BITGO HOLDINGS, INC.

Previous wording

Our platform combines self-custody wallet, qualified custody, liquidity and prime, and infrastructure-as-a-service solutions, including stablecoin issuance and management. This unified suite of solutions is designed to meet the operational and regulatory demands of our clients. We supported over 1,800 digital assets as of March 31, 2026, and helped pioneer institutional-grade multi-signature (“multi-sig”) security architecture and cold storage solutions. With a client base that includes digital asset ecosystem companies, financial institutions, technology platforms, corporations and government agencies, as well as high net worth individuals (“HNWIs”), our Number of Clients, who were located across over 100 countries, exceeded 5,500 as of March 31, 2026, and we had approximately $63.0 billion in Assets on Platform (“AoP”) for the three months ended March 31, 2026. Our principal markets are the United States and other major financial centers in North America, Europe, and Asia. See “—Key Business Metrics” for a definition of “Number of Clients” and “Assets on Platform.”

Current wording

Our platform combines self-custody wallet, qualified custody, liquidity and prime, and infrastructure-as-a-service solutions, including stablecoin issuance and management. This unified suite of solutions is designed to meet the operational and regulatory demands of our clients. We supported over 2,200 digital assets as of June 30, 2026, and helped pioneer institutional-grade multi-signature (“multi-sig”) security architecture and cold storage solutions. With a client base that includes digital asset ecosystem companies, financial institutions, technology platforms, corporations and government agencies, as well as high net worth individuals (“HNWIs”), our Number of Clients, who were located across over 100 countries, exceeded 5,800 as of June 30, 2026, and we had approximately $65.2 billion in Assets on Platform (“AoP”) for the three months ended June 30, 2026. Our principal markets are the United States and other major financial centers in North America, Europe, and Asia. See “—Key Business Metrics” for a definition of “Number of Clients” and “Assets on Platform.”

Previous wording

We began as a specialized custodian, integrating directly with advanced blockchain technologies, eliminating the need for institutional and retail clients to compromise security for market access. We have continued to innovate in the space having been the first to commercially introduce self-custody wallets. Over time, we have added the BitGo Trust Companies, allowing us to become one of the first custodians purpose-built for digital assets. In 2020, we expanded our platform’s capabilities through the introduction of BitGo Prime which introduced liquidity solutions on top of our custody and wallet layers. Our platform continues to grow. For the three months ended March 31, 2026 we had approximately $63.0 billion in AoP, including $11.8 billion in Assets Staked for the three months ended March 31, 2026. See “—Key Business Metrics” for definitions of “Assets on Platform” and “Assets Staked.”

Current wording

We began as a specialized custodian, integrating directly with advanced blockchain technologies, eliminating the need for institutional and retail clients to compromise security for market access. We have continued to innovate in the space having been the first to commercially introduce self-custody wallets. Over time, we have added the BitGo Trust Companies, allowing us to become one of the first custodians purpose-built for digital assets. In 2020, we expanded our platform’s capabilities through the introduction of BitGo Prime which introduced liquidity solutions on top of our custody and wallet layers. Our platform continues to grow. For the three months ended June 30, 2026 we had approximately $65.2 billion in AoP, including $11.9 billion in Assets Staked for the three months ended June 30, 2026. See “—Key Business Metrics” for definitions of “Assets on Platform” and “Assets Staked.”

Previous wording

•Number of Clients increased from 3,900 as of March 31, 2025 to 5,500 as of March 31, 2026.

Current wording

•Number of Clients increased from 4,621 as of June 30, 2025 to 5,833 as of June 30, 2026.

Previous wording

•The fair value of Assets Staked decreased from $28.4 billion for the three months ended March 31, 2025 to $11.8 billion for the three months ended March 31, 2026.

Current wording

•The fair value of Assets Staked decreased from $25.6 billion for the three months ended June 30, 2025 to $11.9 billion for the three months ended June 30, 2026.

Previous wording

•Total revenue increased from $1,775 million for the three months ended March 31, 2025 to $3,774 million for the three months ended March 31, 2026.

Current wording

•Total revenue increased from $2,410.5 million for the three months ended June 30, 2025 to $4,329.4 million for the three months ended June 30, 2026.

