Eightco Holdings Inc.
For the period ended Mar 31, 2026. Filed May 15, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 15, 2026
ORBS$0.75+3.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-14.
0001493152-25-023549
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001493152-26-023890
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 150 previous paragraphs and 131 current paragraphs.
83 unchanged; 23 reworded; 25 added; 40 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 19 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
Eightco Holdings Inc. (NASDAQ: ORBS) is building the authentication and trust layer for the post-AGI world. Through a first-of-its-kind Worldcoin digital asset treasury strategy and a portfolio of strategic investments in frontier technology companies, the Company is establishing a universal foundation for digital identity and Proof of Human (PoH) verification. The Company’s mission is organized around three core pillars: consumer authentication, enterprise authentication, and gaming authentication.
Current report
The Company also operates Forever 8, an e-commerce inventory solutions business acquired in October 2022, which represents its sole revenue-generating operating segment.
Current report
Our corporate headquarters are located in Easton, Pennsylvania, and our common stock is listed on the Nasdaq Capital Market under the symbol “ORBS.”
Current report
Forever 8
Current report
Forever 8 provides funding solutions and inventory management services for e-commerce businesses, enabling sellers to maintain optimal stock levels without tying up their own capital. Forever 8 is the Company’s sole operating segment and primary source of revenue. For the fiscal years ended December 31, 2025 and 2024, Forever 8 generated revenues of $32,981,126 and $39,621,272, respectively. Forever 8’s revenue base is highly concentrated, with one customer representing approximately 89% and 75% of total revenues for the fiscal years ended December 31, 2025 and 2024, respectively.
Current report
Our holdings consist primarily of:
Current report
Cost of Revenues
Current report
Cost of Revenues
Current report
The Company recognized a gain on extinguishment of liabilities of $870,000 for the three months ended March 31, 2026. The gain on extinguishment of liabilities was related to fulfilling the terms of settlement agreements for past rents and severances. There was no comparable activity in the prior-year period.
Current report
Eightco Holdings Inc. funds its operations through a combination of equity and debt financing, including proceeds from its At-The-Market (“ATM”) offering program, private placement transactions, and borrowings under its line of credit facility. These proceeds were deployed primarily into the Company’s Digital Asset Treasury and strategic investments.
Current report
As of March 31, 2026, the Company had cash and cash equivalents of $7,546,486, compared to $58,501,108 as of December 31, 2025. In addition to cash, the Company held digital assets at fair value of $175,309,890 as of March 31, 2026. Combined cash and digital assets were approximately $182.9 million as of March 31, 2026. Total assets of $340,632,698 at March 31, 2026, and total liabilities of $18,304,512, resulting in total stockholders’ equity of $322,328,186 at March 31, 2026.
Current report
Outstanding debt as of March 31, 2026 consisted of $8,725,000 under the Company’s lines of credit and $400,000 under lines of credit with related parties, for a total outstanding lines of credit of $9,125,000. Outstanding debt as of December 31, 2025 consisted of $8,150,000 under the Company’s lines of credit and $2,590,000 under lines of credit with related parties, for a total outstanding lines of credit of $10,740,000, as reported in our Annual Report on Form 10-K. The lines of credit bear interest at rates ranging from 12% to 18% and are collateralized by the inventory of the Company.
Current report
The sale of the Ferguson Containers corrugated packaging business was completed on April 7, 2025. The Company received $557,835 in cash proceeds at closing plus a $2.5 million seller note receivable, and the buyer assumed certain liabilities. The divestiture generated a gain of $1,231,774 and eliminated the operating overhead associated with that business segment.
Current report
We deploy a substantial portion of ATM proceeds to acquire digital assets. As of March 31, 2026, we held digital assets at fair value of approximately $175.3 million, consisting primarily of Worldcoin (WLD), Ethereum (ETH), and U.S. dollar-denominated stablecoins. These assets are measured at fair value under ASU 2023-08, with changes recognized in net income, and are custodied with institutional-grade providers, including Kraken, Coinbase, and FalconX.
