Canton Strategic Holdings, Inc.
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
View on SEC.govAbout this filing
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.
Jun 30, 2026 · Filed Aug 14, 2026
CNTN$2.06+6.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-13.
0001493152-26-022629
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001493152-26-038044
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 67 previous paragraphs and 104 current paragraphs.
33 unchanged; 17 reworded; 50 added; 17 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 3 previous and 5 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 (50)
Current report
Recent Developments
Current report
Board Update
Current report
On July 13, 2026, we held our 2026 annual meeting of stockholders (the “Annual Meeting”). Sean Galvin, Pamela L, Carter, and Rishi Nangalia were elected as directors of the Board of Directors, effective July 13, 2026.
Current report
Gravitas Transaction
Current report
A definitive agreement (the “Purchase Agreement”) with Gravitas Collective Corp., a Delaware corporation (“Buyer”), pursuant to which the Company agreed to sell, and Buyer agreed to purchase, all of the issued and outstanding membership interests (the “Purchased Securities”) of Gravitas, which was converted from a Delaware corporation into a Delaware limited liability company on July 16, 2026 (the “Transaction”). The Transaction was completed on July 17, 2026. As consideration for the Purchased Securities, Buyer and Gravitas issued to the Company an unsecured promissory note in the original principal amount of $3,500,000 (the “Gravitas Note”) and agreed to pay to the Company certain development milestone payments in the event such payments become due and payable. The Gravitas Note bears interest at a rate of 15% per annum, payable in kind and compounding semi-annually, with accrued interest added to the outstanding principal balance.
Current report
During the three and six months ended June 30 2026, the Company recorded revenues for Canton Network validation rewards and for CC locking services.
Current report
Network validation rewards
Current report
The Company operates node infrastructure on the Canton Network in two capacities:
Current report
● Super Validator (“SV”): an institutional-grade operator that runs Byzantine fault-tolerant consensus infrastructure for the Global Synchronizer, participates in network governance, and helps maintain the shared ordering and settlement layer used by all network participants.
Current report
● Validator: an operator of a node used to participate in the network (directly or on behalf of application users), demonstrating uptime and processing transaction traffic.
Current report
The Canton Network’s native token, CC, is issued under a burn-and-mint equilibrium model rather than a fixed block-reward schedule:
Current report
● New CC is minted approximately every ten minutes (a “round”) and allocated among three participant classes — Super Validators, Validators, and application providers — based on protocol-defined formulas.
Current report
● CC supply follows a declining issuance curve designed to reward early contributors while trending toward long-term sustainability. CC issuance started high to bootstrap participation and app development, then halves periodically (with the next halving in the second quarter of 2029) to balance inflation and burn. The share of new CC issuances has shifted from favoring SVs to applications.
Current report
● Network usage fees are separately burned (removed from circulating supply), and the protocol targets a long-run equilibrium between coins minted and coins burned.
Current report
● Rewards are earned as mintable “coupons” that the validator’s software claims each round; unclaimed coupons expire and are not carried forward.
Current report
● Actual minting of SV rewards requires the node operator to meet specific deliverables as outlined in an approved Canton Improvement Proposal (“CIP”) to operate on the Canton Network. Upon initial approval, a SV’s reward weight is recorded after each round to a ghost (or “escrow”) node but actual CC minting to the SV’s wallet only occurs after their initially approved weight is unlocked (in whole or in part) via explicit approval of the Canton Foundation Accountability Committee who determines if deliverables required have been met. Upon Accountability Committee approval, the approved unlock portion begins minting to the SV wallet on a per-round basis. The approved weight portion of any accumulated rewards captured in the escrow node are subject to further review and calculation verification and a second committee approval vote, at which time a “one time mint” event occurs and a lump sum of CC is then minted to the SV wallet accordingly.
