ended September 30, 2024 and $ 3,461 and $ 11,484 , respectively, during

the comparable periods in 2023.

Interest payable of $ 3,151 and $ 2,391 at September 30, 2024 and December 31, 2023, respectively, is included

in accounts payable and other liabilities on the Consolidated Balance Sheets.

Interest expense on the Convertible Notes during

the three months ended March 31, 2025 and 2024 was $ 4,986 and $ 3,462 , respectively.

Interest payable of $ 3,058 and $ 5,107 at March 31,

2025 and December 31, 2024, respectively, is included in accounts payable and other liabilities on the Consolidated Balance Sheets.

The fair value of the Convertible Notes (classified

as Level 2 in the fair value hierarchy) was $ 553,602 and $ 281,897 at September 30, 2024 and December 31, 2023, respectively.

as Level 2 in the fair value hierarchy) was $ 531,340 and $ 571,031 at March 31, 2025 and December 31, 2024, respectively.

The if-converted

value of the 2028 Notes was $ 27,064 at September 30, 2024.

The if-converted value of the 2026 Notes and the 2029 Notes did not exceed

the principal amount at September 30, 2024.

The if-converted value of the Convertible Notes did not exceed the principal amount at December

Series A Preferred Stock

On August 13, 2024, the Company repurchased

all of its then-outstanding Series A Non-Voting Convertible Preferred Stock (the “Series A Preferred Stock”), which was convertible

into 14,750,000 shares of the Company’s common stock from ETFS Capital for aggregate cash consideration of $ 143,812 (or $ 9.75 per

These shares were previously issued in April 2018, in connection with the completion of the acquisition by the Company of the

European exchange-traded commodity, currency and leveraged-and-inverse business of ETFS Capital (the “ETFS Acquisition”) and

were carried at $ 132,750 , which was based on the closing price of the Company’s common stock on April 10, 2018 of $ 9.00 per share,

the trading day prior to the closing of the transaction.

GAAP, the premium paid on repurchase

represents a return similar to a dividend to the preferred stockholder and is required to be recorded to retained earnings along with

the related transaction costs.

During the three and nine months ended September 30, 2024, the Company recorded a $ 11,375 reduction to

retained earnings in connection with this repurchase.

The following is a summary of the Series A Preferred

Stock balance:

September 30,

Issuance of Series A Preferred Stock

Issuance costs

Series A Preferred Stock—carrying value

Cash dividends declared per share (quarterly)

The Company previously classified the Series

A Preferred Stock as temporary equity which is required for redeemable instruments for which redemption triggers are outside of the issuer’s

ETFS Capital had the right to redeem all the Series A Preferred Stock specified to be converted during the period of time specified

in the Series A Certificate of Designations in the event that:

(a) the number of shares of the Company’s common stock authorized

by its certificate of incorporation was insufficient to permit the Company to convert all of the Series A Preferred Stock requested by

ETFS Capital to be converted;

or (b) ETFS Capital did not, upon completion of a change of control of the Company, receive the same

amount per share of Series A Preferred Stock as it would have received had each outstanding share of Series A Preferred Stock been converted

into common stock immediately prior to the change of control.

However, the Company would not have been obligated to make any such redemption

payments to the extent such payments would have been a breach of any covenant or obligation the Company owed to any of its secured creditors

or is otherwise prohibited by applicable law.

Any such redemption would have been at a price

per share of Series A Preferred Stock equal to the dollar volume-weighted average price for a share of common stock for the 30-trading

day period ending on the date of such attempted conversion or change of control, as applicable, multiplied by 1,000.

Such redemption payment

would have been made in one payment no later than 10 business days following the last day of the Company’s first fiscal quarter

that began on a date following the date ETFS Capital exercised such redemption right.

The redemption value of the Series A Preferred Stock

was $ 96,869 at December 31, 2023.

value of the Convertible Notes did not exceed the principal amount at March 31, 2025.

The if-converted value of the 2028 Notes was $ 28,446

at December 31, 2024.

The if-converted value of the 2026 Notes and the 2029 Notes did not exceed the principal amount at December 31,

Payable to Gold Bullion Holdings (Jersey) Limited (“GBH”)

On November 20, 2023, the Company repurchased

its Series C Non-Voting Convertible Preferred Stock, par value $ 0.01 per share (the “Series C Preferred Stock”) which was

convertible into 13,087,000 shares of the Company’s common stock, from GBH, a subsidiary of WGC, for aggregate cash consideration

of approximately $ 84,411 .

Under the terms of the transaction, the Company paid GBH $ 40,000 on the closing date, with the remainder of

the purchase price payable in equal, interest-free installments on the first, second and third anniversaries of the closing date.

implied price per share was $ 6.02 when considering the interest-free financing element of the transaction.

The investor rights agreement

that the Company and GBH entered into in May 2023 in connection with the issuance of the Series C Preferred Stock, which provided GBH

with certain rights and obligations with respect to the shares, including registration rights, was terminated in this transaction.

all of its then-outstanding Series C Non-Voting Convertible Preferred Stock, par value $ 0.01 per share (the “Series C Preferred

Stock”) which was convertible into 13,087,000 shares of the Company’s common stock, from GBH, a subsidiary of the World Gold

Council, for aggregate cash consideration of approximately $ 84,411 .

Under the terms of the transaction, the Company has paid GBH $ 54.8

million to date, with the remainder of the purchase price payable in equal, interest-free installments on the second and third anniversaries

of the closing date.

