Hut 8 Corp.

Condensed Consolidated Balance Sheets

(in USD thousands, except share and per share data)

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

Condensed Consolidated Statements of Equity

Nine Months Ended September 30, 2025

Condensed Consolidated Statements of Equity

Nine Months Ended September 30, 2026

Condensed Consolidated Statements of Cash Flows

(Unaudited, in USD thousands)

Condensed Consolidated Statements of Cash Flows

(Unaudited, in USD thousands)

Note 1. Organization

Nature of operations and corporate information

Hut 8 Corp. (together with its consolidated subsidiaries, the "Company" or "Hut 8") is an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive technologies. The Company develops, commercializes, and operates industrial-scale energy and data center infrastructure through a power-first, innovation-driven approach. The Company was incorporated in Delaware in January 2023.

Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements

Basis of presentation

The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial reporting. While these statements reflect all normal recurring adjustments which are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all the information and footnotes required by GAAP for complete financial statements. As such, the information included in this Quarterly Report should be read in conjunction with the Company's Consolidated Financial Statements for the year ended December 31, 2025, and related notes thereto, included in the Annual Report.

Interim results are not necessarily indicative of results for a full year.

The U.S. Dollar is the functional and presentation currency of the Company.

Significant accounting policies followed by the Company in the preparation of the accompanying Unaudited Condensed Consolidated Financial Statements are summarized below.

Principles of consolidation

These Unaudited Condensed Consolidated Financial Statements of the Company include the accounts of the Company and its controlled subsidiaries. Consolidated subsidiaries' results are included from the date the subsidiary was formed or acquired. Intercompany balances and transactions have been eliminated in consolidation.

Unconsolidated investments in which the Company does not have a controlling interest but does have significant influence are accounted for as equity method investments, with earnings recorded in Other (expenses) income. These investments are included in long-term assets and the Company's proportionate share of income or loss is included in Other (expenses) income.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation. The Company believes that the reclassifications do not have a material impact on the Company's Unaudited Condensed Consolidated Financial Statements and related disclosures. The impact on any prior period disclosures is immaterial.

Recent accounting pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequences of the change to its Unaudited Condensed Consolidated Financial Statements and ensures that there are proper controls in place to ascertain that the Company's Unaudited Condensed Consolidated Financial Statements properly reflect the change.

In May 2026, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818) ("ASU 2026-02"). ASU 2026-02 provides recognition, measurement, presentation, and disclosure requirements for environmental credits and environmental credit obligations. This update is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently assessing the impact of adopting this standard. Adoption of ASU 2026-02 requires retrospective application through a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the annual reporting period of adoption.

In December 2025, FASB issued ASU 2025-12, Codification Improvements ("ASU 2025-12"). Among other amendments to various Topics within the FASB Accounting Standards Codification, ASU 2025-12 clarifies dilutive earnings per share treatment for certain contracts that may be settled in stock or cash when a company has a loss from continuing operations. This update is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently assessing the impact of adopting this standard. For earnings per share amendments, adoption of ASU 2025-12 requires retrospective application to each prior reporting period presented.

In September 2025, FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606) ("ASU 2025-07"). With respect to Topic 815, ASU 2025-07 refines the scope of Topic 815 to clarify which contracts are subject to derivative accounting. This update is effective for interim and annual reporting periods beginning after December 15, 2026, with early adoption permitted. The Company is currently assessing the impact of adopting this standard. ASU 2025-07 may be applied using a prospective or modified retrospective transition approach.

In September 2025, FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06"). ASU 2025-06 modernizes the accounting for internal-use software to current development practices, clarifies when to begin capitalizing costs, and enhances disclosure requirements. This update is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted. The Company is currently assessing the impact of adopting the standard. ASU 2025-06 may be applied using a prospective transition, modified transition, or retrospective transition approach.

In January 2025, FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date ("ASU 2025-01"). ASU 2025-01 was issued to clarify the effective date for ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"). ASU 2024-03 requires public business entities to provide additional disclosures in the notes to financial statements, disaggregating specific expense categories within relevant income statement captions. The prescribed categories include purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depreciation, depletion, and amortization related to oil-and-gas producing activities. ASU 2024-03 is effective for the first annual reporting period beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently assessing the impact of adopting the standard. ASU 2024-03 may be applied prospectively or retrospectively.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements. The most significant accounting estimates inherent in the preparation of the Company's Unaudited Condensed Consolidated Financial Statements include estimates associated with revenue recognition, determining the useful lives and recoverability of long-lived assets, impairment analysis of finite-lived intangibles, goodwill and digital assets, stock-based compensation, and current and deferred income tax assets (including the associated valuation allowance) and liabilities.

Cash and cash equivalents

Cash includes cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal or use. The Company considers all highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. As of September 30, 2026, the Company's cash equivalents consisted of money market funds, U.S. government securities, commercial paper, and corporate debt securities held within the project accounts described in Restricted cash and cash equivalents below. The Company hadno cash equivalents as of December 31, 2025. Periodically, the Company may maintain deposits in financial institutions in excess of government insured limits. Management believes that the Company is not exposed to significant credit risk as the Company's deposits are held at financial institutions that management believes to be of high credit quality. To date, the Company has not experienced any losses on these deposits.

Restricted cash and cash equivalents

Restricted cash and cash equivalents consist of cash and cash equivalents subject to restrictions on withdrawal or use under certain contractual arrangements. As of September 30, 2026, restricted cash and cash equivalents principally consisted of the net proceeds of the River Bend Notes and the Beacon Point Notes (each as defined in Note 11. Loans, notes payable, and other financial liabilities) held in project accounts required under the respective indentures. These project accounts, including construction and debt service reserve accounts, are restricted for use in the development and construction of the Company's data center projects and the payment of related debt service. Restricted cash and cash equivalents also included cash balances supporting commercial letters of credit. As of December 31, 2025, restricted cash and cash equivalents principally consisted of cash balances supporting commercial letters of credit. See Note 11. Loans, notes payable, and other financial liabilities for further information.

Investments

The Company's investments primarily consist of available-for-sale ("AFS") securities. AFS debt securities include commercial paper, U.S. government securities, and corporate debt securities. AFS debt securities are recorded at fair value with unrealized gains and losses recorded in Accumulated other comprehensive (loss) income. AFS securities with original maturities greater than three months at the date of purchase are included in Restricted short-term investments in the Company's Unaudited Condensed Consolidated Balance Sheets. Interest, dividends, amortization, and accretion on these investments are included within Interest income in the Company's Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

The cost of AFS securities sold is based on the specific identification method. Realized gains and losses on the sale of AFS investments are recorded in Other (expenses) income.

For AFS debt securities in an unrealized loss position, the Company first evaluates whether it intends to sell, or whether it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either condition is met, the difference between the amortized cost and fair value is recognized in earnings. If the Company does not intend to sell and is not required to sell the security before recovery, the Company evaluates whether the decline is due to credit-related factors. Losses due to credit-related factors, if any, are recognized through an allowance for credit losses with a corresponding charge to earnings, and any remaining unrealized loss is recognized in Other comprehensive income (loss).

Other investments

In January 2024, the Company acquired 374,261 shares of Class A common stock of Ionic Digital Inc. ("Ionic") for $6.4 million in cash pursuant to a contribution agreement and recorded the amount in Other investments in the Company's Unaudited Condensed Consolidated Balance Sheets. Prior to Ionic's Class A common stock becoming publicly traded in July 2026, the investment was accounted for under the measurement alternative in FASB ASC Topic 321, Investments—Equity Securities ("ASC 321"), at cost less impairment, adjusted for observable price changes. Following Ionic's public listing of its Class A common stock, the investment is measured at fair value using quoted market prices (Level 1), with changes in fair value recognized in Other (expenses) income in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). As of September 30, 2026, the Other investments had a fair value of $30.1 million, and the Company recognized an unrealized gain of $23.7 million for thethree and nine months ended September 30, 2026.

Debt issuance costs

Debt issuance costs are presented as a direct deduction from the carrying amount of the related loans and notes payable and amortized to interest expense over the term of the related debt using the effective interest method. Costs related to the revolving credit facility are recorded within Deposits, prepaid expenses, and other assets in the Company's Unaudited Condensed Consolidated Balance Sheets and amortized to interest expense on a straight-line basis over the term of the facility. For more information on the Company's loans and notes payable, see Note 11. Loans, notes payable, and other financial liabilities.

Fair value measurement

The Company's financial assets and liabilities are accounted for in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820") which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs when measuring fair value and classifies those inputs into three levels:

Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 — Observable, market-based inputs, other than quoted prices included in Level 1, for the assets or liabilities either directly or indirectly.

Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company's market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or a liability may fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment.

Assets and liabilities measured at fair value on a recurring basis

In determining the fair value of its digital assets, the Company uses quoted prices as determined by the Company's principal market, which is the Coinbase exchange. As such, the Company's digital assets were determined to be Level 1 assets.