Current report
Strategic Private Company Investments
Current report
We also deploy liquidity into strategic equity investments in frontier technology companies as part of our long-term capital allocation strategy. In March 2026, we invested $92.6 million in indirect beneficial interests in OpenAI preferred stock, which represents approximately 30% of our total treasury position. We also invested approximately $18 million in Beast Industries, the business platform of content creator MrBeast. An additional $7 million capital commitment was callable through May 9, 2026, at which point the call period expired without being exercised. Additionally, in October 2025, we invested approximately $1 million in Series D Preferred Stock of Mythical, Inc., a developer of blockchain-based video game ecosystems.
Current report
Digital Asset Volatility
Current report
During Q1 2026, we recognized net losses of approximately $66.5 million related to changes in the fair value of digital assets, which materially affected reported results and may impact future liquidity planning given price volatility. Although our $115.6 million of near-cash liquidity (consisting of cash, short-term investments, and stablecoins) is not directly subject to WLD or ETH price movements, a sustained decline in the price of WLD or ETH would reduce the realizable value of our remaining $99.8 million of digital asset holdings and would limit the total liquidity available from our digital asset portfolio. We continue to monitor digital asset market conditions and may adjust our treasury strategy as appropriate.
Current report
Subsequent to March 31, 2026, we issued 19,054,067 shares under our ATM for proceeds of approximately $19.4 million. We also amended our consulting agreement to provide for a flat consulting fee equal to 1% of AUM across treasury and investment assets, which will affect cash outflows over the next 12 months. See Note 21 — Subsequent Events for additional information.
Current report
Net cash used in operating activities was $(4,691,568) during the three months ended March 31, 2026, which consisted primarily of the net loss of $(76,135,904), offset by noncash items including the change in fair value of digital assets of $66,501,874, share-based compensation of $5,141,071, depreciation and amortization of $5,102, and a gain on disposal of $(5,949). Changes in assets and liabilities used cash of $(197,762), primarily reflecting a decrease in accrued expenses and other current liabilities of $(1,244,749) and an increase in accounts receivable of $(34,254), partially offset by a decrease in prepaid expenses and other current assets of $706,642, a decrease in inventories of $325,798, and an increase in accounts payable of $48,801.
Current report
Net cash provided by operating activities was $999,824 during the three months ended March 31, 2025, which consisted primarily of the net loss of $(2,548,725), offset by noncash items including depreciation and amortization of $612,664 (continuing and discontinued operations) and amortization of debt issuance costs of $250,000. Changes in assets and liabilities provided cash of $2,685,885, primarily reflecting decreases in inventories of $1,852,604 and accounts receivable of $978,029, and an increase in accrued expenses and other current liabilities of $180,856, partially offset by a decrease in accounts payable of $(450,667), an increase in prepaid expenses and other current assets of $254,118, and changes in discontinued operations of $(129,055).
Current report
During the quarter ended March 31, 2026, the Company had an unfunded capital commitment of approximately $7 million to Beast Industries, which was committed for a period of 60 days following the Company’s initial investment. While not a variable interest or structured entity, this commitment represents a contractual obligation that, if called, would have had an impact on liquidity. The applicable period of the commitment expired on May 9, 2026.
Current report
Unfunded Capital Commitment. As of March 31, 2026, we had an unfunded capital commitment of approximately $7 million to Beast Industries, which was able to be called within 60 days of our initial investment and expired on May 9, 2026.
Current report
Consulting Fees. Under the Amended and Restated DACA, we are obligated to pay a consulting fee equal to 1% per annum of assets under management. Based on current AUM levels, we expect cash consulting fees of approximately $2.5 million to $3.5 million over the next 12 months.
Current report
Credit Facility Interest and Fees. Based on current borrowing levels and interest rates ranging from 12% to 18%, we expect interest expense and commitment fees under our credit facilities of approximately $1.2 million to $1.5 million over the next 12 months.