Previous wording

•Adjusted EBITDA decreased from $3.9 million for the three months ended March 31, 2025 to an Adjusted EBITDA loss of $1.7 million for the three months ended March 31, 2026.

Current wording

•Adjusted EBITDA decreased from 3.0 million for the three months ended June 30, 2025 to an Adjusted EBITDA loss of $(4.2) million for the three months ended June 30, 2026.

Previous wording

We define Assets on Platform (“AoP”) as the median of the daily balances of total assets on our platform over the measured period, where daily balances represent the fair value of both fiat currency and digital assets, whether custodied or non-custodied, held by clients in their accounts on our platform at the end of each day, calculated based on the market price of the applicable assets at the end of such day. We believe that presenting a median of the daily balances of total assets on our platform over a measured period is a more accurate representation than presenting the sum of balances of total assets on our platform at the end of such measured period due, in part, to the volatility of the prices of digital assets, which may change significantly in any given day. AoP demonstrates the scale of balances held across our suite of products and services, as well as the underlying performance of the digital asset economy and corresponding trends in prices of digital assets.

Current wording

We define AoP as the median of the daily balances of total assets on our platform over the measured period, where daily balances represent the fair value of both fiat currency and digital assets, whether custodied or non-custodied, held by clients in their accounts on our platform at the end of each day, calculated based on the market price of the applicable assets at the end of such day. We believe that presenting a median of the daily balances of total assets on our platform over a measured period is a more accurate representation than presenting the sum of balances of total assets on our platform at the end of such measured period due, in part, to the volatility of the prices of digital assets, which may change significantly in any given day. AoP demonstrates the scale of balances held across our suite of products and services, as well as the underlying performance of the digital asset economy and corresponding trends in prices of digital assets.

Previous wording

Our AoP has fluctuated over time due, in part, to fluctuations in the digital asset economy and corresponding fluctuations in the prices of digital assets. For the three months ended March 31, 2026, our AoP was $63.0 billion, representing a decrease of 30.4% from the three months ended March 31, 2025, primarily driven by declines in digital asset prices.

Current wording

Our AoP has fluctuated over time due, in part, to fluctuations in the digital asset economy and corresponding fluctuations in the prices of digital assets. For the three months ended June 30, 2026, our AoP was $65.2 billion, representing a decrease of 27.8% from the three months ended June 30, 2025, primarily driven by declines in digital asset prices.

Previous wording

AoP is influenced by multiple factors, including certain market-dependent factors, and thus can fluctuate based not only on the quantity of assets held on our platform, but also the price of such assets. For example, over the period from the three months ended March 31, 2025 to the three months ended March 31, 2026, the digital assets market capitalization fell 23% from a high of $3.9 trillion to $3.0 trillion. In comparison, AoP for the three months ended March 31, 2025 and 2026 were $90.5 billion and $63.0 billion, respectively, representing a 30.4% decrease.

Current wording

AoP is influenced by multiple factors, including certain market-dependent factors, and thus can fluctuate based not only on the quantity of assets held on our platform, but also the price of such assets. For example, over the period from the three months ended June 30, 2025 to three months ended June 30, 2026, the digital assets market capitalization fell 38% from a high of $3.4 trillion to $2.1 trillion. In comparison, AoP for the three months ended June 30, 2025 and 2026 were $90.3 billion and $65.2 billion, respectively, representing a 27.8% decrease.

Previous wording

The value of a majority of our AoP has been, and continues to be, concentrated in a few digital assets held by our clients, including Bitcoin, Ethereum, Sui, XRP, and Solana, which constituted 50.1%, 10.1%, 7.5%, 5.1%, and 3.8%, of our AoP as of March 31, 2026, respectively. In addition to digital assets, our AoP includes a negligible amount of fiat currencies. In line with the historical market cap dominance of Bitcoin, Bitcoin has consistently been the largest single digital asset in our AoP. Our mix of digital assets does, however, fluctuate depending on the price performance of individual digital assets as well as the onboarding and offboarding of client accounts.

Current wording

The value of a majority of our AoP has been, and continues to be, concentrated in a few digital assets held by our clients, including Bitcoin, Ethereum, Sui, XRP, and Solana, which constituted 51.5%, 9.4%, 6.3%, 4.7%, and 3.9%, of our AoP as of June 30, 2026, respectively. In addition to digital assets, our AoP includes a negligible amount of fiat currencies. In line with the historical market cap dominance of Bitcoin, Bitcoin has consistently been the largest single digital asset in our AoP. Our mix of digital assets does, however, fluctuate depending on the price performance of individual digital assets as well as the onboarding and offboarding of client accounts.