The Company determines the fair value of its other investments using quoted prices in active markets for identical securities (Level 1), and the Company determines the fair value of its restricted short-term investments using a market approach utilizing observable market inputs (Level 2).

The Company estimates the fair value of its Bitcoin redemption and put options using the Black model, which includes several inputs and assumptions, including the forward price of the underlying asset (Bitcoin), the underlying asset's implied volatility, the risk-free interest rate, and the expected term of the redemption option. As of September 30, 2026, these options were only held by American Bitcoin Corp.

See Derivatives below for a description of certain of the Company's derivative instrument accounting policies.

In estimating the fair value of its call options sold on Bitcoin that it owns, the Company uses the Black model, which includes several inputs and assumptions, including the forward price of the underlying asset (Bitcoin), the underlying asset's implied volatility, the risk-free interest rate, and the expected term of the options. The expected term of the options is the contractual term of the options given the options can only be exercised on their expiry date (i.e., European-style options). The Company determined that the call options are Level 2 liabilities given all inputs are observable, but the options themselves are not traded in an active market.

The Company estimated the fair value of its other financial liability using the Probability-Weighted Expected Return Method ("PWERM"), which includes significant unobservable inputs, including the instrument's estimated credit spread, and as a result, the Company determined that the other financial liability is a Level 3 liability. For quantitative disclosure on the inputs used to estimate the fair value of the Company's other financial liability, see Note 11. Loans, notes payable, and other financial liabilities. For a description of the Company's other financial liability accounting policy, see Other financial liability in Note 2 of the Company's Consolidated Financial Statements for the year ended December 31, 2025.

The Company estimated the fair value of the ABTC-Gryphon Warrants (as defined in Note 12. Derivatives) using the Black-Scholes pricing model, which includes unobservable inputs, including the expected term of the warrants, and as a result, the Company determined that the warrant liability is a Level 3 liability. For quantitative disclosure on the inputs used to estimate the fair value of the ABTC-Gryphon Warrants, see Note 12. Derivatives. See Warrant liability for a description of the ABTC-Gryphon Warrants' accounting policy.

See Note 5. Fair value measurements and investments for information regarding the Company's assets and liabilities measured at fair value on a recurring basis and their classification within the fair value hierarchy.

Assets and liabilities measured at fair value on a non-recurring basis

In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also measures certain assets and liabilities at fair value on a non-recurring basis. The Company's non-financial assets, including goodwill, intangible assets, operating lease right-of-use assets, assets held for sale, and property and equipment, are measured at fair value when there is an indication of impairment and the carrying amount exceeds the asset's projected undiscounted cash flows. These assets are recorded at fair value only when an impairment charge is recognized. The Company hadnil impairment from its operations related to its non-financial assets and liabilities measured on a non-recurring basis during thethree and nine months ended September 30, 2026 and 2025, respectively. See the Impairment of long-lived assets and Goodwill accounting policies below for additional information.

The carrying amounts of the Company's financial assets and liabilities, such as cash and cash equivalents, accounts receivable, accounts payable, interest payable, and accrued expenses, approximate fair value due to the short-term nature of these instruments. The carrying values of loans and notes payable and other long-term liabilities approximate fair value, unless otherwise disclosed separately, as the related interest rates approximate rates currently available to the Company. See Derivatives below for a description of the Company's derivative instrument accounting policy and Note 11. Loans, notes payable, and other financial liabilitiesfor additional disclosures on the Company's loans, notes payable, and other financial liabilities.

Digital assets

Digital assets are accounted for as intangible assets in accordance with ASC Topic 350-60, Intangibles—Goodwill and Other, Crypto Assets ("ASC 350-60") after early adoption of ASU 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets ("ASU 2023-08"), and are measured at fair value as of each reporting period. The fair value of digital assets is measured using the period-end closing price from the Company's principal market, which is the Coinbase exchange, in accordance with ASC 820. Since digital assets are traded on a 24-hour basis, the Company utilizes the price as of midnight UTC time, which aligns with the Company's Bitcoin mining revenue recognition cut-off. Changes in fair value are recognized in (Gain) loss on digital assets, within Operating income (loss) in the Company's Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). When the Company sells digital assets, gains or losses from such transactions are measured as the difference between the cash proceeds and the carrying basis of the digital assets as determined on a first-in, first-out basis and are also recorded within the same line item (Gain) loss on digital assets.

Cash proceeds as a result of digital assets received from Bitcoin mining that are converted nearly immediately into cash are classified as operating activities in the Company's Unaudited Condensed Consolidated Statements of Cash Flows. Cash proceeds from other sales of digital assets are classified as investing activities in the Company's Unaudited Condensed Consolidated Statements of Cash Flows.

Digital assets are classified as current assets when the Company expects to sell or otherwise use them within twelve months of the balance sheet date, including Bitcoin designated for sale subsequent to period end, Bitcoin pledged as collateral under borrowings maturing within twelve months that are not expected to be refinanced, and Bitcoin pledged for miner purchases for which the redemption period ends within twelve months. All other digital assets are classified as non-current.

Impairment of long-lived assets

The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its long-lived assets, including property and equipment, may not be recoverable. When such events or changes in circumstances occur, the Company assesses recoverability at the asset group level, representing the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability is assessed by comparing the carrying amount of the asset group to the undiscounted expected future cash flows from its use and eventual disposition. If the expected future undiscounted cash flows are less than the carrying amount of the asset group, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the asset group.

When recognized, impairment losses related to long-lived assets held and used in operations are recorded as operating expenses in the Company's Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

For the nine months ended September 30, 2026 and 2025, no impairment losses related to long-lived assets were recorded.

Goodwill

Goodwill represents the cost of a business acquisition in excess of the fair value of the identifiable net assets acquired. Goodwill is not amortized and is tested for impairment at the reporting unit level at least annually and between annual tests whenever events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount.

Impairment of goodwill

During the third quarter of 2026, the Company changed the timing of its annual goodwill impairment test from December 31 to September 30. The Company believes this change is preferable as it better aligns with its annual financial reporting and planning processes. The change did not have a material impact on the Company's Unaudited Condensed Consolidated Financial Statements.

In performing the goodwill impairment test, the Company may first perform a qualitative assessment, which requires the Company to consider relevant events and circumstances, including changes in macroeconomic conditions, industry and market conditions, financial performance, business strategy and other reporting unit-specific factors.

If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or elects to bypass the qualitative assessment, the Company performs a quantitative goodwill impairment test by comparing the fair value of the reporting unit to its carrying amount, including goodwill. To determine the fair value, the Company uses the income approach, the market approach, or both, depending on which best reflects the fair value of the reporting unit in the circumstances. The income approach is based on estimated discounted future cash flows, and the market approach is based on comparable publicly traded companies in similar lines of business. Cash flow assumptions consider historical and forecasted revenue, operating costs and other relevant factors. An impairment loss is recognized to the extent the carrying amount of the reporting unit exceeds its fair value, limited to the goodwill allocated to the reporting unit.

When recognized, goodwill impairment losses are recorded as operating expenses in the Company's Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

For the nine months ended September 30, 2026 and 2025, no goodwill impairment losses were recorded.

Capitalized interest

The Company capitalizes interest cost incurred on its project-level debt during the period required to construct, develop, and prepare qualifying assets for their intended use, in accordance with FASB ASC Topic 835-20, Interest – Capitalization of Interest("ASC 835-20"). Qualifying assets consist of data center and energy infrastructure projects under construction for which expenditures have been incurred and construction activities are in progress. Capitalization of interest commences when expenditures for the qualifying asset have been made, activities necessary to prepare the asset for its intended use are underway, and interest cost is being incurred; it ceases when the asset is substantially complete and ready for its intended use.

The total amount of interest capitalized in any period does not exceed the total interest cost incurred during that period. Capitalized interest is recorded within property and equipment as part of construction in progress.

Derivatives

The Company accounts for the derivative contracts it enters into, including Bitcoin redemption and put options, call options, the separated embedded derivative from the convertible note (through its conversion date), and warrant liability as follows:

Bitcoin redemption and put options

American Bitcoin has entered into agreements to purchase property and equipment that include pledges of Bitcoin, rights to make future pledges of Bitcoin, and rights to redeem the pledged Bitcoin for certain periods after the relevant redemption periods start. These Bitcoin redemption and put options do not qualify as accounting hedges under FASB ASC Topic 815, Derivatives and Hedging ("ASC 815"). Accordingly, American Bitcoin carries its Bitcoin redemption and put options at fair value, and any gains or losses are recognized in profit or loss.

