Derivatives and embedded derivatives (Table)
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6 Months Ended |
12 Months Ended |
Jun. 30, 2025 |
Dec. 31, 2024 |
| Derivative Instrument Detail [Abstract] |
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| Schedule of derivative instruments in statement of financial position, fair value |
The fair value of the Company’s derivatives and embedded derivatives are as follows (in thousands):
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Table 9.1. Fair Value of Derivative and Embedded Derivative Assets and Liabilities |
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Investments – embedded derivatives |
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$ |
3,559 |
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$ |
8,982 |
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Investments – derivatives |
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$ |
164 |
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$ |
350 |
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The fair value of the Company’s derivatives and embedded derivatives are as follows (in thousands): Table 10.1. Fair Value of Derivative and Embedded Derivative Assets and Liabilities
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Derivative and embedded derivative assets: |
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Investments - embedded derivatives |
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$ |
8,982 |
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$ |
3,521 |
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Investments - derivatives |
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$ |
350 |
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$ |
587 |
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Derivative and embedded derivative liabilities: |
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Obligation to return digital asset collateral - embedded derivatives (1) |
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$ |
— |
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$ |
1,392 |
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Represents $ 1.4 million of embedded derivatives in fair value hedging relationships as of December 31, 2023. The hedging relationships were de-designated upon the adoption of ASU 2023-08 on January 1, 2024. |
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| Schedule of derivative instruments |
The following table summarizes notional amounts related to derivatives and embedded derivatives (in thousands):
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Table 9.2. Notional Amounts of Derivative and Embedded Derivative Assets and Liabilities |
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Investments – embedded derivatives |
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$ |
1,223 |
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$ |
791 |
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Investments – derivatives |
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$ |
353 |
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$ |
384 |
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The following table summarizes notional amounts related to derivatives and embedded derivatives (in thousands): Table 10.2. Notional Amounts of Derivative and Embedded Derivative Assets and Liabilities
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Obligation to return digital asset collateral — embedded derivatives (1) |
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$ |
— |
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$ |
1,905 |
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Investments — embedded derivatives |
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$ |
791 |
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$ |
1,590 |
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Investments — derivatives |
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$ |
384 |
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$ |
1,244 |
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Represents $ 1.9 million of notional value associated with embedded derivatives in fair value hedging relationships as of December 31, 2023. The hedging relationships were de-designated upon the adoption of ASU 2023-08 on January 1, 2024. |
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| Derivative instruments, gain (loss) |
Gains (losses) on derivatives and embedded derivatives are as follows (in thousands):
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Table 9.3. Gains (losses) on Derivatives and Embedded Derivatives |
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Three months ended
June 30, |
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Obligation to return digital asset collateral - embedded derivatives (1) |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
1,629 |
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Accounts receivable, net - embedded derivatives |
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$ |
(408 |
) |
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$ |
— |
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$ |
(1,384 |
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$ |
— |
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Investments - derivatives and embedded derivatives (2) |
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$ |
1,209 |
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$ |
(2,734 |
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$ |
(4,131 |
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$ |
336 |
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(1) |
Included in in the unaudited Condensed Consolidated Statements of Operations . |
(2) |
Included in Other (expense) income, net in the unaudited Condensed Consolidated Statements of Operations. |
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Gains (losses) on derivatives and embedded derivatives are as follows (in thousands): Table 10.3. Gains (losses) on Derivative and Embedded Derivatives
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Total
Income
Statement
Impact |
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Total
Income
Statement
Impact |
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Total
Income
Statement
Impact |
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Obligation to return digital asset collateral — embedded derivatives (1) |
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$ |
1,629 |
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$ |
— |
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$ |
1,629 |
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$ |
8,553 |
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$ |
(9,031 |
) |
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$ |
(478 |
) |
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$ |
211,997 |
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$ |
— |
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$ |
211,997 |
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Prepaid expenses and other assets — embedded derivatives (2) |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
935 |
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$ |
— |
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$ |
935 |
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$ |
(3,253 |
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$ |
— |
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$ |
(3,253 |
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Loans payable, net of debt discount — embedded derivatives (2) |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
(887 |
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$ |
— |
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$ |
(887 |
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Investments — derivatives and embedded derivatives (2) |
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$ |
8,175 |
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$ |
— |
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$ |
8,175 |
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$ |
2,776 |
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$ |
— |
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$ |
2,776 |
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$ |
1,178 |
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$ |
— |
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$ |
1,178 |
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Included in Digital assets (gains) losses and impairment in the Consolidated Statements of Operations. The hedging relationships were de-designated upon the adoption of ASU 2023-08 on January 1, 2024. |
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Included in Other income (expense), net in the Consolidated Statements of Operations. |
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| Schedule of hedging instruments |
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The carrying values and associated cumulative basis adjustments for fair value hedges are as follows (in thousands): Table 10.4. Details of Hedged Item
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Carrying Value of the Hedged Item |
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Cumulative Fair Value Hedging
Adjustments Included in the Carrying
Value |
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$ |
— |
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$ |
3,297 |
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$ |
— |
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$ |
9,031 |
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The hedging relationships were de-designated upon the adoption of ASU 2023-08 on January 1, 2024 |
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