Removed paragraphs (40)
Previous report
During the quarter ended September 30, 2025, we adopted a new Digital Asset Treasury (“DAT”) Strategy, significantly increased our holdings of digital assets, and completed substantial capital-raising activities to support these initiatives. These actions represent material changes to our capital allocation strategy, financial condition, risk profile, and long-term operating model, and therefore require expanded disclosure in this Management’s Discussion and Analysis.
Previous report
We continue to operate Forever 8, our inventory funding business that provides inventory purchasing and financing solutions to e-commerce retailers. At the same time, we completed the wind-down of our prior Web3 operations and Bitcoin mining hardware sales, and on April 7, 2025, we sold the assets associated with our Packaging Business. Forever 8 now represents our sole operating business.
Previous report
During the quarter, we acquired digital assets with an aggregate fair value of approximately $287 million as of September 30, 2025. Our holdings consist primarily of:
Previous report
These actions were undertaken to eliminate structurally unprofitable arrangements and are expected to reduce ongoing losses in future periods.
Previous report
Nine Months Ended September 30, 2025 versus Nine Months Ended September 30, 2024
Previous report
Revenue
Previous report
For the nine months ended September 30, 2025, revenues were $22,793,160, compared to $19,298,336 for the nine months ended September 30, 2024, representing a increase of $3,494,824, or 18.11%. The increase was driven primarily by the Company’s cell phone business.
Previous report
Cost of revenues increased to $20,930,455 for the nine months ended September 30, 2025, compared to $14,980,682 for the nine months ended September 30, 2024, an increase of $5,9459,773, or 39.71%.
Previous report
The increase reflects a combination of:
Previous report
Gross Profit
Previous report
Gross profit decreased to $1,862,705 for the nine months ended September 30, 2025, compared to $4,317,654 for the nine months ended September 30, 2024, a decline of $2,454,949.
Previous report
The decrease resulted from:
Previous report
These items reflect the Company’s decision to eliminate unprofitable arrangements, which is expected to benefit future cash flow and margin profile.
Previous report
Operating Expenses
Previous report
Selling, general and administrative (“SG&A”) expenses were $10,683,465 for the nine months ended September 30, 2025, compared to $9,614,684 for the nine months ended September 30, 2024, an increase of $1,068,781, or 11.11%.
Previous report
Operating expenses in 2025 reflects offsetting factors:
Previous report
Restructuring and severance
Previous report
Restructuring and severance expenses were $0 for the nine months ended September 30, 2025 compared to $1,414,838 for the same period in 2024. The decrease reflects the completion of headcount rationalization and cost-reduction programs executed in 2024.
Previous report
Interest Expense
Previous report
Interest expense was $(3,660,662) for the nine months ended September 30, 2025, compared to $(4,047,639) for the prior-year period, reflecting lower average outstanding balances under the Company’s financing facilities.
Previous report
The Company recorded a loss of $(18,639,017) related to the change in fair value of its digital asset holdings for the nine months ended September 30, 2025. The Company did not hold digital assets in 2024.
Previous report
Gain on divestiture
Previous report
The Company recognized a $1,231,774 gain during the nine months ended September 30, 2025 related to the sale of assets of the Corrugated Packaging Business. There was no comparable gain in 2024.
Previous report
Gain on forgiveness of earnout
Previous report
Gain on forgiveness of earnout was $0 for the nine months ended September 30, 2025 versus $6,100,000 for the nine months ended September 30, 2024. The full amount of the earnout rights were forgiven in 2024.
Previous report
Gain on extinguishment of liabilities was $0 for the nine months ended September 30, 2025 versus $7,427,193 for the nine months ended September 30, 2024.