Separated embedded derivative from the convertible note

The Company evaluates and accounts for derivatives embedded in its convertible instruments in accordance with ASC 815. Accordingly, the Company has assessed if embedded derivatives should be separated from its host contract and accounted for as a derivative instrument based on whether all three ASC 815 criteria are met: (1) the economic characteristics and risks of the embedded derivative are not clearly and closely related to the economic characteristics and risks of the host contract, (2) the hybrid instrument is not remeasured at fair value under GAAP with changes in fair value reported in earnings as they occur, and (3) a separate instrument with the same terms as the embedded derivative would be a derivative instrument. ASC 815 also provides an exception to this rule when the host instrument is deemed to be a conventional convertible debt instrument as defined in the FASB ASC topic. The Company identified embedded derivatives in the Coatue Note, which was a convertible instrument it issued in June 2024, including conversion options, other redemption features, and contingently exercisable options. The Company determined that the Contingent Repurchase Right (as defined in Note 11. Loans, notes payable, and other financial liabilities) in such convertible instrument was an embedded derivative that should be separated from its host contract and accounted for as a derivative instrument as per ASC 815. The conversion option was indexed to the Company's common stock and met the criteria for classification in stockholders' equity, and therefore derivative accounting did not apply. The other embedded derivatives did not meet all three previously mentioned ASC 815 criteria, and therefore were not separated from their host contract. Prior to its derecognition, the Company accounted for the separated embedded derivative as a derivative instrument carried at fair value, with gains or losses recognized in profit or loss. In May 2026, the Coatue Note was converted into shares of the Company's common stock, and the related separated embedded derivative from the convertible note was derecognized. Accordingly, there was no separated embedded derivative from the convertible note outstanding as of September 30, 2026.

Call options

From time to time, the Company has sold call options to generate cash flows on a portion of its Bitcoin held. These options do not qualify as accounting hedges under ASC 815. Accordingly, the Company carries its call options at fair value, and any gains or losses are recognized in profit or loss.

Warrant liability

American Bitcoin assumed certain warrants in the ABTC Merger (as defined in Note 12. Derivatives) that meet the definition of a derivative under ASC 815, and due to the terms, the warrants are required to be classified as a liability. American Bitcoin carries its warrant liability at fair value, and any gains or losses are recognized in profit or loss.

Stock repurchases

Shares of common stock repurchased under the Company's stock repurchase program are retired upon repurchase. The cost of repurchased shares, including commissions and other direct costs, is recorded as a reduction of common stock for the par value of the shares retired, with the excess of the repurchase price over par value charged to additional paid-in capital. No amounts are charged to retained earnings (accumulated deficit) in connection with share repurchases. The repurchase program does not obligate the Company to acquire any particular amount of common stock, and repurchases may be suspended or discontinued at any time. The Company's share repurchases, net of qualifying share issuances, are subject to a 1% excise tax enacted by the Inflation Reduction Act of 2022. Any applicable excise tax is accrued and recorded as a reduction to additional paid-in capital. For more details, refer to the At-the-Market Offering and Stock Repurchase Programs section in Note 14. Equity.

Net income (loss) per share attributable to common stockholders

Basic net income (loss) per share of common stock attributable to the Company is computed by dividing net income (loss) attributable to the Company, adjusted for the impact of subsidiary warrants exercisable for little or no cash consideration ("Penny Warrant(s)") issued by a former consolidated subsidiary that was sold in February 2026, as described in Note 3. Far North JV sale, by the weighted-average number of shares of common stock outstanding during the period.

Diluted net income (loss) per share of common stock attributable to the Company is computed by giving effect to all potentially dilutive shares of common stock, including stock options, restricted stock units, deferred stock units, performance stock units, and common stock purchase warrants to the extent dilutive under the treasury-stock method, the numerator adjustments arising from the warrant liability assumed by a consolidated subsidiary and subsidiary equity awards, both to the extent dilutive, and potential shares of common stock issuable upon conversion of the Company's convertible note under the if-converted method. Under the if-converted method, net income (loss) attributable to the Company is adjusted by the effect, net of tax, of potentially dilutive shares computed under this method. Contingently issuable shares whose issuance is contingent upon the satisfaction of certain conditions are considered outstanding and included in the computation of diluted net income (loss) per share of common stock attributable to the Company if all necessary conditions have been satisfied by the end of the period or if the end of the period is deemed the end of the contingently issuable shares' contingency period. In computing potentially dilutive shares of common stock, each class of shares is applied to basic net income (loss) per share of common stock attributable to the Company on a most to least dilutive basis until a particular class no longer produces further dilution, if applicable.

Non-controlling interests

Non-controlling interests represent the portion of net assets in consolidated entities that are not owned by the Company and are reported as a component of equity on the Company's Unaudited Condensed Consolidated Balance Sheets. As of September 30, 2026, the non-controlling interest on the Company's Unaudited Condensed Consolidated Balance Sheets consists of 46.37% ownership by third parties in American Bitcoin (as defined below). For more details, refer to American Bitcoin reverse stock split and non-controlling interest section in Note 14. Equity. Previously, there was a non-controlling interest in the Company's formerly consolidated subsidiary, Far North Power Corp. (the "Far North JV"), prior to its sale. For more details, refer to Note 3. Far North JV sale.

Note 3. Far North JV sale

On February 2, 2026, the Company closed on its share purchase agreement ("Far North SPA") with TransAlta Corporation ("TransAlta"), under which TransAlta acquired 100% of the Far North JV which owned and operated a 310-megawatt portfolio offour natural gas-fired power plants in Ontario. TransAlta paid cash consideration in Canadian Dollars (C$), and the total amount paid at closing was $75.4 million (C$105.1 million). Pursuant to the Far North SPA, immediately prior to the sale of the Far North JV to TransAlta, (1) the non-controlling interest exercised 2,000,000 Penny Warrants of the Far North JV, (2) the Company acquired the non-controlling interest in the Far North JV for $10.0 million (C$13.9 million), (3) the Company received $7.4 million (C$10.4 million) for the repayment of indebtedness owed by the Far North JV to the Company, and (4) $27.9 million (C$38.9 million) was paid to the finance lease lessor to buy out the finance lease at the Far North JV's Iroquois Falls, Ontario power plant. In June 2026, the Company finalized the working capital adjustment related to the sale of the Far North JV and, as a result, received $1.1 million (C$1.6 million) in cash and recognized a corresponding increase in the gain on sale.

A reconciliation of the proceeds received by the Company, or paid for on behalf of the Company, and the gain on sale of the Far North JV is as follows:

(1)

The finance lease buyout comprised $3.2 million in indirect taxes and $24.7 million for the lease buyout, which exceeded the associated lease liability's carrying amount immediately prior to the sale of $20.8 million by $3.9 million.

The results of operations of the Far North JV were part of the Power Generation business, under the Company's Power segment. The divestiture did not meet the criteria to be classified as discontinued operations as it did not represent a strategic shift that would have a major effect on the Company's operations or financial results.

Note 4. Segment information

The following table presents gross revenue, gross cost of revenue and certain reconciling items for the Company's reportable segments, reconciled to the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Certain reconciling items, including general and administrative expenses, are presented on a gross basis.

The following table presents summarized information for revenue by geographic area:

The following table presents summarized information for long-lived assets by geographic area:

Note 5. Fair value measurements and investments

The Company's assets and liabilities measured at fair value on a recurring basis include investments, digital assets, and other financial instruments.

The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis and the Company's estimated level within the fair value hierarchy of those assets and liabilities as of September 30, 2026 and December 31, 2025:

The following tables present the fair value hierarchy and classification of the Company's restricted cash equivalents and restricted short-term investments as of September 30, 2026:

Restricted cash equivalents of $3.2 billion presented above are included within Restricted cash and cash equivalents of $3.6 billion on the Unaudited Condensed Consolidated Balance Sheets as of September 30, 2026. The remaining $331.7 million comprises restricted cash held in bank deposits.

As of September 30, 2026, all of the Company's restricted short-term investments had contractual maturity dates within one year.

For investments with unrealized loss positions, the Company does not intend to sell these securities, and it is more likely than not that the Company will hold these securities until maturity or a recovery of the cost basis. No allowance for credit losses was recorded for these securities as of September 30, 2026. No security has been in a loss position for twelve months or more as of September 30, 2026.

Accrued restricted interest receivable is excluded from the amortized cost and fair value of the Company's marketable securities. Accrued restricted interest receivable of $8.7 million andnil were presented separately within Deposits, prepaid expenses, and other assets on the Company's Unaudited Condensed Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025, respectively. The Company does not measure an allowance for credit losses on accrued restricted interest receivable and writes off uncollectible amounts by reversing interest income in the period in which such amounts are determined to be uncollectible.

Note 6. Digital assets

Digital assets on the Company's Unaudited Condensed Consolidated Balance Sheets consist of Bitcoin and Investment Tokens (as defined below) as of September 30, 2026.

