| CRYPTOCURRENCIES |
6.CRYPTOCURRENCIES Cryptocurrencies are digital assets that are typically part of a decentralized system of recording transactions, new digital assets are issued based on reliance on cryptography to secure its transactions, to control the creation of additional digital assets, and to verify the transfer of assets. The balance of cryptocurrencies at cost and at market value, is as follows: | | | | | | | | | | | | | | Quantity | | Cost (USD) (a) | | Cost (CAD) (a) | | Market Value | SOL | | 435,159 | | $ | 66,847,972 | | $ | 105,371,837 | | $ | 126,415,294 | JTO | | 52,182 | | | 106,047 | | | 145,410 | | | 114,048 | Balance at September 30, 2025 | | | | $ | 66,954,019 | | $ | 105,517,247 | | $ | 126,529,342 |
| | | | | | | | | | | | | | Quantity | | Cost (USD) (a) | | Cost (CAD) (a) | | Market Value | Bitcoin | | 56.25 | | $ | 1,684,587 | | $ | 2,183,891 | | $ | 4,816,138 | SOL | | 100,763 | | | 14,580,870 | | | 19,977,930 | | | 20,759,374 | Balance at September 30, 2024 | | | | $ | 16,265,457 | | $ | 22,161,821 | | $ | 25,575,512 |
| (a) | The cost is determined as the historical weighted average cost of the cryptocurrencies acquisitions and disposals. |
The activity of the Company’s cryptocurrencies, excluding digital assets posted as collateral with third parties, for the year ended September 30, 2025 and the year ended September 30, 2024 is as follows: | | | | Balance at September 30, 2023 | | $ | 7,852,418 | Cash purchases | | | 19,690,454 | Cash sales | | | (2,984,944) | Gain on sales | | | 2,278,025 | Staking income | | | 287,476 | Investment income received in cryptocurrencies | | | 277,273 | Cryptocurrencies posted as collateral | | | (7,969,119) | Crptocurrency collateral returned | | | 2,407,478 | Foreign exchange gain | | | 3,113 | Change in fair value | | | 3,733,338 | Balance at September 30, 2024 | | $ | 25,575,512 | Cash purchases | | | 74,920,237 | Cash sales | | | (8,677,328) | Purchases made with cryptocurrencies | | | 15,702,439 | Sales made with cryptocurrencies | | | (15,570,372) | Gain on cash sales | | | 1,414,389 | Gain on cryptocurrency traded for cryptocurrency | | | 1,528,039 | Staking and validating income before cost of sales paid in fiat | | | 10,734,659 | Expenses paid in cryptocurrencies | | | (582,302) | Investment income received in cryptocurrencies | | | 132,067 | Other income | | | 66,927 | Cryptocurrencies posted as collateral | | | (1,757,712) | Cryptocurrency collateral returned | | | 2,763,872 | Foreign exchange gain | | | 176,479 | Change in fair value | | | 20,102,436 | Balance at September 30, 2025 | | $ | 126,529,342 |
During the year ended September 30, 2025 the Company resumed its treasury management investment strategy to generate income on its cryptocurrency assets, previously executed intermittently during the years ended September 30, 2024 and 2023. During the years ended September 30, 2025 and 2024, the treasury management investment strategy involves selling covered European call options (each, an “Option”) on OTC markets. The Company recognizes premium income upon the sale of an Option. In the event the Option expires in-the-money, the Company’s underlying Bitcoin used as collateral to sell the Option are sold at the strike price of the Option. The activity of the Company’s cryptocurrencies posted as collateral during the years ended September 30, 2025 and 2024, is as follows: | | | | Balance at September 30, 2023 | | $ | — | Cryptocurrencies posted as collateral | | | 7,969,119 | Cryptocurrency collateral returned | | | (2,407,478) | Investment income received in cryptocurrencies | | | 95,568 | Cash sales | | | (11,027,632) | Gain on sales | | | 5,370,423 | Balance at September 30, 2024 | | $ | — | Cryptocurrencies posted as collateral | | | 1,757,712 | Cryptocurrency collateral returned | | | (2,763,872) | Gain on sales | | | 1,006,160 | Balance at September 30, 2025 | | $ | — |
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