Previous report
Income (Loss) Before Income Taxes
Previous report
Loss before income taxes was $(19,696,807) for the nine months ended September 30, 2025, compared to income before income taxes of $2,845,330 for the nine months ended September 30, 2024. The variance is primarily attributable to:
Previous report
Income tax expense
Previous report
Net income (loss)
Previous report
Net loss was $(29,562,461) for the nine months ended September 30, 2025, compared to net income of $3,212,482 for the nine months ended September 30, 2024.
Previous report
Our liquidity position changed significantly during the quarter as a result of (i) the PIPE and ATM capital raises, (ii) the deployment of capital into digital assets as part of the DAT Strategy, and (iii) the ongoing financing needs of the Forever 8 operating business. We believe our current liquidity, including cash, cash equivalents, stablecoins, and other liquid digital assets, is sufficient to meet anticipated operating needs for at least the next twelve months.
Previous report
PIPE Financing
Previous report
The PIPE generated $270 million in gross proceeds, representing the most significant source of liquidity during the period.
Previous report
We deployed a substantial portion of PIPE and ATM proceeds to acquire digital assets totaling $287 million at fair value as of period end.
Previous report
Subsequent to September 30, 2025, we (i) acquired additional digital assets of approximately $71 million. We also (ii) issued $[●] million of equity under the ATM. These subsequent events do not change our conclusion regarding liquidity sufficiency for the next 12 months.
Previous report
Net cash used in operating activities was 1,279,248 during the nine months ended September 30, 2025, which consisted primarily of the net loss of $29,562,461 impacted by noncash items related to gain on divestiture of 1,231,774 offset depreciation and amortization of $1,764,410, amortization of debt issuance costs of $750,000, shared-based compensation of $2,476,906, change in fair value of digital assets of $18,639,017 and changes in assets and liabilities of $5,884,654.
Previous report
Net cash (used in) operating activities was ($1,085,865) during the nine months ended September 30, 2024, which consisted primarily of net income of $3,212,482, depreciation and amortization of $1,831,064, amortization of debt issuance costs of $1,087,750, and changes in assets and liabilities of $5,830,511 offset largely by gain on extinguishment of liabilities of $7,427,193 and gain on forgiveness of earnout of $6,100,000.
Previous report
The Company did not have any off-balance sheet arrangements as of September 30, 2025.
Previous report
See Note [ ] for fair value hierarchy, principal markets, and realized/unrealized gains and losses recognized in the period.
Reworded paragraphs (23)
Previous wording
On September 8, 2025, our Board of Directors approved the adoption of a Digital Asset Treasury Strategy under which Eightco holds digital assets, primarily Worldcoin (WLD and WCWLD), as part of a long-term treasury reserve framework. Under this policy, we may allocate excess liquidity, operating cash flows, and proceeds from financing transactions to the acquisition of digital assets.
Current wording
On September 8, 2025, our Board of Directors approved the adoption of a Digital Asset Treasury Strategy under which Eightco holds digital assets, primarily Worldcoin (WLD), as part of a long-term treasury reserve framework. Under this policy, we may allocate excess liquidity, operating cash flows, and proceeds from financing transactions to the acquisition of digital assets.
Previous wording
A significant portion of the PIPE and ATM proceeds was deployed to acquire digital assets. These capital raises materially strengthened our liquidity and expanded our balance sheet.
Current wording
A significant portion of the ATM proceeds were deployed to acquire digital assets and invest in strategic investments. These capital raises materially strengthened our liquidity and expanded our balance sheet.
Previous wording
Because we measure eligible crypto assets at fair value under ASU 2023-08, period-to-period changes in the market price of Worldcoin (WLD/WCWLD) and other digital assets will directly affect reported earnings and cash provided by (used in) operating activities to the extent realized on conversion. This may result in material earnings volatility unrelated to our Forever 8 operating performance.
Current wording
Because we measure eligible crypto assets at fair value under ASU 2023-08, period-to-period changes in the market price of Worldcoin (WLD) and other digital assets will directly affect reported earnings and cash provided by (used in) operating activities to the extent realized on conversion. This may result in material earnings volatility unrelated to our Forever 8 operating performance.