The implied price per share was $ 6.02 when considering the interest-free financing element of the transaction.

investor rights agreement that the Company and GBH entered into in May 2023 in connection with the issuance of the Series C Preferred

Stock, which provided GBH with certain rights and obligations with respect to the shares, including registration rights, was terminated

in this transaction.

GAAP, the obligation was recorded

3 unchanged sentences

payable was valued at $ 38,835 on the closing date and the carrying value of this obligation is as follows:

September 30,

Interest expense recognized was $ 697 and $ 2,039 ,

respectively, during the three and nine months ended September 30, 2024 and $0 during the comparable periods in 2023 and is included as

a component of total interest expense recognized on the Consolidated Statements of Operations.

Interest expense recognized during the three

months ended March 31, 2025 and 2024 was $ 455 and $ 666 , respectively, and is included as a component of total interest expense recognized

on the Consolidated Statements of Operations.

The Company has entered into operating leases

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The Company has no finance leases.

The following table

provides additional information regarding the Company’s leases:

The following table provides additional information

regarding the Company’s leases:

Three Months Ended

September 30,

Nine Months Ended

September 30,

2024 2023 2024 2023

Operating lease cost $ 326 $ 324

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The following table discloses future minimum

lease payments at September 30, 2024 with respect to the Company’s operating lease liabilities:

lease payments at March 31, 2025 with respect to the Company’s operating lease liabilities:

Remainder of 2025

2027 and thereafter

Total future minimum lease payments (undiscounted)

The following table reconciles the future minimum

lease payments (disclosed above) at September 30, 2024 to the operating lease liabilities recognized in the Company’s Consolidated

Balance Sheets:

lease payments (disclosed above) at March 31, 2025 to the operating lease liabilities recognized in the Company’s Consolidated Balance

Amounts recognized in the Company’s Consolidated Balance Sheets

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and investigations by regulatory authorities as well as legal proceedings arising in the ordinary course of business.

SEC ESG Settlement

On August 5, 2024, WTAM received a Wells Notice

from the staff (the “Staff”) of the SEC advising WTAM that the Staff had made a preliminary determination to recommend that

the SEC file an enforcement action against WTAM alleging violations of certain provisions of the U.S.

federal securities laws relating

to three exchange-traded series of WisdomTree Trust managed by WTAM that pursued ESG-focused strategies (collectively, the “Funds”).

The Funds, which were launched in March 2020 and were liquidated in February 2024, collectively had monthly average cumulative assets

under management of approximately $ 119 million throughout their lifetime as ESG-named funds.

Without admitting or denying the SEC’s

allegations, WTAM agreed to resolve the matter by consenting to the entry of an Order by the SEC, which was announced publicly on October

21, 2024, in which WTAM agreed to cease and desist from committing or causing any violations and any future violations of Sections 206(2)

and 206(4) of the Investment Advisers Act of 1940, as amended, Rules 206(4)-7 and 206(4)-8 thereunder, and Section 34(b) of the Investment

Company Act of 1940, as amended, and to pay a civil money penalty of $ 4,000 (the “SEC ESG Settlement”).

This amount has been

reported in other losses, net on the Consolidated Statements of Operations during the three and nine months ended September 30, 2024.

Excluding the penalty, the Company expects that

all legal and other related expenses incurred by WTAM in connection with the matter will be covered by insurance, less a $ 1,000 deductible.

These expected covered expenses totaled $ 3,661 and $ 4,114 , respectively, during the three and nine months ended September 30, 2024 and

have been reported in other revenue on the Consolidated Statements of Operations.

Closure of the WisdomTree WTI Crude Oil 3x Daily Leveraged

Between December 2020 and March 2022,

WMAI, WTMAML, WTUK and/or WisdomTree Ireland Limited (“WT Ireland”) were served with seven separate writs of summons

to appear before the Courts of Milan, Udine or Turin, Italy by investors seeking damages resulting from the closure of the

WisdomTree WTI Crude Oil 3x Daily Leveraged ETP (“3OIL”) in March 2020.

The product was dependent on the receipt of

payments from a swap provider to satisfy payment obligations to the investors.

Due to an extreme adverse move in oil futures

relative to the oil futures’ closing price, the swap contract underlying 3OIL was terminated by the swap provider, which

resulted in the compulsory redemption of 3OIL, all in accordance with the prospectus.

Since February 2022, five of the seven

actions have been resolved in the Company’s favor, of which two are subject to appeal.

Total damages sought by all investors

related to the two remaining open and two appealed claims, including an appealed claim for total damages of € 7,830 ($ 8,740 ),

were approximately € 19,130 ($ 21,360 ) at September 30, 2024.

Between December 2020 and December 2024, WMAI,

WTMAML, WTUK and/or WT Ireland were served with eight separate writs of summons to appear before the Courts of Milan, Udine or Turin,

Italy by investors seeking damages resulting from the closure of the WisdomTree WTI Crude Oil 3x Daily Leveraged ETP (“3OIL”)

in March 2020.

The product was dependent on the receipt of payments from a swap provider to satisfy payment obligations to the investors.

Due to an extreme adverse move in oil futures relative to the oil futures’ closing price, the swap contract underlying 3OIL was

terminated by the swap provider, which resulted in the compulsory redemption of 3OIL, all in accordance with the prospectus.

Since February 2022, six of the eight actions

have been resolved in the Company’s favor, of which three have been appealed.

