Derivatives (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of balance sheet classification and effect of derivatives on statements of operations and comprehensive (loss) income


(in USD thousands)			December 31, 2025						December 31, 2024
Derivative	Balance Sheet Line		Asset			Liability			Asset			Liability
Derivatives not designated as hedging instruments:
Bitcoin redemption options	Derivative assets		$	117,402		$	—		$	18,076		$	—
Covered call options	Derivative liability			—			—			—			18,437
Warrant liability	Warrant liability			—			146			—			—
Total derivatives			$	117,402		$	146		$	18,076		$	18,437


(in USD thousands)			Twelve Months Ended						Six Months Ended
Derivative	Statement of Operations Line		December 31, 2025			December 31, 2024			December 31, 2023
Derivatives not designated as hedging instruments:
Bitcoin redemption options	Gain on derivatives		$	33,604		$	2,980		$	—
Covered call options	Gain on derivatives			27,946			3,800			—
Warrant liability	Gain on warrant liability			384			—			—
Total derivatives			$	61,934		$	6,780		$	—

Summary of activity and change in fair value of the Company's Bitcoin redemption option


		Twelve Months Ended						Six Months Ended
		December 31,						December 31,
(in USD thousands)		2025			2024			2023
Balance, beginning of period		$	18,076		$	—		$	—
Additions			—			15,096			—
Transfer out of Level 3 ⁽¹⁾			(18,076)			2,980			—
Balance, end of period		$	—		$	18,076		$	—

⁽¹⁾The Bitcoin redemption option was transferred out of Level 3 during the twelve months ended December 31, 2025 due to changes in the observability of inputs used in the valuation.

Summary of activity and change in fair value


		Twelve Months Ended						Six Months Ended
		December 31,						December 31,
(in USD thousands)		2025			2024			2023
Balance, beginning of period		$	—		$	—		$	—
Balance, end of period		$	—		$	—		$	—

Separated embedded derivative from convertible note

Derivatives

Schedule of valuation inputs for derivatives


		December 31, 2025
Dividend yield		—	%
Implied volatility		99.20	%
Risk-free interest rate		3.80	%
Credit spread		16.30	%

Warrant liability

Derivatives

Schedule of valuation inputs for derivatives


			December 31, 2025
Exercise price		$	1.50
Expected price volatility			130.00	%
Risk-free interest rate			4.06	%
Expected term (in years)			9.00
Dividend yield			—	%

Summary of activity and change in fair value


		Twelve Months Ended
(in USD thousands)		December 31, 2025
Balance, beginning of period		$	—
ABTC-Gryphon Warrants assumed in ABTC Merger			9,011
Exercise of warrants			(8,481)
Change in fair value			(384)
Balance, end of period		$	146

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

Hut 8 Corp. 10-K