Previous wording
There were no material changes to our critical accounting policies during the three and nine months ended September 30, 2025, other than the adoption of ASU 2023-08, which requires eligible crypto assets to be measured at fair value with changes recognized in net income. Our significant accounting policies are described in Note 2 to the condensed consolidated financial statements included in this Quarterly Report and in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
There were no material changes to our critical accounting policies during the three months ended March 31, 2026, other than the adoption of ASU 2023-08, which requires eligible crypto assets to be measured at fair value with changes recognized in net income. Our significant accounting policies are described in Note 2 to the condensed consolidated financial statements included in this Quarterly Report and in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
Gain on extinguishment of liabilities includes gains recognized when outstanding liabilities are settled for amounts less than their carrying value, or when obligations are legally extinguished. No such gains were recorded during the periods presented.
Current wording
Gain on extinguishment of liabilities includes gains recognized when outstanding liabilities are settled for amounts less than their carrying value, or when obligations are legally extinguished.
Previous wording
For the three months ended September 30, 2025, revenues were $5,300,527, representing a decrease of $755,519, or 12.48%, compared to revenues of $6,056,046 for the three months ended September 30, 2024. The decrease reflects reduced order volumes from certain customers as the Company exited its liquidation-model operations and is in the process of winding down relationships where we previously were operating customer storefronts to mitigate losses.
Current wording
For the three months ended March 31, 2026, revenues were $7,561,965, representing a decrease of $2,352,022, or 23.7%, compared to revenues of $9,913,987 for the three months ended March 31, 2025. The decrease reflects cancellation of certain agreements with customers and reduced order volumes from certain customers as the Company exited its liquidation-model operations and is in the process of winding down relationships where we previously were operating customer storefronts to mitigate losses.
Previous wording
Cost of revenues was $5,496,377 for the three months ended September 30, 2025 compared to $4,451,185 for the three months ended September 30, 2024, a decrease of $1,045,192, or 23.49%. The decrease correlates to the reduction in volumes described above. Cost of revenues for the 2025 period also reflects the impact of product mix shifts and includes certain close-out reserved inventory costs associated with the exit from the liquidation model.
Current wording
Cost of revenues was $7,346,704 for the three months ended March 31, 2026, compared to $9,100,728 for the three months ended March 31, 2025, a decrease of $1,754,024, or 19.3%. The decrease correlates to the reduction in volumes described above.
Previous wording
Gross profit decreased to a loss of $195,850 for the three months ended September 30, 2025 compared to a gross profit of $1,604,861 for the three months ended September 30, 2024, a decline of $1,800,711.
Current wording
Gross profit decreased to $215,261 for the three months ended March 31, 2026, compared to gross profit of $813,259 for the three months ended March 31, 2025, a decline of $597,998, or 73.5%. The decrease was primarily driven by the decrease in revenues.
Previous wording
Selling, general and administrative (“SG&A”) expenses were $6,002,208 for the three months ended September 30, 2025, compared to $3,364,793 for the three months ended September 30, 2024, an increase of $2,637,415, or 78.40%.
Current wording
Selling, general and administrative (“SG&A”) expenses were $10,728,546 for the three months ended March 31, 2026, compared to $2,229,425 for the three months ended March 31, 2025, an increase of $8,499,121, or 381.2%.
Previous wording
Net interest expense totaled $(1,095,132) for the three months ended September 30, 2025, compared to $(1,525,274) for the three months ended September 30, 2024, reflecting lower average borrowings on the Company’s financing facilities.
Current wording
Net interest expense totaled $(276,718) for the three months ended March 31, 2026, compared to $(1,288,804) for the three months ended March 31, 2025, a decrease of $1,012,086, or 78.5%, reflecting lower average borrowings on the Company’s financing facilities.