Current report
The Company was approved for SV weight of four (4) under CIP 102 in January 2026, and was approved for additional SV weight of eleven (11) under CIP 114 in April 2026. Active minting of 0.5 weight SV rewards began in May 2026 when the Company met the first of eight (8) deliverables under CIP 102. The amount reported in Network validation and reward revenue for the three and six months ended June 30, 2026 includes CC rewards from active daily minting of SV rewards at 0.5 weight, along with a one-time CC mint associated with the accumulated 0.5 weight from CIP 102 approval date through the unlock date in May 2026. As of June 30, 2026, in addition to the 0.5 active SV CC rewards minting, a weight of 14.5 is being recorded under both CIP 102 and CIP 114. Such weight is not currently eligible for active reward minting and will become eligible for release only upon satisfaction of the applicable milestone requirements and completion of the applicable Canton Network review and approval processes. Based on the currently applicable milestone schedules, and assuming the Company satisfies all applicable requirements, the Company expects the remaining weight to become eligible for release through the first quarter of 2028:
Current report
CC Locking Services
Current report
CIP 105 requires SVs on the Canton Network to lock a specified amount of CC in order to maintain their minting weight (i.e., their proportional entitlement to network validator rewards). CIP 116 imposes an analogous locking requirement on Featured Applications (“Featured Apps”) in order for those applications to maintain their featured status and associated reward entitlements. Neither CIP requires that the locked CC be owned by the SV or Featured App itself — only that a qualifying amount of CC be identifiably locked and associated with that party’s wallet ID for the Canton Foundation’s compliance-tracking purposes.
Current report
This structure has given rise to a market for locking-as-a-service (“LAAS”): parties that hold CC (such as the Company) contract with SVs and Featured Apps to lock Company-owned CC on their behalf, in exchange for a fee, so that those counterparties can satisfy their CIP 105 / CIP 116 obligations without having to source and hold the requisite CC themselves.
Current report
For each LAAS customer, the Company places the agreed amount of CC into a separately identified wallet, held for the full term of the agreement within the Company’s qualified custodian. The Company retains legal and beneficial ownership of the CC at all times — the arrangement is not a transfer of the CC to the counterparty and does not constitute a loan of the underlying asset in a legal sense. Only the wallet ID (not custody, title, or control) is shared with the Canton Foundation, solely to allow the Foundation to verify the counterparty’s compliance with the applicable CIP locking provisions.
Current report
Because the CC is never transferred to the customer, the Company’s CC treasury holdings continue to be accounted for under the Company’s existing crypto asset accounting policy throughout the term of each LAAS arrangement, irrespective of the compensation structure of that arrangement. What the Company transfers to the customer is, in substance, the benefit of the CC being visibly and verifiably locked in the Company’s wallet — i.e., a stand-ready locking service — not the CC itself.
Current report
LAAS enables the Company to generate yield on its CC treasury asset and the majority of LAAS customers pay for the service in CC, which compounds the Company’s own treasury position. Through LAAS arrangements, the Company supports Canton Network ecosystem initiatives that are expected to drive application activity and network utilization, expand our counterparty relationships and our ability to influence the conditions which we believe support long-term CC value.
Current report
Derivatives – Option Contracts
Current report
During the quarter ended June 30, 2026, the Company began entering into CC-denominated option contracts through the sale of cash secured put options, as a part of its digital asset strategy. The Company records premiums earned and fair value remeasurement in Other revenue.
Current report
Results of Continuing Operations
Current report
Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025
Current report
Revenues increased by $1.5 million for the three months ended June 30, 2026. Network validation revenue was $0.2 million, primarily SV rewards commencing in May with respect to our CIP 102 0.5 weight unlock. Other revenue was $1.3 million, primarily earned under LAAS agreements commencing in April. We did not generate any revenue for the same period in 2025 as we did not operate an SV or have LAAS activities.
Current report
General
Current report
Research and development expenses decreased by $0.1 million, or 100%, to $0 for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. The Company has not incurred any research and development expenses related to the Oncology Program during the current period.
Current report
General and administrative expenses increased by $1.4 million, or 107%, to $2.7 million for the three months ended June 30, 2026 from $1.3 million for the three months ended June 30, 2025. The change in general and administrative expenses was primarily due to increases of (i) $1.1 million in compensation and benefits expenses, (ii) $0.3 million in insurance expense, (iii) $0.2 million in information technology and digital asset custody expenses, partially offset by a $0.2 million decrease in stock based compensation expense.