Bitcoin

The following table presents the changes in the carrying amount of Bitcoin as of September 30, 2025 and September 30, 2026:

As of September 30, 2026, the Company's Bitcoin was either held in segregated custody accounts for the benefit of the Company, held in segregated custody accounts under the Company's ownership and pledged as collateral under a borrowing arrangement, or held by Bitmain Technologies Delaware Limited (together with its affiliates, "Bitmain") for the Bitcoin pledged in connection with the 2025 ABTC Bitmain Purchase Agreement (as defined below) and 2026 ABTC Bitmain Purchase Agreement (as defined below) for miner purchases from them. The details of the Bitcoin are as follows:

In November 2024, the Company entered into an agreement with Bitmain to purchase approximately 30,000 Bitmain Antminer S21+ ASIC miners (as amended, the "Bitmain Purchase Agreement") and, in December 2024, pledged 968 Bitcoin to Bitmain, subject to the Company's right to redeem the Bitcoin for cash at a mutually agreed upon fixed price. After the redemption period was extended several times during 2025, the Company elected not to redeem in January 2026, the right expired, and Bitmain retained the pledged Bitcoin as consideration for the miners.

During 2024, the Company also entered into an ASIC colocation contract with Bitmain at its Vega site, which included an option to purchase the hosted miners at a fixed price. On March 31, 2025, the Company entered into a Put Option Agreement (the "Put Option Agreement") with American Bitcoin (as defined below), giving it the right to put to American Bitcoin any miners purchased under this option.

On August 5, 2025, pursuant to a put option agreement with American Bitcoin, the Company assigned its option to purchase up to approximately 17,280 Bitmain Antminer U3S21EXPH ASIC miners (collectively, the "Bitmain Miners"), representing a total of approximately 14.86 exahash per second ("EH/s"), to American Bitcoin. American Bitcoin exercised the option on August 5, 2025 and entered into an On-Rack Sales and Purchase Agreement (the "2025 ABTC Bitmain Purchase Agreement") with Bitmain to purchase the Bitmain Miners in one or more tranches for a total purchase price of up to approximately $320.0 million, not including any applicable tariffs, duties or similar charges.

Concurrently with the execution of the 2025 ABTC Bitmain Purchase Agreement, American Bitcoin purchased 16,299 of the Bitmain Miners, representing a total of approximately 14.02 EH/s, for a total purchase price of approximately $314.0 million, paid through the pledge of 2,234 Bitcoin at a mutually agreed upon fixed price. Such purchase price was reduced by the application of a deposit and certain expenses of approximately $46.0 million previously paid to Bitmain. In September 2025, American Bitcoin purchased the remaining 981 Bitmain Miners for a total purchase price of $18.9 million, paid through the pledge of 151 Bitcoin at a mutually agreed upon fixed price, net of certain hosting credits. In October 2025, American Bitcoin pledged an additional 391 Bitcoin at a mutually agreed upon fixed price, and Bitmain refunded the Company's $46.0 million comprising the deposit and certain expenses. The Bitcoin pledged under the 2025 ABTC Bitmain Purchase Agreement has a redemption period of approximately twenty-four months from the applicable pledge date.

In February 2026, American Bitcoin entered into a Future Sales and Purchase Agreement (the "2026 ABTC Bitmain Purchase Agreement") with Bitmain to purchase approximately 11,298 S21 XP ASIC miners for a total purchase price of approximately $49.4 million. The agreement required an initial payment equal to 80% of the total purchase price, which was paid through the pledge of 314 Bitcoin at a mutually agreed upon fixed price, with the remaining 20% due one year following the shipment date of the S21 XP ASIC miners. The remaining 20% is to be paid through cash, Bitcoin pledged at a mutually agreed upon floor price, or a combination of both. The Bitcoin pledged under the 2026 ABTC Bitmain Purchase Agreement has a redemption period of approximately twenty-four months from the applicable pledge date. American Bitcoin may elect to extend the pledge period for an additional twelve months.

As of September 30, 2026, American Bitcoin had pledged 3,090 Bitcoin to Bitmain, with a fair value of $257.8 million, which was classified as Digital assets – pledged for miner purchase on the Company's Unaudited Condensed Consolidated Balance Sheets. A corresponding liability of $371.7 million was recorded as Miner purchase liability, reflecting the Company's obligation to either redeem the pledged Bitcoin for cash or apply the pledged Bitcoin toward the purchase of ASIC miners at the end of each respective redemption period.

In accordance with FASB ASC Topic 610-20, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets, the Company assessed the transfer of nonfinancial assets, Bitcoin, under ASC 606. Specifically, the Company noted that the Bitcoin pledged to Bitmain under the 2025 ABTC Bitmain Purchase Agreement and 2026 ABTC Bitmain Purchase Agreement constitute repurchase agreements under ASC 606. As a result, the Bitcoin was not derecognized upon transfer as the Company retains repurchase options.

Due to the redemption rights and American Bitcoin's continued economic exposure to the Bitcoin, the pledged Bitcoin is separately classified as Digital assets – pledged for miner purchase on the Unaudited Condensed Consolidated Balance Sheets, which represents restricted Bitcoin.

The Company recorded Bitcoin redemption and put options, which are derivative assets, with an initial fair value of $23.2 million during thenine months ended September 30, 2026. See Note 12. Derivatives for further information on these derivative assets.

To fund repurchases of its common stock under its stock repurchase program (see Note 14. Equity), Hut 8 sold approximately 954 Bitcoin for aggregate net proceeds of $74.8 million during the three months ended September 30, 2026, and approximately 2,148 Bitcoin for aggregate net proceeds of $175.4 million in October 2026.

Investment Tokens

During 2025, the Company purchased 100 million World Liberty Financial, Inc. tokens ("Investment Tokens") at $0.25 per token for total cash consideration of $25.0 million pursuant to a Token Purchase Agreement ("TPA") with World Liberty Financial, Inc. ("WLFI"). The Company's Investment Tokens are subject to an indefinite lockup, with a minimum of twelve months from purchase date. Future unlocks are subject to the Investment Tokens' protocol governance procedures and may be subject to WLFI's discretion. The following table presents the changes in the carrying amount of the Investment Tokens as of September 30, 2026:

As of September 30, 2026, the Company's Investment Tokens were held in a segregated custody account for the benefit of the Company. The details of the Investment Tokens are as follows:

Note 7. Property and equipment, net

The components of property and equipment were as follows:

Depreciation and amortization expense related to property and equipment was $39.3 million and $26.9 million for thethree months ended September 30, 2026 and September 30, 2025, respectively.

Depreciation and amortization expense related to property and equipment was $115.7 million and $59.5 million for thenine months ended September 30, 2026 and September 30, 2025, respectively.

Interest capitalized to construction in progress is described in Note 11. Loans, notes payable, and other financial liabilities. Construction in progress includes deposits made for property and equipment not yet received.

There is considerable management judgment necessary to determine the estimated future cash flows and fair values of the Company's long-lived assets, and, accordingly, actual results could vary significantly from such estimates, which fall under Level 3 within the fair value measurement hierarchy (see discussion of fair value measurements in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements).

Note 8. Deposits, prepaid expenses, and other assets

The components of deposits, prepaid expenses, and other assets are as follows:

Note 9. Investment in unconsolidated joint venture

In December 2022, Hut 8 acquired a 50% interest in TZRC LLC ("TZRC"), a two-member operating joint venture that develops and operates digital asset mining data centers and provides hosting services, for $10.0 million in cash and the assumption of a senior secured promissory note (the "TZRC Secured Promissory Note") with an estimated fair value of $95.1 million as of the transaction date (see Note 11. Loans, notes payable, and other financial liabilities). The Company also manages TZRC's facilities under a property management agreement ("PMA").

The service contract has a term of 10 years and is automatically renewed for successiveone-year terms unless either party provides written notice of non-renewal. As property manager, the Company is entitled to approximately $1.5 million per year, subject to downward adjustment based on capacity utilization of TZRC's data centers. In addition, the PMA allows pass-through costs on behalf of the Company, such as payroll and other incidental costs. Pass-through costs for thethree months ended September 30, 2026 and 2025 were approximately $0.7 million and $0.7 million, respectively. Pass-through costs for thenine months ended September 30, 2026 and 2025 were approximately $2.3 million and $2.1 million, respectively.

The Company accounts for its indirect 50% interest in TZRC using the equity method of accounting. For thethree months ended September 30, 2026 and 2025, the Company's proportionate share of TZRC's net income (loss), before basis adjustments, was $3.6 million of net income and $0.4 million of net income, respectively. For thenine months ended September 30, 2026 and 2025, the Company's proportionate share of TZRC's net income (loss), before basis adjustments, was $12.2 million of net income and $0.6 million of net loss, respectively. After giving effect to basis adjustments, the Company recognized Equity in earnings of unconsolidated joint venturein the Company's Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) of $5.4 million and $2.2 million for thethree months ended September 30, 2026 and 2025, respectively, and $17.5 million and $4.6 million for thenine months ended September 30, 2026 and 2025, respectively. The carrying value of the Company's investment in TZRC was $35.2 million and $45.2 million as of September 30, 2026 and December 31, 2025, respectively, and is included in the Company's Unaudited Condensed Consolidated Balance Sheets.

