Digital Assets

3 Months Ended

Mar. 31, 2024

6. DIGITAL ASSETS

Digital asset holdings were comprised of the following:

	March 31, 2024		December 31, 2023
ETH	$	1,458,800	$	7,123,300
USDT		6,392,300		573,400
	$	7,851,100	$	7,696,700

The following table presents the Company’s ETH and USTD holdings as of March 31, 2024 and December 31, 2023:

	As of March 31, 2024
	Quantity		Cost Basis		Fair Value
ETH		399.89	$	1,458,800	$	1,458,800
USDT		6,392,300	$	6,392,300	$	6,392,300

	As of December 31, 2023
	Quantity		Cost Basis		Fair Value
ETH		3,122.48	$	5,978,300	$	7,123,300
USDT		573,400	$	573,400	$	573,400

As of March 31, 2024, the Company held 399.89 ETH, with fair value price of $3,648 per unit. As of December 31, 2023, the Company held 3,122.48 ETH, with fair value price of $2,281.32 per unit.

For the three months ended March 31, 2024, the Company recognized an increase in fair value of ETH of $2,540,700 and an investment income of $6,300 from sales of ETH. For the three months ended March 31, 2023, the Company recognized an increase in fair value of ETH of $215,400.

As of March 31, 2024 and December 31, 2023, the Company held 6,392,300 and 573,400 USDT, respectively. The fair value of USDT were kept at $1.00 because one USDT is pegged to one U.S. dollar.

Additional information about digital assets

The following table presents additional information about ETH for the three months ended March 31, 2024 and 2023:

	For the Three Months Ended March 31,
	2024			2023
				(revised)
Opening balance	$	7,123,300		$	369,200
Cumulative-effect adjustment of opening balance due to adoption of fair value measurement		-			30,600
Addition of ETH staking reward and other services		14,300			6,000
Purchases of ETH from exchange of USDT		1,636,500			-
Purchases of ETH from exchange of USDC		-			285,700
Exchange of ETH into USDT		(7,470,600	)		-
Exchange of ETH into USDC		(2,391,700	)		-
Return of ETH to a third party		-			(48,500	)
Payment of ETH for other expenses		-			(100	)
Investment income from sales of ETH		6,300			-
Changes in fair value of ETH		2,540,700			215,400
	$	1,458,800		$	858,300

The following table presents additional information about USDT for the three months ended March 31, 2024 and 2023:

	For the Three Months Ended March 31,
	2024			2023
Opening balance	$	573,400		$	90,100
Purchases of USDT from exchange of digital assets		7,989,200			-
Purchases of USDT from exchange of USDC		100,000			-
Collection of USDT from subscription advance from investors		75,000			-
Exchange of USDT into ETH		(1,636,500	)		-
Exchange of USDT into USD		(701,000	)		-
Payment of service fees		(7,800	)		(87,800	)
	$	6,392,300		$	2,300

Mega Matrix Corp. 10-Q/A