NOTE 4 – DIGITAL ASSETS

As of March 31, 2026, the Company’s investment in digital assets comprises 2,989.4 Bitcoin, including 1,893.0 Bitcoin with a carrying value of $129,132,431 and 1,096.4 Bitcoin with a carrying value of $74,794,125 restricted by lenders as collateral for borrowing arrangements. Bitcoin restricted by lenders as collateral for borrowing arrangements will remain restricted until the underlying borrowings are repaid or until the value of such collateral increases to the Collateral Refund Level (as defined below) (see Note 5 for further discussion of the borrowing arrangements, collateral requirements, and repayment provisions).

The following table summarizes the Company’s digital assets held as of March 31, 2026, and related activity for the three months ended March 31, 2026.

During the three months ended March 31, 2026, the Company sold 1,092 BTC for proceeds of $74,694,788 resulting in a realized loss of $53,260,259 based on the original cost of the BTC sold. BTC is a digital asset, which is a novel asset class that is subject to significant legal, commercial, regulatory and technical uncertainty. Holding BTC does not generate any cash flows and involves custodial fees and other costs. Additionally, the price of BTC has historically experienced significant price volatility, and a significant decrease in the price of BTC would adversely affect the Company’s financial condition and results of operations. The Company’s strategy of acquiring and holding BTC also exposes it to counterparty risks with respect to the custody of its BTC, cybersecurity risks, and other risks inherent to holding a digital asset. In particular, the Company is subject to the risk that, if its private keys with respect to its digital assets are lost or destroyed or other similar circumstances or events occur, the Company may lose some or all of its digital assets, which could materially adversely affect the Company’s financial condition and results of operations. To mitigate this risk, the Company utilizes multiple custodians in order to limit the concentration of holding its digital assets within one custodian.

The Company from time to time also enters into short-term put and call contracts for Bitcoin to generate income on its Bitcoin holdings. As of March 31, 2026, there were no such outstanding contracts. During the three months ended March 31, 2026, the Company generated income of $548,301 from trading these put and call contracts, which is recorded in other income in the condensed consolidated statement of operations.

In the period from April 1, 2026 to May 7, 2026, the Company sold 75 BTC and received proceeds of $5,369,291. As discussed in Note 5, during this period the Company also borrowed proceeds of $10.0 million and transferred 257 BTC as collateral for the additional borrowing.