Note 10. Goodwill

The Company performed its annual goodwill impairment test as of September 30, 2026, its new annual testing date (see Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Impairment of goodwill), in accordance with FASB ASC Topic 350, Intangibles—Goodwill and Other("ASC 350"). The Company's goodwill is fully attributable to its Compute reporting unit, which is its Compute operating segment and reportable segment. The Company elected to bypass the qualitative assessment and proceeded directly to a quantitative impairment test. The quantitative impairment test used the income approach, based on future estimated cash flows discounted to their present value, to estimate the fair value of the reporting unit. The estimated fair value exceeded the carrying amount of the reporting unit, and no goodwill impairment was necessary.

Goodwill decreased from $210.1 million as of December 31, 2025 to $208.2 million as of September 30, 2026 due to foreign currency translation adjustments. The Company hadno accumulated goodwill impairment losses as of September 30, 2026 and December 31, 2025.

Note 11. Loans, notes payable, and other financial liabilities

Details of the Company's loans, notes payable, and other financial liabilities are as follows:

(1)

See Revolving Credit Facility below for additional information

(2)

See Two Prime Credit Facility below for additional information

(3)

See Other financial liability below for additional information

Recourse debt consists of debt that is a direct obligation of Hut 8 Corp., the ultimate parent company, or an obligation of certain of the Company's subsidiaries that is guaranteed by Hut 8 Corp. Non-recourse debt consists of debt of certain of the Company's subsidiaries for which recourse is limited to the assets of the applicable subsidiaries or, in certain cases, solely to the collateral pledged under the applicable agreement.

The following table outlines maturities of the Company's long-term debt, including the current portion, as of September 30, 2026:

During the three months ended September 30, 2026 and 2025, total principal payments of the Company's debt were $9.9 million and $36.5 million, respectively. During thethree months ended September 30, 2026 and 2025, the Company recorded amortization of debt issuance costs, included in interest expense, of $1.8 million and $0.3 million, respectively. During thethree months ended September 30, 2026 and 2025, interest expense related to the Company's debt was $105.5 million and $8.1 million, respectively. During thethree months ended September 30, 2026, total interest cost incurred was $122.0 million, of which $16.5 million was capitalized to construction in progress, with the remainder recognized as interest expense in the Company's Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). No interest was capitalized during thethree months ended September 30, 2025.

During the nine months ended September 30, 2026 and 2025, total principal payments of the Company's debt were $227.6 million and $36.5 million, respectively. During thenine months ended September 30, 2026 and 2025, the Company recorded amortization of debt issuance costs, included in interest expense, of $2.9 million and $0.5 million, respectively. During thenine months ended September 30, 2026 and 2025, interest expense related to the Company's debt was $165.7 million and $24.5 million, respectively. During thenine months ended September 30, 2026, total interest cost incurred was $188.1 million, of which $22.2 million was capitalized to construction in progress, with the remainder recognized as interest expense. No interest was capitalized during thenine months ended September 30, 2025. See Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Capitalized interest for the Company's capitalized interest accounting policy.

The Company accounts for all of its loans and notes payable in accordance with FASB ASC Topic 470, Debt ("ASC 470"), ASC 815, and FASB ASC Topic 480, Distinguishing Liabilities from Equity ("ASC 480"). The Company evaluated all of its loans and notes payable to determine if there were any embedded components that qualified as derivatives to be separately accounted for.

Coinbase credit facility

A wholly owned subsidiary of the Company was party to a credit facility with Coinbase Credit, Inc. ("Coinbase"). The original credit facility was established on June 26, 2023 (the "Original Credit Facility") and was subsequently amended and restated on each of January 12, 2024, June 17, 2024, June 16, 2025, and December 22, 2025 (as amended and restated through December 22, 2025, the "Fourth Amended and Restated Credit Agreement"). The Original Credit Facility provided for an interest rate of 5.0% plus the greater of (i) the U.S. Federal Funds Target Rate –Upper Bound and (ii)3.25%. On or prior to a drawdown, the Company was required to pledge, as collateral, Bitcoin with a custodian, Coinbase Custody Trust Company, LLC ("Coinbase Custody"), to be held in a segregated custody account under the Company's ownership, such that the loan-to-value ("LTV") ratio of principal outstanding amount of the loan and the fair value of collateral is equal to or less than 60%. If the value of the collateral under the credit facility decreased past a specified margin, the Company could have been required to post additional Bitcoin as collateral.

Under the terms of the Fourth Amended and Restated Credit Agreement, the total principal amount available under the facility increased by $70.0 million to up to $200.0 million. Borrowed amounts bore interest at 9.0% per annum and were scheduled to mature on June 16, 2026. The Company drew the additional funds made available under the Fourth Amended and Restated Credit Agreement in full on December 22, 2025.

The Company's obligations under the Fourth Amended and Restated Credit Agreement were secured by the Company's interest in certain Bitcoin held in the custody of Coinbase Custody and Coinbase's recourse was limited to such Bitcoin held in the custody of Coinbase Custody.

In May 2026, the Company repaid the outstanding obligations in full and terminated the Coinbase credit facility using proceeds from a term loan with FalconX Charlie, Inc. ("FalconX"), and the related Bitcoin collateral was released to the Company and became unencumbered. See FalconX Term Loan below for further details on the Company's term loan with FalconX.

Two Prime Credit Facility

On August 25, 2025, a wholly owned subsidiary of the Company entered into a credit agreement (the "Two Prime Credit Agreement") with Two Prime Lending Limited ("Two Prime").

The Two Prime Credit Agreement provided for a revolving credit facility of up to $200.0 million. Amounts borrowed under the Two Prime Credit Agreement would have borne interest at a rate equal to 7.99% per annum. The facility would have matured 364 days after the date of the first borrowing.

In September 2026, the Company terminated the Two Prime Credit Agreement, under which $200.0 million of undrawn capacity had been available. The Company did not draw on the facility at any time prior to its termination.

FalconX Term Loan

On May 1, 2026, the Company entered into a $200.0 million Bitcoin-collateralized term loan with FalconX Charlie, Inc. (the "FalconX Term Loan"). The FalconX Term Loan bears a fixed interest rate of 7.0% per annum and matures on April 30, 2027. Proceeds from the FalconX Term Loan were used to repay in full the outstanding obligation and terminate the Fourth Amended and Restated Credit Agreement with Coinbase, which bore a fixed interest rate of 9.0% at the time of repayment.

The Company may prepay the FalconX Term Loan, in whole or in part, at any time after the date that is six months following the closing date without penalty. Any prepayment or termination effected prior to that date is subject to an early termination fee ranging from 0.125% to 0.25% of the principal amount returned prior to maturity.

The FalconX Term Loan is secured by Bitcoin pledged as collateral by the Company and held in a segregated custody account, under the Company's ownership, with a third-party custodian. The lender's recourse is limited to the pledged Bitcoin collateral. Collateral requirements are based on fixed collateral-to-loan ratios. The facility is structured with an initial collateral ratio of 143%, with margin call and liquidation thresholds at 130% and 105%, respectively. Excess collateral may be returned to the Company when the collateral ratio exceeds 163% and certain conditions are met. As of September 30, 2026,4,850 Bitcoin with a fair value of $404.6 million were pledged as collateral under the FalconX Term Loan. A portion of this Bitcoin also serves as collateral for the Company's outstanding call options (see Call options in Note 12. Derivatives).

As of September 30, 2026, the outstanding principal balance of the FalconX Term Loan was $200.0 million and unamortized debt issuance costs were $0.1 million, resulting in a net carrying amount of $199.9 million.

TZRC Secured Promissory Note

The Company assumed the TZRC Secured Promissory Note on December 6, 2022 with an estimated fair value amount as of the date of investment of approximately $95.1 million as part of the consideration paid to acquire an equity membership interest in TZRC. The estimated fair value represents a discount of approximately $1.7 million from the carryover basis of the TZRC Secured Promissory Note. The discount is being amortized over the term of the TZRC Secured Promissory Note into interest expense.

The stated interest on the TZRC Secured Promissory Note accrues at a rate per annum equal to the lesser of (a) a varying rate per annum equal to the sum of (i) theprime rate as published in The Wall Street Journal, plus (ii)12.0% per annum, (b)15.25% per annum and (c) the maximum rate of non-usurious interest permitted by law. The Company has the option to defer the interest until maturity of the note under a paid-in-kind ("PIK") payment option. The Company elected to apply the PIK payment option. Accordingly, interest increases the principal amount of the TZRC Secured Promissory Note. PIK interest is payable upon maturity of the note in April 2027, unless or until any portion or all of the TZRC Secured Promissory Note is prepaid under a prepayment option. The Company is also subject to post-default interest of an additional 2% upon occurrence of an event of default. The higher interest rate applies from the date of non-payment until such amount is paid in full. As of September 30, 2026 and December 31, 2025, the interest rate on the TZRC Secured Promissory Note was 15.25%.