Previous wording

While our Number of Clients was less than 100 prior to January 1, 2017, as of March 31, 2026, our Number of Clients exceeded 5,500. Our Number of Clients has grown at a CAGR of 90.0% over the past two years, through March 31, 2026, which has been predominantly driven by organic growth and the resulting increased utilization of our services rather than through acquisitions.

Current wording

While our Number of Clients was less than 100 prior to January 1, 2017, as of June 30, 2026, our Number of Clients exceeded 5,800. Our Number of Clients has grown at a compound annual growth rate (“CAGR”) of 84.0% over the past two years, through June 30, 2026, which has been predominantly driven by organic growth and the resulting increased utilization of our services rather than through acquisitions.

Previous wording

We view Number of Users as a key indicator of our scale as it portrays not only the number of institutional clients and HNWIs who have demonstrated an interest in our platform or direct intent to transact with digital assets (which we track through the Number of Clients metric), but also the number of retail users who have conducted at least one meaningful usage of, and meaningful activity with, our platform. Although we generally do not generate incremental revenue solely from an institutional client adding any one additional authorized user, we have observed that the number of users authorized by our institutional clients positively correlates with overall client activity, engagement with our solutions and revenue generated from such client. For example, with respect to institutional clients, there are typically many individuals who are authorized to interact with our platform through a single institutional client account. As of March 31, 2026, the average number of authorized individuals using our platform through a single institutional client was 5.01. By assessing the Number of Users, together with the Number of Clients, we can assess our total platform usage as well as the rate of the general market adoption of digital assets. In addition, because we generate revenue from certain activities by retail users (e.g., when retail users engage in transactional activities on our platform), the “Number of Users” metric provides meaningful insight into the revenue-generating retail activity on our platform.

Current wording

We view Number of Users as a key indicator of our scale as it portrays not only the number of institutional clients and HNWIs who have demonstrated an interest in our platform or direct intent to transact with digital assets (which we track through the Number of Clients metric), but also the number of retail users who have conducted at least one meaningful usage of, and meaningful activity with, our platform. Although we generally do not generate incremental revenue solely from an institutional client adding any one additional authorized user, we have observed that the number of users authorized by our institutional clients positively correlates with overall client activity, engagement with our solutions and revenue generated from such client. For example, with respect to institutional clients, there are typically many individuals who are authorized to interact with our platform through a single institutional client account. As of June 30, 2026, the average number of authorized individuals using our platform through a single institutional client was 5.2. By assessing the Number of Users, together with the Number of Clients, we can assess our total platform usage as well as the rate of the general market adoption of digital assets. In addition, because we generate revenue from certain activities by retail users (e.g., when retail users engage in transactional activities on our platform), the “Number of Users” metric provides meaningful insight into the revenue-generating retail activity on our platform.

Previous wording

Similar to AoP, Assets Staked is influenced by multiple factors, including certain market-dependent factors, and thus can fluctuate based not only on the quantity of assets staked on our platform, but also the price of such assets. In addition, similar to AoP, the value of a majority of our Assets Staked has been, and continues to be, concentrated in a few digital assets held by our clients, including namely Sui, Ethereum and Solana, which constituted approximately 37.6%, 35.0%, and 16.5%, of our Assets Staked as of March 31, 2026, respectively.

Current wording

Similar to AoP, Assets Staked is influenced by multiple factors, including certain market-dependent factors, and thus can fluctuate based not only on the quantity of assets staked on our platform, but also the price of such assets. In addition, similar to AoP, the value of a majority of our Assets Staked has been, and continues to be, concentrated in a few digital assets held by our clients, namely Sui, Ethereum and Solana, which constituted approximately 33.3%, 33.5%, and 17.0%, of our Assets Staked as of June 30, 2026, respectively.

Previous wording

We define Adjusted EBITDA as net income (loss), excluding (i) provision for income taxes, (ii) depreciation and amortization, (iii) stock-based payment expense, (iv) employer payroll taxes on employee stock transactions, (v) net changes in unrealized appreciation (loss) on digital assets, and (vi) certain non-recurring charges (which are specified in detail below).