Total damages sought by all investors related to the

remaining open and appealed claims were approximately € 17,850 ($ 19,330 ) at March 31, 2025, of which € 15,240 ($ 16,510 ) relates

to three appealed claims.

Additionally, in July 2023, WT Ireland received

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The claim is in its preliminary stages and a writ of summons has not been served.

The Company continues to assess the open claims

with its external counsel.

The Company expects that losses, if any, arising from these claims will be covered under its insurance policies,

less a $ 500 deductible.

An accrual has not been made with respect to these matters at September 30, 2024 and December 31, 2023.

The Company continues to assess the open and

appealed claims with its external counsel.

The Company expects that losses, if any, arising from these claims will be covered under its

insurance policies, less a $ 500 deductible.

An accrual has not been made with respect to these matters at March 31, 2025 and December

Variable Interest Entities

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the Company’s variable interests in non-consolidated VIEs:

September 30,

Carrying Amount — Assets:

Fnality Series B-1 Preference Shares (Note 6)

Other investments

Maximum exposure to loss

3 unchanged sentences

Three Months Ended

September 30,

Nine Months Ended

September 30,

Revenues from contracts with customers:

Advisory fees

Other revenues

Total operating revenues

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A significant portion of the Company’s

revenues from contracts with customers are derived primarily from investment advisory agreements with related parties (Note 17).

revenues from contracts with customers is derived primarily from investment advisory agreements with related parties (Note 14).

advisory fees are recognized over time, are earned from the Company’s ETPs and are calculated based on a percentage of the ETPs’

8 unchanged sentences

contracts with customers, all of which are investment advisory agreements with related parties.

Other revenues includes revenues the Company

Other revenues include revenues the Company

earns from swap providers associated with certain of the Company’s European listed ETPs, the nature of which are based on a percentage

9 unchanged sentences

Three Months Ended

September 30,

Nine Months Ended

September 30,

Revenues from contracts with customers:

24 unchanged sentences

from related parties which are included as a component of accounts receivable in the Consolidated Balance Sheets:

September 30,

Receivable from WTT

9 unchanged sentences

Three Months Ended

September 30,

Nine Months Ended

September 30,

Advisory services provided to WTT

3 unchanged sentences

The Company also has investments in certain

WisdomTree products of approximately $ 81,202 and $ 52,566 at September 30, 2024 and December 31, 2023, respectively.

This includes $ 20,524

and $ 18,308 , respectively, of seed investments in certain affiliated Digital Funds advised by WT Digital Management, referred to herein

as “other assets–seed capital.” The Company also has invested an additional $ 6,000 in the WisdomTree Government Money

Market Digital Fund at September 30, 2024.

WisdomTree products of $ 89,872 and $ 89,822 at March 31, 2025 and December 31, 2024, respectively.

This includes $ 20,848 and $ 20,866 , respectively,

of seed investments in certain consolidated affiliated Digital Funds advised by WT Digital Management, referred to herein as “other

assets–seed capital.” As of March 31, 2025, the Company has also invested an additional $ 6,050 in the WisdomTree Government

Money Market Digital Fund.

Net unrealized and realized gains related to

trading WisdomTree products were $ 554 and $ 2,278 , respectively, during the three and nine months ended September 30, 2024 and ($ 591 ) and

$ 250 , respectively, during the comparable periods in 2023.

Such gains are recorded in other losses, net on the Consolidated Statements

of Operations.

trading WisdomTree products were $ 647 and $ 1,945 , respectively, during the three months ended March 31, 2025 and 2024.

Such gains are

recorded in other losses and gains, net on the Consolidated Statements of Operations.

Stock-Based Awards

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target number of PRSUs granted, as follows:

● If the relative TSR is below the

25 th percentile, then 0% of the target number of PRSUs granted will vest;

● If the relative TSR is

at the 25 th percentile, then 50% of the target number of PRSUs granted will vest;

● If the relative TSR is above the

25 th percentile, then linear scaling is applied such that the percent of the target number of PRSUs vesting is 100% at the

50 th percentile and capped at 200% of the target number of PRSUs granted for performance at the 85 th percentile;

● If the Company’s TSR is

negative, the target number of PRSUs vesting is capped at 100% regardless of the relative TSR percentile.

relative TSR is below the 25 th percentile, then 0% of the target number of PRSUs granted will vest;

relative TSR is at the 25 th percentile, then 50% of the target number of PRSUs granted will vest;

relative TSR is above the 25 th percentile, then linear scaling is applied such that the percent of the target number of PRSUs

vesting is 100% at the 50 th percentile and capped at 200% of the target number of PRSUs granted

for performance at the 85 th

Company’s TSR is negative, the target number of PRSUs vesting is capped at 100% regardless of the relative TSR percentile.

Stock-based compensation expense was $ 6,238

and $ 15,952 , respectively, during the three and nine months ended September 30, 2024 and $ 3,916 and $ 12,422 , respectively, during the

comparable periods in 2023.

and $ 5,163 , respectively, during the three months ended March 31, 2025 and 2024.

A summary of unrecognized stock-based compensation

expense and average remaining vesting period is as follows:

September 30, 2024

March 31, 2025

Weighted-Average

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Employees and directors $ 31,183 1.39

A summary of stock-based compensation award activity

(shares) during the three months ended September 30, 2024 is as follows:

Balance at July 1, 2024

Balance at September 30, 2024

A summary of stock-based compensation award

activity (shares) during the three months ended March 31, 2025 is as follows:

Balance at January 1, 2025

( 2,352,511 )

Stock dividends accrued

Balance at March 31, 2025

_____________________________

(1) Represents the target number of PRSUs granted and outstanding.

