v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 14. Segment Reporting

 

The Company has two operating segments – digital assets and merchant banking. The chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. The measure of profit or loss used by the CODM to identify and measure the Company’s reportable segments is income before income tax. The Company’s digital assets segment includes the operations related to the digital asset treasury strategy. Our merchant banking segment includes our equity and other holdings. The “other” category primarily includes rental income and expenses related to the Company’s real estate in Canada.

 

 

The following tables present the financial information for each segment that is specifically identifiable or based on allocations using internal methodology for the three months ended March 31, 2026 and 2025 (in thousands):

  

   Digital Assets   Merchant Banking   Other   Total 
   Three Months Ended March 31, 2026 
   Digital Assets   Merchant Banking   Other   Total 
Rental income  $-   $-   $104   $104 
Merchant banking advisory fees   -    128    -    128 
Total revenue   -    128    104    232 
                     
Compensation costs   (286)   (252)   -    (538)
Professional fees   (202)   (122)   -    (324)
Bank and custodial fees   (18)   -    -    (18)
Realized loss on digital assets   (18,664)   -    -    (18,664)
Unrealized loss on measurement of fair value of ETH digital assets   (17,995)   -    -    (17,995)
Gain on equity holdings   -    32    -    32 
Depreciation and amortization   -    -    (74)   (74)
Other operating expenses   -    (230)   -    (230)
Interest expense, net   -    -    (24)   (24)
Segment (loss) income before taxes   (37,165)   (444)   6    (37,603)
                     
Corporate and other non-segment operating expenses                  (2,594)
Stock-based compensation                  (117)
Foreign currency transaction loss                  (26)
Interest income, net                  68 
Loss from continuing operations before taxes                 $(40,272)

 

   Digital Assets   Merchant Banking   Other   Total 
   Three Months Ended March 31, 2025 
   Digital Assets   Merchant Banking   Other   Total 
Rental income  $     -   $-   $110   $110 
Merchant banking advisory fees   -    128    -    128 
Total revenue   -    128    110    238 
                     
Compensation costs   -    (235)   -    (235)
Professional fees   -    (121)   -    (121)
Loss on equity holdings   -    (6,419)   -    (6,419)
Depreciation and amortization   -    -    (71)   (71)
Other operating expenses   -    (16)   -    (16)
Interest expense, net   -    -    (29)   (29)
Segment (loss) income before taxes   -    (6,663)   10    (6,653)
                     
Corporate and other non-segment operating expenses                  (1,894)
Stock-based compensation                  (175)
Foreign currency transaction loss                  - 
Interest income, net                  25 
Loss from continuing operations before taxes                 $(8,697)

 

The following table presents the Company’s specifically identifiable assets for each of the Company’s segments as of March 31, 2026 and December 31, 2025 (in thousands):

 

   March 31, 2026 
   Merchant Banking   Digital Assets   Other & Corporate   Total 
Segment assets  $17,224   $60,688   $17,769   $95,681 

 

   December 31, 2025 
   Merchant Banking   Digital Assets   Other & Corporate   Total 
Segment assets  $14,677   $119,384   $29,783   $163,844 

 

The “other” segment assets as of December 31, 2025 includes $13.9 million of assets of discontinued operations related to the Company’s reinsurance business, which was sold during the first quarter of 2026.