Previous wording
The Company recognized a loss of $(18,639,017) related to fair value changes of its digital asset holdings during the three months ended September 30, 2025. The Company did not hold digital assets during the comparable 2024 period.
Current wording
The Company recognized a loss of $(66,501,874) related to fair value changes of its digital asset holdings during the three months ended March 31, 2026. The Company did not hold digital assets during the comparable 2025 period.
Previous wording
Other income increased to $87,991 for the three months ended September 30, 2025, from $22,830 in the prior-year period, primarily due to addition of the Reichard Corrugated Note.
Current wording
Other income increased to $279,954 for the three months ended March 31, 2026, from $21,898 in the prior-year period, an increase of $258,056, primarily due to addition of the Reichard Corrugated Note.
Previous wording
Loss before income taxes was $(25,844,216) for the three months ended September 30, 2025, compared to $(3,262,376) for the three months ended September 30, 2024. The increased loss is primarily attributable to the adoption of the Digital Asset Treasury strategy and the resulting fair value losses recognized during the period, as well as lower gross profit and higher SG&A expenses as well as asset write-downs due to the exiting of the liquidation business model for Forever 8.
Current wording
Loss before income taxes was $(76,135,904) for the three months ended March 31, 2026, compared to $(2,683,072) for the three months ended March 31, 2025. The increased loss is primarily attributable to the adoption of the Digital Asset Treasury strategy and the resulting fair value losses recognized during the period, as well as lower gross profit and higher SG&A expenses, as well as asset write-downs related to the exit from the liquidation business model for Forever 8.
Previous wording
Income tax benefit was $(28,793) for the nine months ended September 30, 2025, compared to $0 for the nine months ended September 30, 2024. The Company continues to maintain a full valuation allowance on its net deferred tax assets.
Current wording
Income tax expense was $0 for the three months ended March 31, 2026, compared to an income tax benefit of $(28,793) for the three months ended March 31, 2025. The Company continues to maintain a full valuation allowance on its net deferred tax assets.
Previous wording
Net loss from continuing operations was $(25,844,216) for the three months ended September 30, 2025, compared to $(3,177,373) for the three months ended September 30, 2024.
Current wording
Net loss from continuing operations was $(76,135,904) for the three months ended March 31, 2026, compared to $(2,654,279) for the three months ended March 31, 2025. Net loss from discontinued operations was $0 for the three months ended March 31, 2026, compared to net income from discontinued operations of $105,553 for the three months ended March 31, 2025. Total net loss was $(76,135,904) for the three months ended March 31, 2026, compared to $(2,548,725) for the three months ended March 31, 2025.
Previous wording
As of September 30, 2025, our immediate liquidity consisted of cash and cash equivalents, stablecoins, and other liquid digital assets. We actively manage working capital by converting stablecoins and other digital assets to U.S. dollars to meet operating needs. We believe our cash and stablecoins provide sufficient liquidity for at least the next 12 months.
Current wording
As of March 31, 2026, our liquidity resources consisted of $7.5 million of cash and cash equivalents, $32.5 million of short-term investments (consisting of U.S. government securities and money market funds), and $75.5 million of U.S. dollar-denominated stablecoins, for total near-cash liquidity of approximately $115.6 million. We also held an additional $99.8 million of other digital assets (primarily Worldcoin (WLD) and Ethereum (ETH)), which are subject to market price volatility. We actively manage working capital by converting stablecoins and, when appropriate, other digital assets to U.S. dollars to meet operating needs. During the three months ended March 31, 2026, we used $4.7 million of cash in operating activities, or approximately $1.6 million per month. Substantially all of our reported $76.1 million net loss for the quarter consisted of non-cash items, including a $66.5 million unrealized loss on digital assets and $5.1 million of non-cash share-based compensation. Based on our current operating cash use, we believe our near-cash liquidity is sufficient to fund our operating cash needs for substantially in excess of the next 12 months, before consideration of additional capital that may be raised under our at-the-market equity offering program or monetization of our other digital asset and strategic investment holdings.