The number of PRSUs that ultimately vest ranges from 0 % to 200 % of this

A Monte-Carlo simulation was used to value these awards using the following assumptions for the Company and the peer group:

beginning 90-day average stock prices;

(ii) valuation date stock prices;

(iii) historical stock price volatilities ranging from 24.47 %

to 36.61 % (average 31.38 %);

(iv) correlation coefficients based upon the price data used to calculate the historical volatilities;

a risk free interest rate of 4.28 %;

and (vi) an expected dividend yield of 0.00 %.

(2) The payout on PRSUs vesting in January 2025 was 200 %.

(3) Includes 103,829 deferred RSUs that have vested.

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5”) (as amended, the “Stockholder Rights Agreement”).

At the Company’s

2024 annual meeting of stockholders held on June 12, 2024, the Company’s stockholders ratified the adoption by the Board of Directors

of the extension of the Stockholder Rights Agreement.

On March 18, 2024, the Company entered into

Amendment No.

3, which extended the Stockholder Rights Agreement, such that the Rights will now expire on the close of business on March

Amendment No.

3 also changed the definition of “Exercise Price” in the Stockholder Rights Agreement from $ 32.00

to $ 45.00 per Unit (as defined below) to account for the difference in share price between when the Stockholder Rights Agreement was originally

adopted and when it was extended.

Pursuant to the terms of the Stockholder Rights

Agreement, the Board of Directors declared a dividend distribution of (i) one Right (as defined below) for each outstanding share of common

stock, par value $ 0.01 per share, of the Company’s common stock and (ii) 1,000 Rights for each outstanding share of the Company’s

Series A Preferred Stock, to stockholders of record as of the close of business on March 28, 2023 (the “Record Date”).

addition, one Right will automatically attach to each share of common stock and 1,000 Rights will automatically attach to each share of

Series A Preferred Stock, in each case, issued between the Record Date and the earlier of the Distribution Date (as defined below) and

the expiration date of the Rights.

Each “Right” entitles the registered holder thereof to purchase from the Company a unit

consisting of one ten-thousandth of a share (a “Unit”) of Series B Junior Participating Cumulative Preferred Stock, par value

$ 0.01 per share, of the Company (the “Series B Preferred Stock”) at a cash exercise price of $ 45.00 per Unit (the “Exercise

Price”), subject to adjustment, under certain conditions specified in the Stockholder Rights Agreement and summarized below.

Initially, the Rights are not exercisable and

are attached to and trade with all shares of common stock and Series A Preferred Stock outstanding as of, and issued subsequent to, the

The Rights will separate from the common stock and Series A Preferred Stock and will become exercisable upon the earlier

of (i) the close of business on the tenth calendar day following the first public announcement that a person or group of affiliated or

associated persons (an “Acquiring Person”) has acquired beneficial ownership of 10 % (or 20 % in the case of passive stockholders

or “13G Investors,” as defined in the Stockholder Rights Agreement) or more of the outstanding shares of common stock, other

than as a result of repurchases of stock by the Company or certain inadvertent actions by a stockholder (the date of such announcement

being referred to as the “Stock Acquisition Date”), or (ii) the close of business on the tenth business day (or such later

day as the Board of Directors may determine) following the commencement of a tender offer or exchange offer that could result upon its

consummation in a person or group becoming an Acquiring Person (the earlier of such dates being herein referred to as the “Distribution

A person or group who beneficially owned 10% or more (or 20% or more in the case of 13G Investors) of the Company’s

outstanding common stock prior to the first public announcement by the Company of the adoption of the Stockholder Rights Agreement will

not trigger the Stockholder Rights Agreement so long as they do not acquire beneficial ownership of any additional shares of common stock

at a time when they still beneficially own 10% or more (or 20% or more in the case of 13G Investors) of such common stock, subject to

certain exceptions as set forth in the Stockholder Rights Agreement.

For purposes of the Stockholder Rights Agreement,

beneficial ownership is defined to include ownership of securities that are subject to a derivative transaction and acquired derivative

Swaps dealers unassociated with any control intent or intent to evade the purposes of the Stockholder Rights Agreement are

excepted from such imputed beneficial ownership.

Pursuant to Amendment No.

1, beneficial ownership did not include the right to vote pursuant

to any agreement, arrangement or understanding with respect to voting on the proposal to approve and ratify the Stockholder Rights Agreement

presented to the Company’s stockholders at the Company’s 2023 annual meeting of stockholders.

Pursuant to Amendment No.

the parties to the SPA Agreement are not deemed to be “Acquiring Persons” solely by virtue of, or as a result of, the parties’

entry into the SPA Agreement, the issuance of the Series C Preferred Stock to GBH, and the performance or consummation of any of the other

transactions contemplated by the SPA Agreement, among other conditions, under the terms and conditions set forth in Amendment No.

to Amendment No.

4, beneficial ownership excludes the right to vote pursuant to any agreement, arrangement or understanding with respect

to voting (i) arising solely from a revocable proxy or consent given in response to a public proxy or consent solicitation, or exempt

solicitation, made pursuant to a written proxy or consent solicitation statement filed with the SEC and that is not also then reportable

on Schedule 13D under the Exchange Act, or (ii) on a proposal to approve and ratify the Stockholder Rights Agreement (as amended from

time to time), including any amendment thereto or extension thereof, presented to the Company’s stockholders at any annual or special

meeting of the Company’s stockholders (including any adjournments or postponements thereof).