The TZRC Secured Promissory Note is secured by a first priority security interest in the Company's membership interest in TZRC. The Company is not a guarantor of the TZRC Secured Promissory Note, and there is no recourse to the Company.

The PIK interest for the three months ended September 30, 2026 and 2025 was $1.2 million and $2.4 million, respectively. The PIK interest for thenine months ended September 30, 2026 and 2025 was $4.4 million and $8.9 million, respectively. During thenine months ended September 30, 2026, the Company made principal payments of $27.6 million on the TZRC Secured Promissory Note. As of September 30, 2026, approximately $26.4 million of principal and PIK interest, exclusive of a $0.2 million discount, was outstanding under the TZRC Secured Promissory Note, with payment of principal and PIK interest due upon the first to occur of (a) the date that isfive years from origination on April 8, 2022, (b) the date of any event of dissolution of TZRC, and (c) the date of the closing of certain events specified in TZRC's governing documents.

In October 2026, the Company paid the remaining principal balance and PIK interest of the TZRC Secured Promissory Note in full. The remaining unamortized debt discount was recorded to interest expense upon repayment in October 2026.

Coatue Note (convertible note)

On June 21, 2024, the Company entered into a Convertible Note Purchase Agreement (the "Purchase Agreement") with Coatue Tactical Solutions Lending Holdings AIV 3 LP (the "Coatue Fund"), and a subsidiary of the Company (the "Guarantor") providing for the purchase and sale of a convertible note (the "convertible note") in the principal amount of $150.0 million (such amount, together with any PIK interest accrued from time to time, the "Accreted Principal Amount"). The convertible note was a senior unsecured obligation of the Company and guaranteed by the Guarantor pursuant to a Guaranty Agreement. On June 28, 2024, the Company issued the convertible note to the Coatue Fund (the "Coatue Note").

The convertible note bore interest at a rate of 8.00% per year, payable quarterly in arrears on each March 31, June 30, September 30, and December 31, commencing September 30, 2024. Interest could be PIK or paid in cash, at the Company's option. The convertible note had an initial term offive years and could be extended, at the Company's option, for up tothree additionalone-year terms. At maturity (unless earlier converted, redeemed, or repurchased), the Company would have been required to pay the Coatue Fund the Accreted Principal Amount, together with any accrued and unpaid interest thereon.

During the term of the convertible note, the convertible note was convertible from time to time, in whole or in part, into shares of the Company's common stock at the option of the Coatue Fund. The initial conversion price of the convertible note was $16.395 per share of common stock, subject to certain anti-dilution adjustments.

The Coatue Fund had the right to require the Company to repurchase all, but not less than all, of the convertible note upon a change of control or a delisting on a U.S. stock exchange. If the implied valuation of such event was at least $11.50 per share of the Company's common stock, the mandatory redemption price would have been 150% of the original principal amount of the convertible note ("Contingent Repurchase Right"), and if the implied valuation of such event was less than $11.50 per share of the Company's common stock, the redemption price would have been equal to the Accreted Principal Amount, together with any accrued and unpaid interest as of the redemption date.

Beginning on the two-year anniversary of the convertible note's issuance and continuing until its maturity, the Company would have had the right, from time to time, to redeem all or any portion of the convertible note for a redemption price equal to 100% of the Accreted Principal Amount, together with any accrued and unpaid interest as of the redemption date if (i) the closing price of the Company's common stock equaled or exceeded 150% of the then-applicable conversion price for a specified period of time and (ii) there was an effective registration statement covering the resale of any shares of the Company's common stock issued upon conversion of the convertible note or, in the alternative, the shares of the Company's common stock issuable pursuant to the convertible note to the extent the Coatue Fund converted at the time were freely tradable by the Coatue Fund pursuant to Rule 144 under the U.S. Securities Act of 1933, as amended (including without any restriction on volume), subject to a daily redemption limitation such that the number of shares of the Company's common stock into which the Accreted Principal Amount to be redeemed would be converted did not exceed, after giving effect to such conversion,100% of the average daily trading volume of the Company's common stock calculated over a specified period of time.

The Purchase Agreement included certain representations, warranties, and covenants, including limitations on the ability of the Company and the Guarantor to incur indebtedness, make certain restricted payments and investments, and enter into affiliate transactions, subject to certain exceptions enumerated in the Purchase Agreement. The Company could consummate a transaction restricted by the foregoing covenants without the Coatue Fund's consent, so long as it substantially concurrently and as a condition thereto repurchased the convertible note in full from the Coatue Fund for an amount in cash equal to the greater of (i)120% of the original principal amount of the convertible note and (ii) the Accreted Principal Amount, plus accrued and unpaid interest to the date of such repurchase. The Purchase Agreement also set forth certain standard events of default upon which the convertible note could be declared immediately due and payable.

As described in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Derivatives, the Company identified and separated an embedded derivative, the Contingent Repurchase Right, from the convertible note. The remaining debt host contract was discounted by the initial fair value of the separated embedded derivative from the convertible note ofnil and was offset by issuance costs. The debt host contract of the convertible note was subsequently measured at amortized cost, and the debt discount and issuance costs were amortized to interest expense over the expected term of the host contract using the effective interest method. The convertible note had an effective interest rate of 8.24% and its contractual interest expense wasnil and $4.5 million for thethree and nine months ended September 30, 2026, respectively. The amortization of debt discount and issuance costs for the three and nine months ended September 30, 2026 wasnil and $0.1 million, respectively. The separated embedded derivative from the convertible note was initially recorded at nil. See Note 12. Derivatives for a discussion of the separated embedded derivative from the convertible note.

In May 2026, the Coatue Fund converted the full Accreted Principal Amount of the Coatue Note of $159.3 million into 9,715,476 shares of the Company's common stock at the original conversion price of $16.395 per share. Accrued and unpaid interest through the conversion date of $1.3 million, together with a de minimis amount in lieu of a fractional share, was paid in cash. Upon conversion, the Company (1) derecognized the net carrying amount of the convertible note of $158.6 million and the related separated embedded derivative from the convertible note ofnil and (2) recorded $158.5 million to additional paid-in capital and $0.1 million to common stock in connection with the issuance of the shares of the Company's common stock. As of September 30, 2026, there wasno outstanding principal amount, unamortized debt discount and issuance costs, or net carrying amount related to the Coatue Note.

River Bend Notes

On April 30, 2026, Hut 8 DC LLC ("Hut 8 DC"), an indirect wholly owned subsidiary of the Company, issued $3.25 billion aggregate principal amount of 6.192% senior secured notes due November 15, 2042 (the "River Bend Notes") in a private offering. The River Bend Notes were issued at par.

Interest on the River Bend Notes is payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2026. Scheduled principal payments commence on May 15, 2028 and continue semi-annually through maturity. The River Bend Notes may be redeemed before their par call date of May 15, 2042 at a make-whole redemption price and thereafter at 100% of the principal amount, in each case plus accrued and unpaid interest. Upon the occurrence of certain events, including a qualifying change of control, Hut 8 DC may be required to offer to repurchase the River Bend Notes.

Gross proceeds from the issuance were $3.25 billion and debt issuance costs were $54.0 million. The proceeds are being used to (1) finance a portion of the development and construction of a 245 MW critical IT capacity data center and related substation infrastructure at the Company's River Bend site in St. Francisville, Louisiana, (2) reimburse the Company for a portion of its prior equity contributions to Hut 8 DC used to fund the project, (3) fund debt service reserves, and (4) pay fees and expenses of the offering. The data center is leased in its entirety to Fluidstack USA IV Inc. ("Fluidstack") and rent payable under the lease is the principal source of cash flow expected to service the River Bend Notes. The lease agreement is supported by a financial backstop provided by Google LLC for rent payments and certain other financial obligations thereunder.

The River Bend Notes are secured by first-priority liens on substantially all assets of Hut 8 DC, including the applicable project accounts, and by a pledge of the equity interests in Hut 8 DC. The River Bend Notes are obligations solely of Hut 8 DC and are not guaranteed by the Company, the tenant, or the lease guarantor.

The indenture governing the River Bend Notes contains customary restrictive covenants and requires Hut 8 DC to maintain certain project accounts, including a debt service reserve account. Proceeds held in project accounts for construction and debt service are included in Restricted cash and cash equivalents and Restricted short-term investments on the Company's Unaudited Condensed Consolidated Balance Sheets.