Current report
Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
Current report
Revenues increased by $1.5 million for the six months ended June 30, 2026. Network validation revenue was $0.2 million, primarily SV rewards commencing in May with respect to our CIP 102 0.5 weight unlock. Other revenue was $1.3 million, primarily earned under LAAS agreements commencing in April. We did not generate any revenue for the same period in 2025 as we did not operate an SV or have LAAS activities.
Current report
Research and development expenses decreased by $0.2 million, or 100%, to $0 for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The Company has not incurred any research and development expenses related to the Oncology Program during the current period.
Current report
Interest Expense
Current report
Known Trends, Events and Uncertainties
Current report
Business operations. Following our November 2025 and January 2026 financings, we have focused on expanding our digital asset treasury strategy and Canton Network operations. We continue to grow our CC holdings through operation as a SV on the Canton Network. We have also launched our LAAS to other Canton Network participants recently. Our ability to execute this strategy depends on continued capital availability and favorable market conditions for CC.
Current report
*Canton Coin price volatility.*Our financial results and the carrying value of our digital asset holdings are significantly affected by the market price of CC, which has historically been volatile. Fluctuations in the price of CC could materially affect our financial position, results of operations and cash flows, and our ability to raise additional capital on acceptable terms.
Current report
*Capital markets and liquidity.*We believe November 2025 and January 2026 financings, shelf registration and ATM Program provide flexibility to access equity capital opportunistically to support working capital and selective investments aligned with our strategy. Adverse market conditions or unfavorable industry sentiment could constrain our ability to raise capital on acceptable terms.
Current report
Regulatory environment. Evolving U.S. and foreign regulations related to digital assets, blockchain networks, staking and validation services, and custody of crypto assets may impose new compliance obligations or restrictions on our business.
Showing the first 40 of 50 passages. Open the source sections for the rest.
Removed paragraphs (17)
Previous report
Revenue
Previous report
We have not recognized revenue since inception or for the three months ended March 31, 2026 and 2025.
Previous report
Research and Development Expenses
Previous report
We accrue costs incurred by external service providers, including contract research organizations and clinical investigators, based on estimates of service performed and costs incurred. These estimates include the level of services performed by third parties, patient enrollment in clinical trials, administrative costs incurred by third parties, and other indicators of the services completed. Based on the timing of amounts invoiced by service providers, we may also record payments made to those providers as prepaid expenses that will be recognized as expense in future periods as the related services are rendered.
Previous report
We cannot determine with certainty the duration and costs of future clinical trials of our product candidates or any other product candidates we may develop or if, when or to what extent we will generate revenue from the commercialization and sale of any of our product candidates for which we obtain marketing approval. We may never succeed in obtaining marketing approval for any of our product candidates. The duration, costs and timing of clinical trials and development of our current and future product candidates will depend on a variety of factors, including:
Previous report
A change in the outcome of any of these variables with respect to the development of a product candidate could mean a significant change in the costs and timing associated with the development of that product candidate. For example, if the FDA or another regulatory authority were to require us to conduct clinical trials beyond those that we anticipate will be required for the completion of clinical development of a product candidate, or if we experience significant delays in our clinical trials due to slower than expected patient enrollment or other reasons, we would be required to expend significant additional financial resources and time on the completion of clinical development.
Previous report
General and Administrative Expenses
Previous report
Interest Income
Previous report
Results of Operations
Previous report
Comparison of the Three Months Ended March 31, 2026 and 2025
Previous report
The following table sets forth key components of our results of operations for the three months ended March 31, 2026 and 2025.
Previous report
Research and Development Expenses
Previous report
Research and development expenses decreased by $0.3 million, or 55%, to $0.3 million for the three months ended March 31, 2026 from $0.6 million for three months ended March 31, 2025. The decrease was driven by less research and development activity in our programs.