Current wording

We define Adjusted EBITDA as net income (loss), excluding (i) provision for income taxes, (ii) depreciation and amortization, (iii) stock-based compensation expense, (iv) employer payroll taxes on employee stock transactions, (v) net changes in unrealized appreciation (loss) on digital assets, (vi) certain non-recurring charges (which are specified in detail below), and (vii) restructuring charges.

Previous wording

(2)Legal contingencies, settlements, and related costs includes (i) litigation costs of $1.3 million and $0.9 million in the three months ended March 31, 2025 and March 31, 2026, respectively, associated with our ongoing suit against Galaxy alleging that Galaxy breached and wrongfully repudiated the terms of the Merger Agreement, by terminating Galaxy’s proposed $1.2 billion acquisition of the Company, (ii) legal settlement of $0.1 million in three months ended March 31, 2026, (iii) one-time bonus payment of $0.5 million made in three months ended March 31, 2026, in connection with the IPO, (iv) IPO-related expense borne by us of $0.3 million in the three months ended March 31, 2026, (v) legal and professional fees borne by us of $1.2 million in the three months ended March 31, 2026 related to the evaluation of strategic opportunities. See the section titled “Business—Legal Proceedings” in our Annual Report on Form 10-K for the year ended December 31, 2025 and Note 14—Commitments and Contingencies in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information relating to our ongoing litigation with Galaxy.

Current wording

(2)Legal, IPO-related and other costs include (i) litigation costs of $3.2 million and $4.5 million in the three and six months ended June 30, 2025, respectively, and nil and $0.9 million in the three and six months ended June 30, 2026, respectively, associated with our ongoing suit against Galaxy alleging that Galaxy breached and wrongfully repudiated the terms of the Merger Agreement, by terminating Galaxy’s proposed $1.2 billion acquisition of the Company, (ii) legal settlement of nil and $0.1 million in three and six months ended June 30, 2026, respectively (iii) one-time bonus payment of nil and $0.5 million made in the three and six months ended June 30, 2026, in connection with the IPO, (iv) IPO-related expense borne by us of $0.4 million in the three and six months ended June 30, 2025, and nil and $0.3 million in the three and six months ended June 30, 2026, respectively, (v) legal and professional fees borne by us of $0.6 million and $1.8 million in the three and six months ended June 30, 2026, respectively, related to entity wind-down costs and the evaluation of strategic opportunities. See the section titled “Business—Legal Proceedings” in our Annual Report on Form 10-K for the year ended December 31, 2025 and Note 14—Commitments and Contingencies in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information relating to our ongoing litigation with Galaxy.

Previous wording

These factors largely impact price and volatility of digital assets, which underlie the foundation of our business model. Significant price increases or declines in digital assets can substantially influence the value of the assets on our platform, directly impacting our revenue due to our percentage-based fee model. Similarly, high volatility in the digital assets market continues to impact our operations, generating user and investor uncertainty that may potentially lower transaction volumes on our platform and revenue outcomes. In addition, while we support a wide range of digital assets, the digital assets, whether custodied or non-custodied, held by our clients in their accounts on our platform has historically been, and continues to be, concentrated in a small number of distinct digital assets (including Bitcoin, Ethereum, Sui, Solana and XRP). Therefore, declines in demand for such digital assets or in the prices of such digital assets could negatively impact our operating performance and financial condition.

Current wording

These factors largely impact price and volatility of digital assets, which underlie the foundation of our business model. Significant price increases or declines in digital assets can substantially influence the value of the assets on our platform, directly impacting our revenue due to our percentage-based fee model. Similarly, high volatility in the digital assets market continues to impact our operations, generating user and investor uncertainty that may potentially lower transaction volumes on our platform and revenue outcomes. In addition, while we support a wide range of digital assets, the digital assets, whether custodied or non-custodied, held by our clients in their accounts on our platform have historically been, and continue to be, concentrated in a small number of distinct digital assets (including Bitcoin, Ethereum, Sui, Solana and XRP). Therefore, declines in demand for such digital assets or in the prices of such digital assets could negatively impact our operating performance and financial condition.

