| Cryptocurrencies |
6. Cryptocurrencies
The following table presents
information about our cryptocurrencies:
| | |
December 31,
2025 | | |
December 31,
2024 | | |
December 31,
2023 | |
| | |
US$ | | |
US$ | | |
US$ | |
| Beginning balance | |
| 32,143,476 | | |
| 116,081,331 | | |
| 1,270,806 | |
| Adoption of ASC 2023-08 | |
| — | | |
| — | | |
| 39,996 | |
| Cryptocurrencies mined | |
| 49,209,435 | | |
| 103,868,145 | | |
| 37,003,196 | |
| Cryptocurrencies from mining machine revenue | |
| 14,484,765 | | |
| 182,574,508 | | |
| 199,456,358 | |
| Cryptocurrencies from hosting revenue | |
| 2,685,275 | | |
| 6,089,364 | | |
| 316,626 | |
| Cryptocurrencies paid to mining pool participants | |
| (5,618,035 | ) | |
| (58,269,299 | ) | |
| (23,765,150 | ) |
| Disposal of cryptocurrencies | |
| (59,515,915 | ) | |
| (280,951,961 | ) | |
| (84,426,550 | ) |
| Cryptocurrencies received from repayment from related parties | |
| 101,336 | | |
| — | | |
| — | |
| Cryptocurrencies lent to third party | |
| (5,000,000 | ) | |
| — | | |
| — | |
| Cryptocurrencies received from repayment from third party | |
| 5,197,014 | | |
| — | | |
| — | |
| Cryptocurrencies received from (invested in) short-term investments, net | |
| 16,631,859 | | |
| (12,539,871 | ) | |
| — | |
| Cryptocurrencies paid to settle futures contracts, net | |
| (560,492 | ) | |
| (726,746 | ) | |
| — | |
| Cryptocurrencies used for payments of dividends | |
| (949,000 | ) | |
| (5,000,000 | ) | |
| — | |
| Cryptocurrencies used for payments of employee compensation | |
| (1,172,391 | ) | |
| (969,477 | ) | |
| (10,264,540 | ) |
| Cryptocurrencies used for payments of expenses | |
| (4,377,234 | ) | |
| (7,329,446 | ) | |
| (3,418,735 | ) |
| Cryptocurrencies used for payments of accounts payable | |
| — | | |
| (1,802,802 | ) | |
| (292,684 | ) |
| Cryptocurrency paid to related party | |
| — | | |
| (433,833 | ) | |
| (150,714 | ) |
| Cryptocurrency received to settle other receivables | |
| 2,546,315 | | |
| — | | |
| — | |
| Change in fair value | |
| (23,355,675 | ) | |
| (8,446,437 | ) | |
| 312,722 | |
| Ending balance | |
| 22,450,733 | | |
| 32,143,476 | | |
| 116,081,331 | |
During the year ended December 31, 2025, a total gain of US$965,306
and a total loss of US$11,588,358 were recognized on all sales/exchange of cryptocurrencies and are included in the change in fair value
of cryptocurrencies on the consolidated statements of operations and comprehensive (loss) income. Change in fair value of cryptocurrencies
are consist of a total gain of $968,798 and a total loss of $24,324,473 which was determined on a crypto-asset -by-crypto-asset basis.
During the year ended December 31, 2024, a total
gain of US$2,943,398 and a total loss of US$5,741,476 were recognized on all sales/exchanges of cryptocurrencies and are included in the
change in fair value of cryptocurrencies on the consolidated statements of operations and comprehensive income. The change in fair value
of cryptocurrencies consists of a total gain of $3,156,060 and a total loss of $11,602,497 which was determined on a crypto-asset -by-crypto-asset
basis.
During the year ended December 31,
2023, a total gain of US$1,090,765 and a total loss of US$753,775 were recognized on all sales/exchanges of cryptocurrencies and are
included in the change in fair value of cryptocurrencies on the consolidated statements of operations and comprehensive income. The
change in fair value of cryptocurrencies consists of a total gain of $1,094,827 and a total loss of $782,105 which was determined on
a crypto-asset -by-crypto-asset basis.
The following table presents
ending balance about each of the Company’s cryptocurrencies:
| | |
| | |
| | |
December 31,
2025 | |
| | |
Quantity | | |
Cost | | |
Fair Value | |
| | |
| | |
US$ | | |
US$ | |
| USDT | |
| 7,313,220 | | |
| 7,313,220 | | |
| 7,313,220 | |
| KASPA | |
| 328,479,094 | | |
| 26,418,442 | | |
| 14,085,184 | |
| Others | |
| * | | |
| 1,411,678 | | |
| 1,052,329 | |
| Total | |
| | | |
| 35,143,340 | | |
| 22,450,733 | |
| | |
| | |
| | |
December 31,
2024 | |
| | |
Quantity | | |
Cost | | |
Fair Value | |
| | |
| | |
US$ | | |
US$ | |
| USDT | |
| 2,352,373 | | |
| 2,352,373 | | |
| 2,352,373 | |
| KASPA | |
| 235,273,895 | | |
| 32,989,316 | | |
| 27,425,407 | |
| Others | |
| * | | |
| 2,450,146 | | |
| 2,365,696 | |
| Total | |
| | | |
| 37,791,835 | | |
| 32,143,476 | |
| * | Others consist of various cryptocurrencies with immaterial
balances. Therefore, their quantity information is not disclosed. |
|