Pursuant to Amendment No.

5, the Stockholder

Rights Agreement was amended to (a) remove language stating that (i) the Company has the “exclusive” power and authority to

administer the Stockholder Rights Agreement and (ii) all actions, calculations, interpretations and determinations necessary or advisable

for the administration of the Stockholder Rights Agreement done or made by the Board of Directors of the Company in good faith are final,

conclusive and binding on all parties, and (b) provide that nothing in the Stockholder Rights Agreement shall be deemed to limit or eliminate

the fiduciary duties of the Board of Directors under applicable law.

In the event that a Stock Acquisition Date occurs,

proper provision will be made so that each holder of a Right (other than an Acquiring Person or its associates or affiliates, whose Rights

shall become null and void) will thereafter have the right to receive upon exercise, in lieu of a number of shares of Series B Preferred

Stock, that number of shares of common stock of the Company (or, in certain circumstances, including if there are insufficient shares

of common stock to permit the exercise in full of the Rights, Units of Series B Preferred Stock, other securities, cash or property, or

any combination of the foregoing) having a market value of two times the Exercise Price of the Right (such right being referred to as

the “Subscription Right”).

In the event that, at any time following the Stock Acquisition Date, (i) the Company consolidates

with, or merges with and into, any other person, and the Company is not the continuing or surviving corporation, (ii) any person consolidates

with the Company, or merges with and into the Company and the Company is the continuing or surviving corporation of such merger and, in

connection with such merger, all or part of the shares of common stock are changed into or exchanged for stock or other securities of

any other person or cash or any other property, or (iii) 50 % or more of the Company’s assets or earning power is sold, mortgaged

or otherwise transferred, each holder of a Right (other than an Acquiring Person or its associates or affiliates, whose Rights shall become

null and void) will thereafter have the right to receive, upon exercise, common stock of the acquiring company having a market value equal

to two times the Exercise Price of the Right (such right being referred to as the “Merger Right”).

The holder of a Right will

continue to have the Merger Right whether or not such holder has exercised the Subscription Right.

Rights that are or were beneficially

owned by an Acquiring Person may (under certain circumstances specified in the Stockholder Rights Agreement) become null and void.

The Rights may be redeemed in whole, but not

in part, at a price of $ 0.01 per Right (payable in cash, common stock or other consideration deemed appropriate by the Board of Directors)

by the Board of Directors only until the earlier of (i) the time at which any person becomes an Acquiring Person or (ii) the expiration

date of the Stockholder Rights Agreement.

Immediately upon the action of the Board of Directors ordering redemption of the Rights, the

Rights will terminate and thereafter the only right of the holders of Rights will be to receive the redemption price.

The Stockholder Rights Agreement may be amended

by the Board of Directors in its sole discretion at any time prior to the time at which any person becomes an Acquiring Person.

such time the Board of Directors may, subject to certain limitations set forth in the Stockholder Rights Agreement, amend the Stockholder

Rights Agreement only to cure any ambiguity, defect or inconsistency, to shorten or lengthen any time period, or to make changes that

do not adversely affect the interests of Rights holders (excluding the interests of an Acquiring Person or its associates or affiliates).

Until a Right is exercised, the holder will

have no rights as a stockholder of the Company (beyond those as an existing stockholder), including the right to vote or to receive dividends.

While the distribution of the Rights will not be taxable to stockholders or to the Company, stockholders may, depending upon the circumstances,

recognize taxable income in the event that the Rights become exercisable for shares of common stock, other securities of the Company,

other consideration or for common stock of an acquiring company.

The Stockholder Rights Agreement provides the

holders of the common stock with the ability to exempt an offer to acquire, or engage in another business combination transaction involving,

the Company that is deemed a “Qualifying Offer” (as defined in the Stockholder Rights Agreement) from the terms of the Stockholder

Rights Agreement.

A Qualifying Offer is, in summary, an offer determined by a majority of the independent members of the Board to have

specific characteristics that are generally intended to preclude offers that are coercive, abusive or highly contingent.

Among those characteristics

are that it be:

(i) a fully financed all-cash tender offer or an exchange offer offering shares of common stock of the offeror, or a combination

thereof, for any and all of the common stock;

and (ii) an offer that is otherwise in the best interests of the Company’s stockholders.

The Stockholder Rights Agreement provides additional characteristics necessary for an acquisition offer to be deemed a “Qualifying

Offer,” including if the consideration offered in a proposed transaction is stock of the acquiror.

Pursuant to the Stockholder Rights Agreement,

if the Company receives a Qualifying Offer and the Board of Directors has not redeemed the outstanding Rights or exempted such Qualifying

Offer from the terms of the Stockholder Rights Agreement or called a special meeting of stockholders (the “Special Meeting”)

for the purpose of voting on whether to exempt such Qualifying Offer from the terms of the Stockholder Rights Agreement, in each case

by the end of the 90 business day period following the commencement of such Qualifying Offer, provided such offer remains a Qualifying

Offer during such period, the holders of 10 % of the common stock may request that the Board call a Special Meeting to vote on a resolution

authorizing the exemption of the Qualifying Offer from the terms of the Stockholder Rights Agreement.