Previous wording

Our business has expanded rapidly over time, and our conviction in the strength of the digital assets market is unwavering. The digital assets market has grown approximately 500% in size over the last five years to reach a total market capitalization of approximately $3.0 trillion as of March 31, 2026, with use cases continuing to expand. We believe that our unified suite of solutions: self-custody wallet, qualified custody, liquidity and prime, and infrastructure-as-a-service, will enable us to offer a variety of products and services to a growing total addressable market. In addition, we support over 1,800 digital assets as of March 31, 2026 and have helped pioneer institutional-grade multi-sig security architecture and cold storage solutions, which we believe provide a strong foundation for success.

Current wording

Our business has expanded rapidly over time, and our conviction in the strength of the digital assets market is unwavering. The digital assets market has grown over 41% in size over the last five years to reach a total market capitalization of approximately $2.1 trillion as of June 30, 2026, with use cases continuing to expand. We believe that our unified suite of solutions: self-custody wallet, qualified custody, liquidity and prime, and infrastructure-as-a-service, will enable us to offer a variety of products and services to a growing total addressable market. In addition, we support over 2,200 digital assets as of June 30, 2026 and have helped pioneer institutional-grade multi-sig security architecture and cold storage solutions, which we believe provide a strong foundation for success.

Previous wording

Subscriptions and services revenue also encompass our Crypto-as-a-Service offering, which allows clients to issue and manage the issuance of their own digital assets. Subscriptions and services revenue also consists of interest income from loan receivables and fee income from digital intangible assets loan receivables. Interest income generated from our loan receivables is accrued when interest payments become contractually due. Fee income from digital intangible asset loans includes revenue generated from lending digital intangible assets. In some instances, we may charge a fee for loan origination.

Current wording

Subscriptions and services revenue also encompasses our Crypto-as-a-Service offering, which allows clients to issue and manage the issuance of their own digital assets. Subscriptions and services revenue also consists of interest income from loan receivables and fee income from digital intangible assets loan receivables. Interest income generated from our loan receivables is accrued when interest payments become contractually due. Fee income from digital intangible asset loans includes revenue generated from lending digital intangible assets. In some instances, we may charge a fee for loan origination.

Previous wording

Digital assets sales costs represents the cost basis of the digital intangible assets transferred corresponding to our digital assets sales revenues.

Current wording

Digital assets sales costs represent the cost basis of the digital intangible assets transferred corresponding to our digital assets sales revenues.

Previous wording

Net change in unrealized appreciation on digital assets reflects the remeasurement of our owned and controlled digital assets to fair value at each financial reporting date.

Current wording

Net change in unrealized appreciation (loss) on digital assets reflects the remeasurement of our owned and controlled digital assets to fair value at each financial reporting date.

Previous wording

The gain on disposal of assets represents the net proceeds from the sale of digital assets and assets associated with an asset purchase agreement.

Current wording

Gain (loss) on disposal of digital assets represents the net proceeds from the sale of digital assets and assets associated with an asset purchase agreement.

Previous wording

The increase was primarily attributable to higher digital asset trading activity resulting from the expansion of trading pairs on the platform, increased activity from existing clients, and an expanding client base. We present digital assets sales revenue on a gross basis (other than the portion of digital assets sales revenue recognized in connection with sales and purchases on our platform of certain stablecoins that are classified as financial assets, which is recognized on a net basis) because of our role as principal for accounting purposes in sales of digital assets, as we control the digital assets prior to transfer to the customer, are primarily responsible for fulfilling the transaction, and have discretion in pricing, including the ability to incorporate spreads relative to market prices. As a result, the significant volume of digital asset transactions on our platform results in significant digital assets sales revenue with corresponding digital assets sales costs. For the three months ended March 31, 2026, digital assets sales costs increased by $2,045.7 million, or 127.7%, over the corresponding period in the prior year.

Current wording

The increase was primarily attributable to higher digital asset trading activity resulting from the expansion of trading pairs on the platform, increased activity from existing clients, and an expanding client base. We present digital assets sales revenue on a gross basis (other than the portion of digital assets sales revenue recognized in connection with sales and purchases on our platform of certain stablecoins that are classified as financial assets, which is recognized on a net basis) because of our role as principal for accounting purposes in sales of digital assets, as we control the digital assets prior to transfer to the customer, are primarily responsible for fulfilling the transaction, and have discretion in pricing, including the ability to incorporate spreads relative to market prices. As a result, the significant volume of digital asset transactions on our platform results in significant digital assets sales revenue with corresponding digital assets sales costs. For the three months ended June 30, 2026, digital assets sales costs increased by $1,916.5 million, or 84.3%, over the corresponding period in the prior year.