Previous report
General and Administrative Expenses
Previous report
Interest Income
Previous report
Research and development
Previous report
Research and development costs are expensed as incurred. Research and development expenses include personnel costs associated with research and development activities, including third-party contractors to perform research, conduct clinical trials and manufacture drug supplies and materials. We accrue for costs incurred by external service providers, including contract research organizations and clinical investigators, based on our estimates of service performed and costs incurred. These estimates include the level of services performed by third parties, patient enrollment in clinical trials, administrative costs incurred by third parties, and other indicators of the services completed.
Reworded paragraphs (17)
Previous wording
Research and development expenses include personnel costs associated with research and development activities, including third-party contractors to perform research, conduct clinical trials, and manufacture drug supplies and materials as well as stock-based compensation for our research and development personnel. Research and development expenses are charged to operations as incurred.
Current wording
Research and development expenses include personnel costs associated with research and development activities, including third-party contractors to perform research, conduct clinical trials, and manufacture drug supplies and materials as well as stock-based compensation for our research and development personnel. Research and development expenses are charged to operations as incurred. With the exception of costs related to the Oncology Program (see Note 11 to the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q), all research and development expenses have been classified as discontinued operations.
Previous wording
Interest income consists of interest income from funds held in our cash accounts.
Current wording
Interest income consists of interest income from funds held in our cash and cash equivalents accounts.
Previous wording
The unrealized gain (loss) from digital assets holdings represents the change in fair value of our digital assets. We use a USD/CC reference price from a crypto market data provider for purposes of periodic fair value remeasurement.
Current wording
The unrealized gain (loss) from digital assets holdings represents the change in fair value of our digital assets (CC) and any CC denominated receivables. We use a USD/CC reference price from a crypto market data provider for purposes of periodic fair value remeasurement.
Previous wording
Interest expense decreased by $8,471, or 100%, to $0 for the three months ended March 31, 2025 from $8,471 for the three months ended March 31, 2025. The interest expense incurred in 2025 was primarily related to a director and officer insurance premium financing liability as well as a note payable. We have paid such obligations in full as of December 31, 2025 and did not incur any interest expense for the three months ended March 31, 2026.
Current wording
Interest expense decreased by $0.06 million, or 100%, to $0 for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. The interest expense incurred in 2025 was primarily related to a director and officer insurance premium financing liability as well as a note payable. We have paid such obligations in full as of December 31, 2025 and did not incur any interest expense for the three months ended June 30, 2026.
Previous wording
Interest income increased by approximately $0.3 million, or 2268%, to $0.3 million for the three months ended March 31, 2026 from $0.01 million for the three months ended March 31, 2025. The increase in interest income was due to the increase in investible cash and equivalents.
Current wording
Interest income increased by approximately $0.3 million, to $0.3 million for the three months ended June 30, 2026 from $0.02 million for the three months ended June 30, 2025. The increase in interest income was due to the increase in investible cash and equivalents.
Previous wording
We recorded an unrealized loss from digital assets holdings of $15.0 million for the three months ended March 31, 2026. We did not have any loss (or gain) from digital asset holdings for the three months ended March 31, 2025. We did not own digital assets prior to the Cryptocurrency Offering in November 2025. The current period unrealized loss is a result of the reference price of CC as of March 31, 2026 being less than the weighted average cost of our CC holdings. See Note 3 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information about our digital assets holdings
Current wording
We recorded an unrealized loss from digital assets holdings of $23.7 million for the three months ended June 30, 2026. We did not have any loss (or gain) from digital asset holdings for the three months ended June 30, 2025. We did not own digital assets prior to the Cryptocurrency Offering in November 2025. The current period unrealized loss is a result of the reference price of CC as of June 30, 2026 being less than the weighted average cost of our CC holdings. See Note 3 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information about our digital assets holdings
Previous wording
General and administrative expenses increased by $34.6 million, or 1174%, to $36.6 million for the three months ended March 31, 2026 from $2.0 million for the three months ended March 31, 2025. The digital asset treasury strategy drove the increased general and administrative expense. The change in general and administrative expenses was primarily due to increases of (i) $32.1 million in stock based compensation (see Note 5 to the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q), (ii) $0.8 million in compensation expenses including accrued bonuses, (iii) $0.8 million in legal and other professional services (iv) $0.2 million in insurance expenses.