As of September 30, 2026, the aggregate principal balance of the River Bend Notes was $3.25 billion. Unamortized debt issuance costs were $52.5 million, resulting in a net carrying amount of $3.20 billion. The debt issuance costs are being amortized over the term of the River Bend Notes using the effective interest method. As of September 30, 2026, the effective interest rate on the River Bend Notes was 6.41% and the estimated fair value was $3.05 billion, determined using Level 2 inputs. The River Bend Notes are carried at amortized cost.

Beacon Point Notes

On June 9, 2026, Beacon Point DC LLC ("Beacon Point DC"), an indirect wholly owned subsidiary of the Company, issued $4.25 billion aggregate principal amount of 6.129% senior secured notes due November 30, 2042 (the "Beacon Point Notes") in a private offering. The Beacon Point Notes were issued at par.

Interest on the Beacon Point Notes is payable semi-annually in arrears on May 30 and November 30 of each year, beginning on November 30, 2026. Scheduled principal payments commence on May 30, 2030 and continue semi-annually through maturity. The Beacon Point Notes may be redeemed before the applicable par call date of May 30, 2042 at a make-whole redemption price and thereafter at 100% of the principal amount, in each case plus accrued and unpaid interest. Upon the occurrence of certain events, including a qualifying change of control, Beacon Point DC may be required to offer to repurchase the Beacon Point Notes.

Gross proceeds from the issuance were $4.25 billion and debt issuance costs were $46.4 million. The proceeds are being used to (1) finance the development and construction of a 352 MW critical IT capacity data center and related substation infrastructure at the Company's Beacon Point site in Nueces County, Texas, (2) fund the debt service reserves, and (3) pay fees and expenses of the offering. The data center is leased in its entirety to a high-investment-grade company under a triple-net lease. Rent payable under the lease is expected to be the principal source of cash flow used to service the Beacon Point Notes.

The Beacon Point Notes are secured by first-priority liens on substantially all assets of Beacon Point DC, including the applicable project accounts, and by a pledge of the equity interests in Beacon Point DC. The Beacon Point Notes are obligations solely of Beacon Point DC and are not guaranteed by the parent company, the tenant, or any of their respective subsidiaries or affiliates.

The indenture governing the Beacon Point Notes contains customary restrictive covenants and requires Beacon Point DC to maintain certain project accounts, including a debt service reserve account. Proceeds held in project accounts for construction and debt service are included in Restricted cash and cash equivalents and Restricted short-term investments on the Company's Unaudited Condensed Consolidated Balance Sheets.

As of September 30, 2026, the aggregate principal balance of the Beacon Point Notes was $4.25 billion. Unamortized debt issuance costs were $45.5 million, resulting in a net carrying amount of $4.20 billion. The debt issuance costs are being amortized over the term of the Beacon Point Notes using the effective interest method. As of September 30, 2026, the effective interest rate on the Beacon Point Notes was 6.27% and the estimated fair value was $3.90 billion, determined using Level 2 inputs. The Beacon Point Notes are carried at amortized cost.

Revolving Credit Facility

On September 24, 2026, the Company entered into a credit agreement (the "Revolving Credit Agreement") with JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, and the lenders party thereto from time to time, providing for a $1.07 billion senior secured revolving credit facility (the "Revolving Credit Facility"), including a $1.07 billion letter of credit sublimit. The Revolving Credit Facility matures on September 24, 2030, and amounts may be borrowed, repaid, and reborrowed until maturity. Borrowings bear interest, at the Company's option, at Adjusted Term Secured Overnight Financing Rate ("SOFR") (subject to a 0.00% floor) plus 1.50% to 2.00% per annum or an alternate base rate plus 0.50% to 1.00% per annum, based on the Company's consolidated total debt to market capitalization ratio, and the Company pays a commitment fee of 0.25% per annum on unused commitments.

The obligations under the Revolving Credit Agreement are guaranteed by certain of the Company's subsidiaries and secured by a first-priority lien on substantially all of the assets of the Company and the guarantors, subject to certain exclusions. The Revolving Credit Agreement contains customary affirmative and negative covenants and events of default, and, beginning with the fiscal quarter ending March 31, 2027, requires the Company to maintain minimum liquidity of 40% of the aggregate commitments prior to the Stabilization Date (as defined therein) and 25% thereafter.

Debt issuance costs of $10.5 million were recorded in Deposits, prepaid expenses, and other assets and are being amortized to interest expense over the term of the Revolving Credit Facility. As of September 30, 2026, the Company hadno outstanding borrowings. Subsequent to September 30, 2026, the Company issued a letter of credit totaling $3.9 million under the Revolving Credit Facility.

Other financial liability

In February 2025, a consolidated subsidiary of the Company entered into a simple agreement for future equity ("SAFE agreement") for a purchase amount of $3.5 million with a related party entity controlled by a person related to a member of the issuing subsidiary's management. Pursuant to the terms of the SAFE agreement, on the closing of equity financing while the SAFE agreement is outstanding, the SAFE agreement will automatically convert into the number of shares of preferred stock of the subsidiary equal to the purchase amount divided by the lowest price per share of the Standard Preferred Stock (as defined in the SAFE agreement). The SAFE agreement was classified as a liability pursuant to ASC 480. The SAFE agreement is subject to revaluation at the end of each reporting period, with changes in its fair value recognized in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

As of September 30, 2026, solely for the purposes of estimating the fair value of the SAFE agreement, the Company estimated an equity conversion probability of 85% within 12 months and a SAFE agreement liquidity event probability of 15% within 12 months. The Company also included the following inputs in estimating the fair value of the SAFE agreement using the PWERM:

The following table provides a summary of activity and change in fair value of the SAFE agreement (Level 3 liability):

Note 12. Derivatives

The following table presents the Company's Unaudited Condensed Consolidated Balance Sheets classification of derivatives carried at fair value:

The following table presents the effect of derivatives on the Company's Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss):

Bitcoin redemption and put options

During December 2024, the Company pledged approximately 968 Bitcoin with Bitmain in connection with its purchase of approximately 30,000 Bitmain Antminer S21+ ASIC miners under the Bitmain Purchase Agreement. Under the arrangement, the Company had the option to redeem the pledged Bitcoin at a mutually agreed upon fixed price, which started from the shipment date of the purchased ASIC miners and originally ended three months thereafter. The amount of Bitcoin that could be redeemed was pro-rata of the percentage of miners shipped on a compute power (hashrate) basis. During 2025 and January 2026, the Company amended the redemption period multiple times, extending the date by which the pledged Bitcoin could be redeemed. As noted in Note 6. Digital assets, during January 2026, the Bitcoin redemption option's redemption period lapsed, and the Company derecognized the option at its fair value of $19.7 million, which, together with the pledged Bitcoin, settled the related miner purchase liability of $100.9 million. The Company accounted for this Bitcoin redemption option as a Level 2 derivative asset as noted in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Derivatives. The Company previously accounted for this Bitcoin redemption option as a Level 3 derivative asset as of December 31, 2024 due to a significant unobservable input included in the fair value estimate of the Bitcoin redemption option, which was the estimated shipment date of the purchased ASIC miners. During the fiscal year ended 2025, the shipment date was finalized and therefore was no longer an unobservable input.

As part of the 2025 ABTC Bitmain Purchase Agreement, in August, September, and October 2025, American Bitcoin pledged Bitcoin with Bitmain in connection with a purchase of approximately 17,280 U3S21EXPH ASIC miners. The total amount of Bitcoin pledged was approximately 2,776 Bitcoin. American Bitcoin pledged the Bitcoin infour tranches, two tranches in August 2025, one tranche in September 2025, andone tranche in October 2025. American Bitcoin has the option to redeem the pledged Bitcoin at a mutually agreed upon price starting from and for up totwenty-four months after the day immediately following each pledge date and loses the right to redeem the pledged Bitcoin should it not redeem them by the end of the redemption period. The Company accounted for this Bitcoin redemption option as a Level 2 derivative asset as noted in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Derivatives. As part of the purchase of the U3S21EXPH ASIC miners, the Company paid cash of approximately $46.0 million as a deposit and for certain expenses. American Bitcoin had an option to replace the $46.0 million cash paid with a Bitcoin pledge on or before November 5, 2025. In October 2025, American Bitcoin exercised its option to replace the $46.0 million cash paid with a Bitcoin pledge by pledging an additional 391 Bitcoin at a mutually agreed upon fixed price, and Bitmain refunded the Company's $46.0 million comprising the deposit and certain expenses.