Previous wording

Staking revenue decreased by $96.6 million, or 66.2%, for the three months ended March 31, 2026 compared to the same period in the prior year, primarily driven by lower staked digital asset volume on our platform and a decline in digital asset prices. We present staking revenue on a gross basis because of our role as principal for accounting purposes in connection with our clients’ staking activities. As a result, the significant volume of staking activities on our platform results in staking revenue with corresponding staking fees. For the three months ended March 31, 2026, staking fees decreased by $86.3 million, or 67.6%, over the corresponding period in the prior year.

Current wording

Staking revenue decreased by $26.2 million, or 28.8%, for the three months ended June 30, 2026 compared to the same period in the prior year, primarily driven by lower staked digital asset volume on our platform and a decline in digital asset prices. We present staking revenue on a gross basis because of our role as principal for accounting purposes in connection with our clients’ staking activities. As a result, the significant volume of staking activities on our platform results in staking revenue with corresponding staking fees. For the three months ended June 30, 2026, staking fees decreased by $21.0 million, or 25.7%, over the corresponding period in the prior year.

Previous wording

Subscriptions and services revenue increased by $2.6 million, or 11.3%, for the three months ended March 31, 2026 compared to the same period in the prior year. The increase was primarily driven by an increase in our Number of Clients, growth in professional services projects, and higher lending activity.

Current wording

Subscriptions and services revenue increased by $2.2 million, or 8.5%, for the three months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily driven by an increase in our Number of Clients and higher lending activity.

Previous wording

Stablecoin-as-a-Service revenue increased by $38.2 million, for the three months ended March 31, 2026 compared to $4,000 in the same period in the prior year. The increase results from the launch of this new service in March 2025. We earn interest on stablecoin reserve assets and recognize that revenue on a gross basis. We recognize stablecoin sponsor fees, which largely offset the interest revenue. For the three months ended March 31, 2026, stablecoin sponsor fees increased by $35.3 million over the corresponding period in the prior year.

Current wording

Stablecoin-as-a-Service revenue increased by $23.2 million, for the three months ended June 30, 2026 compared to $15.7 million in the same period in the prior year. The increase results from the launch of this new service in March 2025. We earn interest on stablecoin reserve assets and recognize that revenue on a gross basis. We recognize stablecoin sponsor fees, which largely offset the interest revenue. For the three months ended June 30, 2026, stablecoin sponsor fees increased by $20.5 million over the corresponding period in the prior year.

Previous wording

Interest income increased by $0.7 million, or 258.5%, for the three months ended March 31, 2026 compared to the same period in the prior year. The increase was primarily attributable to an increase in fiat treasury investments.

Current wording

Interest income increased by $0.5 million, or 132.2%, for the three months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily attributable to an increase in fiat treasury investments.

Previous wording

Digital assets sales costs increased by $2,045.7 million, or 127.7%, for the three months ended March 31, 2026 compared to the same period in the prior year. The increase was primarily attributable to higher transaction volumes driven by the expansion of trading pairs on the platform, increased activity from existing clients, and growth in the overall client base.

Current wording

Digital assets sales costs increased by $1,916.5 million, or 84.3%, for the three months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily attributable to higher transaction volumes driven by the expansion of trading pairs on the platform, increased activity from existing clients, and growth in the overall client base.

Previous wording

Staking fees decreased by $86.3 million, or 67.6%, for the three months ended March 31, 2026 compared to the same period in the prior year. The decrease was primarily driven by lower staked digital asset volume on our platform and a decline in digital asset prices.

Current wording

Staking fees decreased by $21.0 million, or 25.7%, for the three months ended June 30, 2026 compared to the same period in the prior year. The decrease was primarily driven by lower staked digital asset volume on our platform and a decline in digital asset prices.

Previous wording

Stablecoin sponsor fees increased by $35.3 million for the three months ended March 31, 2026 compared to the same period in the prior year, as no such fees were incurred during that period. The increase was driven by the launch of this new service in March 2025.