If such a Special Meeting is not

held by the 90th business day following the receipt of such a request from stockholders to call a Special Meeting, the Qualifying Offer

will be deemed exempt from the terms of the Stockholder Rights Agreement on the 10th business day thereafter.

On March 18, 2024,

the Company entered into Amendment No.

3, which extended the expiration date of the Stockholder Rights Agreement to the close of business

on March 17, 2025.

At the Company’s 2024 annual meeting of stockholders on June 12, 2024, the Company’s stockholders ratified

the adoption by the Board of Directors of the extension of the Stockholder Rights Agreement.

On March 17, 2025, the Stockholder Rights Agreement expired by its

terms and the associated preferred stock purchase rights to purchase shares of Series B Junior Participating Cumulative Preferred Stock

of the Company (the “Series B Preferred Stock”) expired.

Following the expiration of the Stockholder Rights Agreement, on

March 18, 2025, the Company filed a Certificate of Elimination to its Amended and Restated Certificate of Incorporation, as amended (the

“Charter”), with the Secretary of State of the State of Delaware, eliminating from the Charter all references to the Series

B Preferred Stock set forth in the Company’s Certificate of Designations with respect to its Series B Preferred Stock.

of Series B Preferred Stock were outstanding at the time the Certificate of Elimination was filed.

The Certificate of Elimination became

effective on March 18, 2025.

Earnings Per Share

The following tables set forth reconciliations

of the basic and diluted (loss)/earnings per share computations for the periods presented:

of the basic and diluted earnings per share computations for the periods presented:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Basic Earnings per Share

Net (loss)/income

Loss on repurchase of Series A Preferred Stock

Income distributed to participating securities

Undistributed income allocable to participating securities

Net (loss)/income available to common stockholders — Basic EPS

Net income available to common stockholders — Basic EPS

Weighted average common shares (in thousands)

Basic (loss)/earnings per share

Basic earnings per share

Three Months Ended

September 30,

Nine Months Ended

September 30,

Diluted Earnings per Share

Net (loss)/income available to common stockholders

Net income available to common stockholders

Undistributed income allocable to participating securities

Reallocation of undistributed income allocable to participating securities considered potentially dilutive

Net (loss)/income available to common stockholders — Diluted EPS

Net income available to common stockholders — Diluted EPS

Weighted average diluted shares (in thousands):

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Weighted average diluted shares, excluding participating securities (in thousands)

Diluted (loss)/earnings per share

Diluted (loss)/earnings per share presented

above is calculated using the two-class method as this method results in the lowest diluted earnings per share amount for common stock.

There were no antidilutive non-participating common stock equivalents for the three months ended September 30, 2024 and 2023 and the nine

months ended September 30, 2024.

Total antidilutive non-participating common stock equivalents were 2 for the nine months ended September

30, 2023 (shares herein are reported in thousands).

Diluted earnings per share

Diluted earnings per share presented above is

calculated using the two-class method as this method results in the lowest diluted earnings per share amount for common stock.

Total antidilutive

non-participating common stock equivalents were 1,025 for the three months ended March 31, 2025 (shares herein are reported in thousands).

There were no antidilutive non-participating common stock equivalents for the three months ended March 31, 2024.

There were no potential common shares associated

with the conversion options embedded in the Convertible Notes included in weighted average diluted shares for the three months ended September

30, 2024 as the Company reported a net loss.

There were also no potential common shares during the nine months ended September 30, 2024

and the three and nine months ended September, 30, 2023 as the Company’s average stock price was lower than the conversion price.

The following table reconciles weighted average

diluted shares as reported on the Company’s Consolidated Statements of Operations for the three and nine months ended September

30, 2024 and 2023, which are determined pursuant to the treasury stock method, to the weighted average diluted shares used to calculate

diluted (loss)/earnings per share as disclosed in the table above:

with the conversion options embedded in the Convertible Notes included in weighted average diluted shares for the three months ended March

31, 2025 and 2024 as the Company’s average stock price was lower than the conversion price.

The following table reconciles weighted average diluted shares as reported on the

Company’s Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024, which are determined pursuant

to the treasury stock method, to the weighted average diluted shares used to calculate diluted earnings per share as disclosed in the

Three Months Ended

September 30,

Nine Months Ended

September 30,

Reconciliation of Weighted Average Diluted Shares (in thousands)

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Participating securities:

Weighted average shares of common stock issuable upon conversion of the Series A Preferred Stock (Note 11)

Weighted average shares of common stock issuable upon conversion of the Series C Preferred Stock (Note 9)

Weighted average shares of common stock issuable upon conversion of the Series A Preferred Stock

Potentially dilutive restricted stock awards

Weighted average diluted shares used to calculate diluted earnings per share as disclosed in the table above

_______________________________________

(1) Excludes 7,540 participating securities and 5,276 potentially dilutive non-participating common stock equivalents for the three months

ended September 30, 2024, as the Company reported a net loss for the period (shares herein are reported in thousands).

Effective Income Tax Rate – Three and Nine Months Ended

September 30, 2024

The Company’s effective income tax rate

during the three months ended September 30, 2024 was 216.0 %, resulting in income tax expense of $ 8,351 .

The effective income tax rate

differs from the federal statutory tax rate of 21 % primarily due to non-deductible loss on extinguishment of convertible notes, a non-deductible

civil money penalty of $ 4,000 relating to the SEC ESG Settlement and non-deductible executive compensation.

These items were partly offset

by a lower tax rate on foreign earnings.

The Company’s effective income tax rate

during the nine months ended September 30, 2024 was 35.6 % resulting in income tax expense of $ 21,819 .