Current wording
General and administrative expenses increased by $34.6 million, or 1064%, to $37.9 million for the six months ended June 30, 2026 from $3.3 million for the six months ended June 30, 2025. The change in general and administrative expenses was primarily due to increases of (i) $31.9 million in stock based compensation expense (see Note 5 to the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q), (ii) $1.6 million in compensation and benefits expenses, (iii) $0.6 million in insurance expense, (iv) $0.4 million in information technology and digital asset custody expenses, and (v) $0.2 million in legal and professional expenses.
Previous wording
Our results of operations for the three months ended March 31, 2026 reflect our two reportable segments: legacy biotechnology operations, and our digital asset treasury strategy initiated in November 2025. See Note 9 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional segment financial performance information.
Current wording
cost of our CC holdings. See Note 3 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information about our digital assets holdings.
Previous wording
On November 3, 2025, we raised net proceeds of over $537 million through a private placement offering, and on January 21, 2026 we raised approximately $53 million in a registered direct offering and have raised approximately $35 million year to date pursuant to the 2025 ATM Agreement and March 2026 ATM Agreement. We believe we have sufficient liquidity to fund anticipated cash requirements for operations and working capital purposes through at least March 2027.
Current wording
On November 3, 2025, we raised net proceeds of over $537 million through a private placement offering, and on January 21, 2026 we raised approximately $53 million in a registered direct offering and have raised approximately $39 million year to date pursuant to the 2025 ATM Agreement and March 2026 ATM Agreement. We believe we have sufficient liquidity to fund anticipated cash requirements for operations and working capital purposes through at least June 2027.
Previous wording
Cash Flow Activities for the Three Months Ended March 31, 2026 and 2025
Current wording
Cash Flow Activities for the Six Months Ended June 30, 2026 and 2025
Previous wording
Cash used in operating activities for the three months ended March 31, 2026 was $7.6 million which consisted of net loss of $47.3 million, adjusted for non-cash stock-based compensation of approximately $32.3 million, unrealized loss from digital asset holdings of approximately $15.0 million, a decrease of $4.2 million for deferred tax benefit, and a net decrease in operating assets and liabilities of approximately $3.3 million.
Current wording
Cash used in operating activities – continuing operations for the six months ended June 30, 2026 was $5.4 million which consisted of net loss from continuing operations of $63.7 million, adjusted for non-cash stock based compensation of approximately $32.3 million, unrealized loss from digital asset holdings of approximately $38.7 million, a decrease of $10.9 million for deferred tax benefit, non-cash revenue adjustment of $1.5 million for network validation and related services, and a net increase in operating assets and liabilities of approximately $1.4 million. Cash used in operating activities – discontinued operations was $4.5 million for the six months ended June 30, 2026.
Previous wording
Cash used in operating activities for the three months ended March 31, 2025 was $2.7 million which consisted of net loss of $2.5 million, and a net decrease in operating assets and liabilities of approximately $0.4 million partially offset by non-cash stock-based compensation of approximately $0.2 million.
Current wording
Cash used in operating activities – continuing operations for the six months ended June 30, 2025 was $3.1 million which consisted of net loss from continuing operations of $3.5 million, adjusted for non-cash stock based compensation of $0.4 million. Cash used in operating activities – discontinued operations was $0.7 million for the six months ended June 30, 2025.
Previous wording
Cash used in investing activities for the three months ended March 31, 2026 was $54.8 million, representing the purchase of digital assets. There were no cash flows from investing activities during the three months ended March 31, 2025.
Current wording
Cash used in investing activities for the six months ended June 30, 2026 was $59.6 million, representing the purchase of digital assets. There were no cash flows from investing activities during the six months ended June 30, 2025.
Previous wording
Cash provided by financing activities for the three months ended March 31, 2026 was $87.0 million. The net increase in financing activities was due to proceeds from the January 2026 Offering of $54.9 million, proceeds from the 2025 ATM Agreement and March 2026 ATM Agreement offerings of $35.5 million, proceeds from the exercise of warrants of less than $0.1 million. These increases were offset by payments of issuance costs of $3.6 million.