Current wording

Stablecoin sponsor fees increased by $20.5 million for the three months ended June 30, 2026 compared to the same period in the prior year. The increase was driven by the launch of this new service in March 2025.

Previous wording

Interest expense increased by $4.3 million, or 257.2%, for the three months ended March 31, 2026 compared to the same period in the prior year. The increase in interest expense was primarily attributable to higher borrowings and related interest costs incurred to support the expansion of our lending product.

Current wording

Interest expense increased by $4.6 million, or 366.9%, for the three months ended June 30, 2026 compared to the same period in the prior year. The increase in interest expense was primarily attributable to higher borrowings and related interest costs incurred to support the expansion of our lending product.

Previous wording

Compensation and benefits expenses increased by $16.5 million, or 67.8%, for the three months ended March 31, 2026 compared to the same period in the prior year, primarily driven by increased headcount as a result from our continued investments in research and development initiatives and go-to-market teams, as well as higher stock-based compensation expense, primarily related to the satisfaction of the performance vesting condition on outstanding RSUs upon completion of our IPO.

Current wording

Compensation and benefits expenses increased by $6.0 million, or 25.6%, for the three months ended June 30, 2026 compared to the same period in the prior year, primarily driven by increased headcount as a result of our continued investments in research and development initiatives and go-to-market teams, as well as higher stock-based compensation expense, primarily related to the satisfaction of the performance vesting condition on outstanding RSUs upon completion of our IPO.

Previous wording

Amortization and depreciation expenses increased by $0.9 million, or 99.4%, for the three months ended March 31, 2026 compared to the same period in the prior year. The increase was driven primarily by amortization and depreciation charges related to intangible assets acquired through the Brassica and HeightZero acquisitions, as well as higher capital expenditures and capitalized development costs incurred.

Current wording

Depreciation and amortization expenses increased by $1.2 million, or 142.4%, for the three months ended June 30, 2026 compared to the same period in the prior year. The increase was driven primarily by depreciation and amortization charges related to intangible assets acquired through the Brassica and HeightZero acquisitions, as well as higher capital expenditures and capitalized development costs incurred.

Previous wording

Net change in unrealized loss on digital assets increased by $19.9 million, or 58.9%, for the three months ended March 31, 2026 compared to the same period in the prior year. The increase in net change in unrealized loss of digital assets was primarily driven by decline in digital asset prices.

Current wording

Net change in unrealized appreciation (loss) on digital assets decreased by $74.7 million, or 133.7%, for the three months ended June 30, 2026 compared to the same period in the prior year. The decrease in net change in unrealized appreciation (loss) of digital assets was primarily driven by decline in digital asset prices.

Previous wording

Tax benefits increased by $3.7 million, or 51.0%, for the three months ended March 31, 2026 compared to the same period in the prior year. The increase was primarily due to our annualized effective income tax rate of 15.5% for the three months ended March 31, 2026, calculated based on first quarter actual results and forecasted results for the remainder of fiscal year 2026, compared to from the effective income tax rate of 22.0% for the three months ended March 31, 2025, primarily due to state and local taxes and limitations on the deductibility of executive compensation, partially offset by the benefit recognized upon the settlement of employee stock-based awards.

Current wording

Provision for (benefit from) income taxes changed by $26.8 million, or 177.2%, for the three months ended June 30, 2026 compared to the same period in the prior year, from a tax expense of $15.1 million to a tax benefit of $11.7 million. The change was primarily due to the loss from operations during the three months ended June 30, 2026, as well as our annualized effective income tax rate of 38.0% for the three months ended June 30, 2026 compared to the effective income tax rate of 21.0% for the three months ended June 30, 2025, primarily due to state, local, and foreign taxes and the benefit recognized upon the settlement of employee stock-based awards, partially offset by the limitations on the deductibility of executive compensation.

Previous wording

General and administrative expenses increased by $4.8 million, or 30.6%, for the three months ended March 31, 2026 compared to the same period in the prior year. The increase was driven primarily by higher audit and accounting fees, legal fees, conference and event costs, and dues and subscriptions.

Current wording

General and administrative expenses increased by $8.4 million, or 25.3%, for the six months ended June 30, 2026 compared to the same period in the prior year. The increase was driven primarily by higher audit and accounting fees, legal fees, conference and event costs, and dues and subscriptions.