In February 2026, in connection with the 2026 ABTC Bitmain Purchase Agreement, American Bitcoin pledged approximately 314 Bitcoin with Bitmain representing 80% of the purchase price of approximately 11,298 S21 XP ASIC miners. American Bitcoin has the option to redeem the pledged Bitcoin at a mutually agreed upon price starting from and for up totwenty-four months after the day immediately following the pledge date and loses the right to redeem the pledged Bitcoin should it not redeem them by the end of the redemption period. As part of the agreement, American Bitcoin has an option to extend the pledge period for an additional twelve months. American Bitcoin also has the option to pay the remaining 20% of the purchase price under the 2026 ABTC Bitmain Purchase Agreement by pledging Bitcoin at a mutually agreed upon floor price, which is due one year after the shipment date of the S21 XP ASIC miners. The Company accounted for this Bitcoin redemption and put option as a Level 2 derivative asset as noted in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Derivatives.

The following table provides a summary of activity and change in fair value of the Company's Bitcoin redemption and put options during the periods in which the instruments were classified within Level 3 of the fair value hierarchy. There was no Level 3 activity related to these instruments during the three and nine months ended September 30, 2026, or the three months ended September 30, 2025.

(1)

The Bitcoin redemption and put options were transferred out of Level 3 during the nine months ended September 30, 2025 due to changes in the observability of inputs used in the valuation

Call options

As noted in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Derivatives, from time to time, the Company has sold call options on Bitcoin to generate cash flow on a portion of its digital assets. In connection with these call options, the Company has pledged Bitcoin as collateral withone of its digital asset custodians, and such Bitcoin also serves as collateral for its FalconX Term Loan. In 2025, the Company pledged Bitcoin as collateral in a quantity equal to the notional amount of the call options sold. The call options are only exercisable upon the date of expiry, are automatically exercised if the underlying reference price is greater than the strike price of the call option, and are settled with delivery of the underlying Bitcoin. The reference price is the Coinbase exchange Bitcoin price quoted in U.S. dollars. Call options are carried at fair value and are Level 2 liabilities as noted in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements – Fair value measurement.

During the nine months ended September 30, 2025, (1) call options on 1,500 Bitcoin notional expired with the underlying reference price below their strike prices, resulting in a gain of $12.1 million; (2) the Company rolled a call option on 500 Bitcoin notional by exchanging its previously outstanding call option for a new call option on the same Bitcoin notional, received $0.8 million in cash, and recorded a gain of $4.2 million; (3) the Company sold an additional call option on 1,000 Bitcoin notional in July 2025 with the same features as above and received $5.0 million in cash and, later that month, rolled the option to a later expiry date for nil premium on the same Bitcoin notional, resulting in a loss of $2.3 million; (4) the Company sold an additional call option on 2,000 Bitcoin notional in August 2025 with the same features as above and received $3.7 million in cash; and (5) the Company recorded an unrealized gain of $9.5 million related to changes in the fair value of outstanding call options.

During the nine months ended September 30, 2026, the Company (1) sold call options on 2,000 Bitcoin notional and received $0.9 million in cash, with the options subsequently expiring with the underlying reference price below their strike prices; (2) sold call options on 2,000 Bitcoin notional and received $1.6 million in cash; and (3) recorded an unrealized gain of $0.6 million related to changes in the fair value of outstanding call options.

Separated embedded derivative from the convertible note

In June 2024, as noted in Note 11. Loans, notes payable, and other financial liabilities, the Company issued a convertible note, the Coatue Note, with embedded derivatives and separated the Contingent Repurchase Right embedded derivative. The separated embedded derivative from the convertible note was separated from its debt host contract and was accounted for as a derivative liability carried at fair value in accordance with ASC 815. The separated embedded derivative from the convertible note was a Level 3 liability. A significant unobservable input included in the fair value estimate of the separated embedded derivative from the convertible note was management's estimate of the Contingent Repurchase Right's probability of occurrence, which was remote as at inception and throughout the term of the convertible note. As such, the initial fair value of the separated embedded derivative from the convertible note wasnil and the fair value immediately before the debt host contract was converted wasnil. Given the debt host contract was converted into shares of common stock of the Company in May 2026, the separated embedded derivative from the convertible note was also derecognized concurrently.

Separated embedded derivative from Investment Tokens

During the nine months ended September 30, 2025, the Company purchased Investment Tokens pursuant to a TPA. For purchased but yet to be received Investment Tokens, an embedded derivative was identified and separated from the TPA host contract. The Company accounted for the TPA host contract at cost, while the separated embedded derivative from Investment Tokens was accounted for as a derivative liability carried at fair value in accordance with ASC 815. The fair value of the separated embedded derivative from Investment Tokens was determined based on its intrinsic value, which is the difference between the market price of the Investment Tokens on measurement date and the purchase price. The separated embedded derivative from Investment Tokens was a Level 2 liability given all inputs used to estimate its fair value were observable, but the derivative itself was not traded in an active market. The initial fair value of the separated embedded derivative from Investment Tokens wasnil and the fair value as of September 30, 2025 was $5.4 million. The separated embedded derivative from Investment Tokens was derecognized in 2025 when the Company received custody of its Investment Tokens. See Note 6. Digital assets for further information on the Investment Tokens.

Warrant liability

On March 31, 2025, a wholly owned subsidiary of the Company contributed substantially all of the Company's ASIC miners to American Data Centers Inc. in exchange for an 80% interest in American Data Centers Inc. In connection with the transaction, American Data Centers Inc. was subsequently renamed as American Bitcoin Corp. ("Historical ABTC").

On May 9, 2025, Gryphon Digital Mining, Inc., a Delaware corporation ("Gryphon"), GDM Merger Sub I Inc., a Delaware corporation and wholly owned direct subsidiary of Gryphon ("Merger Sub Inc."), GDM Merger Sub II LLC, a Delaware limited liability company and wholly owned direct subsidiary of Gryphon ("Merger Sub LLC"), and Historical ABTC, a majority owned subsidiary of the Company, entered into an Agreement and Plan of Merger (the "ABTC Merger Agreement").

On September 3, 2025, in accordance with the terms of the ABTC Merger Agreement, among other things, (i) Merger Sub Inc. merged with and into Historical ABTC, with Historical ABTC surviving the merger (the "First Merger") as a wholly owned direct subsidiary of Gryphon (the corporation surviving the First Merger, the "First Merger Surviving Corporation") and (ii) immediately after the First Merger, the First Merger Surviving Corporation merged with and into Merger Sub LLC, with Merger Sub LLC surviving the merger (the "Second Merger" and, taken together with the First Merger, the "ABTC Merger") as a wholly owned direct subsidiary of Gryphon. Gryphon was renamed American Bitcoin Corp. ("American Bitcoin") after the completion of the ABTC Merger (the "Closing").

In connection with the ABTC Merger, warrants to purchase Gryphon common stock (the "ABTC-Gryphon Warrants") outstanding immediately before the ABTC Merger were assumed by American Bitcoin. Post-ABTC Merger, the warrant holders are entitled to receive, upon exercise, in lieu of Gryphon common stock, shares of Class A common stock of American Bitcoin. The ABTC-Gryphon Warrants have an exercise price of $1.50 per share after giving effect to the ABTC Merger and the ABTC Reverse Stock Split (as defined in Note 14. Equity), neither of which resulted in an adjustment to the exercise price. These warrants expire in January 2035.

In connection with the ABTC Merger, American Bitcoin assumed 91,551 ABTC-Gryphon Warrants. As of September 30, 2026, there were 5,947 ABTC-Gryphon Warrants outstanding. These warrant quantities reflect the effect of the ABTC Reverse Stock Split; see Note 14. Equity for additional information.

The ABTC-Gryphon Warrants meet the definition of a derivative under ASC 815, and due to the terms of the warrants, are required to be liability classified. The ABTC-Gryphon Warrants are carried at fair value, and are Level 3 liabilities as noted in Note 2. Basis of presentation, summary of significant accounting policies and recent accounting pronouncements.

As of September 30, 2026, the Company estimated the fair value of the ABTC-Gryphon Warrants using the Black-Scholes pricing model with the following inputs:

The following table provides a summary of activity and change in fair value of the ABTC-Gryphon Warrants (Level 3 derivative liability).

Note 13. Leases

The Company's operating leases are for its offices and certain of its mining facilities and data centers. The Company's subsidiaries previously had finance leases, which were primarily related to equipment used at its data centers and the power plant located in Iroquois Falls, Ontario under the Far North JV. As of December 31, 2025, the Company classified the right-of-use asset and lease liability related to the finance lease as assets and liabilities held for sale due to the Far North JV sale described in Note 3. Far North JV sale. The Company does not have any finance leases as of September 30, 2026.

The following table shows the right-of-use assets and lease liabilities as of September 30, 2026 and December 31, 2025:

The Company's lease costs comprised the following:

The following table presents supplemental lease information:

(1)

The Company's operating leases do not provide an implicit rate, therefore the Company uses the incremental borrowing rate at the lease commencement date in determining the present value of lease payments. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis for similar assets over the term of the lease.

The following table presents the Company's future minimum operating lease payments as of September 30, 2026:

As of September 30, 2026, there wereno future finance lease payments.

Note 14. Equity