Current wording
Cash provided by financing activities for the six months ended June 30, 2026 was $91.2 million. The net increase in financing activities was due to proceeds from the January 2026 Offering of $54.9 million, proceeds from the 2025 ATM Agreement and March 2026 ATM Agreement offerings of $39.8 million, proceeds from the exercise of warrants of $0.2 million. These increases were offset by payments of issuance costs of $3.6 million.
Previous wording
Cash provided by financing activities for the three months ended March 31, 2025 was $0.2 million. The net increase in financing activities was due to proceeds from the insurance premium financing liability of $0.3 offset by payments of the insurance premium financing liability of $0.1 million and repayments of the note payable of less than $0.1 million.
Current wording
Cash provided by financing activities for the six months ended June 30, 2025 was $2.5 million. The net increase in financing activities was due to proceeds from a private investment in public equity offering of $2.5 million, proceeds from at-the-market offerings of $0.3 million, proceeds from insurance premium financing liability of $0.3 million, offset by payments of issuance costs of $0.3 million, payments of the insurance premium financing liability of $0.2 million and repayments of the note payable of less than $0.1 million.
Previous wording
We account for digital assets, which are comprised of CC, as indefinite-lived intangible assets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350-60,Intangibles—Goodwill and Other-Crypto Assets. Our digital assets are initially recorded at cost. Subsequently, they are measured at fair value with the gain or loss associated with remeasurement of the digital assets recognized in net income (loss) during each reporting period. Upon disposal of a digital asset (e.g., by sale, exchange or transfer), we derecognize the asset and recognize a realized gain or loss in net income, calculated as the difference between the sale proceeds and the asset’s carrying amount.
Current wording
We account for digital assets, which are comprised of CC, as indefinite-lived intangible assets in accordance with ASC 350-60,Intangibles—Goodwill and Other-Crypto Assets. Our digital assets are initially recorded at cost. Subsequently, they are measured at fair value with the gain or loss associated with remeasurement of the digital assets recognized in net income (loss) during each reporting period. Upon disposal of a digital asset (e.g., by sale, exchange or transfer), we derecognize the asset and recognize a realized gain or loss in net income, calculated as the difference between the sale proceeds and the asset’s carrying amount.
Previous wording
The fair value of the digital assets is determined based on the quoted price in its principal market at the time of measurement. We determine its principal market as the market that it has access to and has the greatest volume and level or orderly transactions in accordance with FASB ASC 820,Fair Value Measurement. We track the cost of its digital assets using the first-in-first-out (FIFO) method.
Current wording
The fair value of the digital assets is determined based on the quoted price in its principal market at the time of measurement. We determine its principal market as the market that it has access to and has the greatest volume and level or orderly transactions in accordance with ASC 820,Fair Value Measurement. We track the cost of its digital assets using the first-in-first-out (FIFO) method.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Interest expense decreased by $0.015 million, or 100%, to $0 for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The interest expense incurred in 2025 was primarily related to a director and officer insurance premium financing liability as well as a note payable. We have paid such obligations in full as of December 31, 2025 and did not incur any interest expense for the six months ended June 30, 2026.
Current report — wording carried from elsewhere
Interest income increased by approximately $0.6 million, to $0.6 million for the six months ended June 30, 2026 from $0.016 million for the six months ended June 30, 2025. The increase in interest income was due to the increase in investible cash and equivalents.
Current report — wording carried from elsewhere
Unrealized Loss from Digital Assets Holdings
Current report — wording carried from elsewhere
We recorded an unrealized loss from digital assets holdings of $38.7 million for the six months ended June 30, 2026. We did not have any loss (or gain) from digital asset holdings for the six months ended June 30, 2025. We did not own digital assets prior to the Cryptocurrency Offering in November 2025. The unrealized loss for the six months ended June 30, 2026 is a result of the reference price of CC as of June 30, 2026 being less than the weighted average