The effective income tax rate differs

from the federal statutory tax rate of 21 % primarily due to non-deductible loss on extinguishment of convertible notes, a non-deductible

civil money penalty of $ 4,000 relating to the SEC ESG Settlement and non-deductible executive compensation.

These items were partly offset

by a lower tax rate on foreign earnings.

Effective Income Tax Rate – Three and Nine Months Ended

September 30, 2023

Effective Income Tax Rate – Three Months Ended March

The Company’s effective income tax rate

during the three months ended September 30, 2023 was 31.0 %, resulting in income tax expense of $ 5,836 .

during the three months ended March 31, 2025 was 18.9 %, resulting in income tax expense of $ 5,739 .

The effective income tax rate differs

from the federal statutory tax rate of 21 % primarily due to an increase in the deferred tax asset valuation allowance on losses recognized

on the Company’s investments and non-deductible executive compensation.

from the federal statutory tax rate of 21 % primarily due to tax windfalls associated with the vesting of stock-based compensation awards

and a lower tax rate on foreign earnings.

These items were partly offset by state and local income taxes.

Effective Income Tax Rate – Three Months Ended March

The Company’s effective income tax rate

during the nine months ended September 30, 2023 was 11.4 %, resulting in income tax expense of $ 10,774 .

during the three months ended March 31, 2024 was 20.5 %, resulting in income tax expense of $ 5,701 .

The effective income tax rate differs

from the federal statutory tax rate of 21 % primarily due to a non-taxable gain on revaluation/termination of deferred consideration—gold

payments, a $ 1,353 reduction in unrecognized tax benefits (including interest and penalties) and a lower tax rate on foreign earnings.

These items were partly offset by a non-deductible loss on extinguishment of our convertible notes, an increase in the deferred tax asset

valuation allowance on losses recognized on our investments and non-deductible executive compensation.

from the federal statutory tax rate of 21 % primarily due to the decrease in the deferred tax asset valuation allowance on losses recognized

on the Company’s financial instruments owned, tax windfalls associated with the vesting of stock-based compensation awards and a

lower tax rate on foreign earnings.

These items were partly offset by state and local income taxes.

Income Tax Payments

Disclosed below is a summary of income taxes

paid by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the three months ended March 31, 2025:

March 31, 2025

United States - Federal

United States - State and local

United Kingdom

Deferred Tax Assets

A summary of the components of the Company’s

deferred tax assets at September 30, 2024 and December 31, 2023 is as follows:

September 30,

deferred tax assets at March 31, 2025 and December 31, 2024 is as follows:

Deferred tax assets:

2 unchanged sentences

Stock-based compensation

Interest carryforward.

Goodwill and intangible assets

Software capitalization

Operating lease liabilities

Unrealized losses

Foreign currency translation adjustment

Total deferred tax assets

Operating lease liabilities

Deferred tax assets

Deferred tax liabilities:

Unrealized gains

Unremitted earnings—European subsidiaries

Fixed assets and prepaid assets

Foreign currency translation adjustment

Unrealized gains

Right of use assets—operating leases

Unremitted earnings—European subsidiaries

Total deferred tax liabilities:

Deferred tax liabilities

Total deferred tax assets less deferred tax liabilities

3 unchanged sentences

The Company’s tax effected capital losses

at September 30, 2024 were $ 22,825 .

at March 31, 2025 were $ 18,563 .

These capital losses expire between the years 2025 and 2030.

During the three months ended March 31, 2025,

tax effected capital losses in the amount of $ 3,460 expired.

Net Operating Losses – Europe

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These tax effected NOLs, all of which are carried forward indefinitely,

were $ 1,261 at September 30, 2024.

were $ 998 at March 31, 2025.

Valuation Allowance

The Company’s valuation allowance has

been established on its net capital losses, as it is more-likely-than-not that these deferred tax assets will not be realized.

been established on its net capital losses (net of unrealized gains), as it is more-likely-than-not that these deferred tax assets will

not be realized.

Income Tax Examinations

2 unchanged sentences

tax as well as income tax of multiple state, local and certain foreign jurisdictions.

As of September 30, 2024, with few exceptions, the

Company was no longer subject to income tax examinations by any taxing authority for the years before 2019.

As of March 31, 2025, with few exceptions, the Company

was no longer subject to income tax examinations by any taxing authority for the years before 2020.

Uncertain Tax Positions

There were no unrecognized tax benefits at March

31, 2025 and December 31, 2024.

Undistributed Earnings of Foreign Subsidiaries

ASC 740-30 Income Taxes provides guidance that

ASC 740-30, Income Taxes , provides guidance

companies do not need to recognize tax effects on foreign earnings that are indefinitely reinvested.

The Company repatriates earnings

of its foreign subsidiaries and therefore has recognized a deferred tax liability of $ 80 and $ 186 at September 30, 2024 and December 31,

The Company repatriates

earnings of its foreign subsidiaries and therefore has recognized a deferred tax liability of $ 109 and $ 92 at March 31, 2025 and December

31, 2024, respectively.

3 unchanged sentences

years through April 27, 2025 .

Included under the Company’s share repurchase program are purchases to offset future equity grants

made under the Company’s equity plans and purchases made in open market or privately negotiated transactions.

This authority may

be exercised from time to time, subject to regulatory considerations.

The timing and actual number of shares repurchased will depend on

a variety of factors including price, corporate and regulatory requirements, market conditions and other corporate liquidity requirements

and priorities.