Previous wording
Forever 8 continues to rely on its secured inventory financing facilities (the “Forever 8 Facilities”), which remain active and available.
Current wording
Forever 8 continues to rely on its secured inventory financing facilities (the “Forever 8 Facilities”), which remain active. As of March 31, 2026, we had approximately $9.1 million outstanding and unused availability of approximately $2.0 million under the Forever 8 Facilities, subject to borrowing base and other conditions.
Previous wording
As of September 30, 2025, Forever 8 had approximately $10.1 million outstanding under these facilities and additional availability to support ongoing inventory purchases.
Current wording
As of March 31, 2026, Forever 8 had approximately $9.1 million outstanding under these facilities to support ongoing inventory purchases.
Previous wording
Based on current conditions, we believe our liquidity resources are sufficient to support both our operating business and Digital Asset Treasury Strategy for at least the next twelve months.
Current wording
Based on current assumptions and our existing near-cash liquidity of approximately $115.6 million, our other digital asset and strategic equity investment holdings, our continued access to capital through our at-the-market equity offering program, and our currently anticipated operating cash use of approximately $1.6 million per month, we believe our liquidity resources are sufficient to support both our operating business and Digital Asset Treasury Strategy for at least the next twelve months.
Previous wording
Cash Flows for the Nine Months Ended September 30, 2025 and 2024
Current wording
Cash Flows for the Three Months Ended March 31, 2026 and 2025
Previous wording
Net cash used in investing activities was $304,865,683 during the nine months ended September 30, 2025 compared to $47,685 for the nine months ended September 30, 2024. The increase in net cash used in investing activities is largely attributable to the purchase of digital assets related to our Digital Asset Treasury strategy.
Current wording
Net cash used in investing activities was $(209,008,951) during the three months ended March 31, 2026, compared to $(44,647) for the three months ended March 31, 2025. The increase in net cash used in investing activities is largely attributable to purchases of investments of $(336,039,104) and purchases of digital assets of $(65,910,119) in connection with the implementation of the Company’s Digital Asset Treasury strategy, partially offset by proceeds from the sale of investments of $192,902,626 and repayments of principal under loans held-for-investment of $37,646.
Previous wording
Net cash provided by financing activities was $329,618,207 during the nine months ended September 30, 2025 compared to net cash used in financing activities of $1,707,834 for the nine months ended September 30, 2024. The change was largely attributable to the PIPE and ATM transactions that general net proceeds for $329,852,895 through the issuance of common stock..
Current wording
Net cash provided by financing activities was $162,745,897 during the three months ended March 31, 2026, compared to net cash used in financing activities of $(759,937) for the three months ended March 31, 2025. The change was largely attributable to net proceeds from the issuance of common stock of $165,360,897 generated through the Company’s ATM program, partially offset by a $1,000,000 prepayment under a contract to repurchase and cancel shares of our common stock in a future period and net repayments under the line of credit of $1,615,000. Net proceeds from the issuance of common stock reflect gross ATM proceeds of $167.6 million, reduced by $2.2 million of cash offering costs paid during the quarter and an additional $3.1 million of offering costs incurred during the quarter remained accrued and unpaid as of March 31, 2026 and are reflected as a non-cash item in the supplemental disclosure of cash flow information.
Previous wording
The Company has no debt covenants that require certain financial information to be met.
Current wording
The Company has no debt covenants that require certain financial information to be met. The following summarizes our material cash requirements as of March 31, 2026:
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
The decrease was primarily driven by:
Previous report — wording carried elsewhere
Income tax expense was $0 for both periods presented. The Company continues to maintain a full valuation allowance on its net deferred tax assets.
Previous report — wording carried elsewhere
The following table sets forth information comparing the components of net (loss) income for the nine months ended September 30, 2025 and 2024:
Previous report — wording carried elsewhere
Change in fair value of digital assets