Previous wording

Prior to our IPO, we financed our operations primarily through issuances of preferred stock, cash generated from operations, and holdings in our Bitcoin treasury reserve. As of March 31, 2026, our primary sources of liquidity were our cash and cash equivalents of $186.6 million, excluding cash and cash equivalents segregated for the benefit of stablecoin holders - restricted. As of March 31, 2026 our digital assets included both treasury and borrowed Bitcoin. The Company owned Bitcoin treasury held as of March 31, 2026 was 2,449 BTC with a fair value of $167.1 million based on observable market prices, representing approximately 2.8% of our total assets.

Current wording

Prior to our IPO, we financed our operations primarily through issuances of preferred stock, cash generated from operations, and holdings in our Bitcoin treasury reserve. As of June 30, 2026, our primary sources of liquidity were our cash and cash equivalents of $159.0 million, excluding cash and cash equivalents segregated for the benefit of stablecoin holders - restricted. As of June 30, 2026 our digital assets included both treasury and borrowed Bitcoin. The Company owned Bitcoin treasury held as of June 30, 2026 was 2,523 Bitcoin with a fair value of $147.7 million based on observable market prices, representing approximately 2.4% of our total assets.

Previous wording

In January 2026, we completed our IPO, in which we sold 11,026,365 shares of Class A common stock, resulting in net proceeds of $174.3 million after deducting underwriting discounts and other offering costs.

Current wording

In January 2026, we completed our IPO, in which we sold 11,026,365 shares of Class A common stock, resulting in net proceeds of $174.0 million after deducting underwriting discounts and other offering costs.

Previous wording

Net cash used from operating activities was $29.5 million for the three months ended March 31, 2026, primarily driven by net loss generated during the period of $60.7 million, partially offset by non-cash adjustments totaling $56.7 million. These adjustments primarily consisted of fair value changes related to digital assets, stock-based compensation, and depreciation and amortization. Additionally, changes in working capital contributed to operating cash flow, including $3.9 million generated from the sale of digital assets, offset by net cash use of $28.9 million from changes in accounts receivable (net), other assets, accounts payable and other liabilities.

Current wording

Net cash used in operating activities was $36.2 million for the six months ended June 30, 2026, primarily driven by net loss generated during the period of $79.7 million, partially offset by non-cash adjustments totaling $66.3 million. These adjustments primarily consisted of fair value changes related to digital assets, stock-based compensation, and depreciation and amortization. Additionally, changes in working capital contributed to operating cash flow, including $13.2 million generated from the sale of digital assets, offset by net cash use of $35.4 million from changes in accounts receivable (net), other assets, accounts payable and other liabilities.

Previous wording

Net cash generated from operating activities was $8.2 million for the three months ended March 31, 2025, primarily driven by net loss generated during the period of $25.7 million, partially offset by non-cash adjustments totaling $17.4 million. These adjustments primarily consisted of fair value changes related to digital assets, stock-based compensation, and depreciation and amortization. Additionally, changes in working capital contributed to operating cash flow, including $14.9 million generated from the sale of digital assets, offset by net cash use of $17.2 million from changes in accounts receivable (net), other assets, accounts payable and other liabilities.

Current wording

Net cash used in operating activities was $8.1 million for the six months ended June 30, 2025, primarily driven by non-cash adjustments totaling $59.1 million, primarily consisted of fair value changes related to digital assets, stock-based compensation, and depreciation and amortization. These are partially offset by net income generated during the period of $12.6 million. Additionally, changes in working capital contributed to operating cash flow, including $32.5 million generated from the sale of digital assets, offset by net cash use of $8.5 million from changes in accounts receivable (net), other assets, accounts payable and other liabilities.

Previous wording

Net cash used in investing activities was $11.3 million for the three months ended March 31, 2026. This cash outflow was primarily driven by $5.8 million in net loan originations and repayments, $14.8 million invested in digital assets, and $2.3 million in equipment and software purchases.

Current wording

Net cash used in investing activities was $7.9 million for the six months ended June 30, 2026. This cash outflow was primarily driven by $19.2 million in net loan originations and repayments, $22.3 million invested in digital assets, and $4.9 million in equipment and software purchases.