The repurchase program may be suspended or terminated at any time without prior notice.

Shares repurchased under this

program are returned to the status of authorized and unissued on the Company’s books and records.

The Company repurchased 5,704,023 and 6,800,301

shares, respectively, of its common stock under this program during the three and nine months ended September 30, 2024 and 4,566 and 635,653

shares, respectively, during the comparable periods in 2023.

The aggregate cost of the shares repurchased during the three and nine months

ended September 30, 2024 was $ 55,050 and $ 62,870 , respectively, and the aggregate cost of the shares repurchased during the comparable

periods in 2023 was $ 30 and $ 3,570 , respectively.

Shares repurchased under this program were returned to the status of authorized and

unissued on the Company’s books and records.

As of September 30, 2024, $ 33,535 remained under

On February 24, 2025, the Company’s Board of Directors approved another increase of $ 129,158 to the

repurchase program, bringing the total authorization to $ 150,000 , and extended the program’s term for another three years through

April 27, 2028.

Included under the Company’s share repurchase program are purchases to offset future equity grants made under the

Company’s equity plans and purchases made in open market or privately negotiated transactions.

This authority may be exercised from

time to time, subject to regulatory considerations.

The timing and actual number of shares repurchased will depend on a variety of factors

including price, corporate and regulatory requirements, market conditions and other corporate liquidity requirements and priorities.

repurchase program may be suspended or terminated at any time without prior notice.

Shares repurchased under this program are returned

to the status of authorized and unissued on the Company’s books and records.

During the three months ended March 31, 2025

and 2024, the Company repurchased 1,282,498 and 1,096,278 shares of its common stock under this program for an aggregate cost of $ 12,714

and $ 7,820 , respectively.

Shares repurchased under this program were returned to the status of authorized and unissued on the Company’s

books and records.

As of March 31, 2025, $ 149,980 remained under

this program for future purchases.

3 unchanged sentences

Balance at January 1, 2025

Balance at September 30, 2024

Of the total goodwill of $ 86,841 at September

Balance at March 31, 2025

Of the total goodwill of $ 86,841 at March 31,

2025, $ 85,042 is not deductible for tax purposes as the acquisitions that gave rise to the goodwill were structured as stock acquisitions.

4 unchanged sentences

intangible assets which are tested annually for impairment on November 30 th :

Balance at September 30, 2024

Balance at March 31, 2025

ETFS Acquisition

Software development

Balance at September 30, 2024

Balance at March 31, 2025

Balance at December 31, 2024

10 unchanged sentences

a useful life of three years .

The Company recognized amortization expense on internally-developed software of $ 384 and $ 1,070 , respectively,

during the three and nine months ended September 30, 2024 and $ 249 and $ 355 , respectively, during the comparable periods in 2023.

As of September 30, 2024, expected amortization

During the three months ended March 31, 2025 and 2024, the Company recognized amortization expense on internally-developed

software of $ 439 and $ 327 , respectively.

As of March 31, 2025, expected amortization

expense for the unamortized finite-lived intangible assets for the next five years and thereafter is as follows:

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the finite-lived intangible assets is 2.3 years.

Contingent Payments

Sale of Canadian ETF Business

During the three and nine months ended September

30, 2023, the Company recognized a gain of $ 0 and $ 1,477 , respectively, from remeasuring a contingent payment to its realizable value.

This gain was recorded in other losses, net.

During the three and nine months ending September,

30, 2023, the Company recognized an impairment of $ 2,391 and $ 7,291 , respectively, on its investment in Securrency, Inc.

to reduce the

carrying value of its investment to fair value.

During the three and nine months ended September

30, 2023, the Company recognized an impairment of $ 312 on its other investments.

Segment Information

The Company, through its subsidiaries in the

and Europe, is a global financial innovator, offering a well-diversified suite of ETPs, models, solutions and products leveraging

blockchain technology.

The Company conducts business as a single operating segment as an ETP sponsor and asset manager, which is based

upon the Company’s current organizational and management structure, as well as information used by the CODM to allocate resources

and other factors.

The accounting policies of the segment are the same as those described in Note 2.

The Company, through its subsidiaries in

and Europe, offers a diverse suite of ETPs, models, solutions and products

leveraging blockchain technology.

The Company conducts business as a single operating segment as an ETP sponsor and asset manager,

which is based upon the Company’s current organizational and management structure, as well as information used by the CODM to

allocate resources and assess performance and other factors.

The accounting policies of the segment are the same as those described

The key measures of segment profit or loss that

6 unchanged sentences

Three Months Ended

September 30,

Nine Months Ended

September 30,

Net (loss)/income

Adjusted Operating Income Margin

Operating revenues

Legal expenses expected to be covered by insurance

Legal expenses covered by insurance

Operating revenues, as adjusted

5 unchanged sentences

Expenses incurred in response to an activist

campaign for the nine months ended September 30, 2024 and 2023 include $ 4,857 and $ 5,733 , respectively, of professional fees, and $ 109

and $ 147 , respectively, of other expenses.

campaign for the three months ended March 31, 2024 include $ 695 of professional fees.

All expense categories on the Consolidated Statements

13 unchanged sentences

The Company evaluated subsequent events through

the date of issuance of the accompanying consolidated financial statements.

the date of issuance of the consolidated financial statements.

There were no events requiring disclosure.

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.

What changed 10-Q

Item 1. Financial Statements