DIGITAL ASSETS

12 Months Ended

Dec. 31, 2025

Digital assets

The following table presents the Company’s significant digital asset holdings as of December 31, 2025 and 2024, respectively:


	As of December 31, 2025
(in thousands, except for quantity)	Quantity	Cost Basis		Fair Value
Bitcoin	38,507	$	3,277,867	$	3,369,245
Bitcoin - receivable (1)	15,315	1,075,665		1,340,055

Total bitcoin holdings	53,822	4,353,532		4,709,300

Other digital assets		8,585		2,391
Total digital assets held as of December 31, 2025		$	4,362,117	$	4,711,691


	As of December 31, 2024
(in thousands, except for quantity)	Quantity	Cost Basis		Fair Value
Bitcoin	34,519	$	2,415,963	$	3,223,989
Bitcoin - receivable (1)	10,374	401,334		968,436
Total bitcoin holdings	44,893	2,817,297		4,192,425

Kaspa	34,817,098	5,624		4,327
Total digital assets held as of December 31, 2024		$	2,822,921	$	4,196,752

(1) The Company’s bitcoin - receivable holdings include bitcoin loaned or pledged as collateral, excluding the allowance for credit loss. Refer to Note 5 – Digital Assets, “Digital assets - receivable, net,” and Note 16 – Debt, for further information.

The Company earned 33 and 51 bitcoin that were pending distribution from the Company’s equity method investee, the ADGM Entity (as defined below), which are excluded from the Company’s holdings as of December 31, 2025 and 2024, respectively.

The following table presents a roll-forward of the Company’s digital asset holdings during the years ended December 31, 2025 and 2024:


(in thousands)	Bitcoin Fair Value		Other Digital Assets Fair Value
Digital assets at December 31, 2023	$	639,660	$	—
Additions of digital assets:
Mining	599,436		23,026
Purchases of digital assets	1,943,882		2,978
Dividends from equity method investee	25,299		—
Disposition of digital assets	(133,165)		(19,125)
Realized gain (loss) on digital assets	616,042		(1,255)
Unrealized gain (loss) on digital assets	200,324		(1,297)
Other	1,151		—
Transferred to Digital assets - receivable, net	(668,640)		—
Digital assets at December 31, 2024	3,223,989		4,327
Additions of digital assets:
Mining	873,809		11,583
Purchases	473,734		—
Dividends from equity method investee	18,858		—
Disposition of digital assets	(413,118)		(10,067)
Realized gain on digital assets (1)	154,655		1,445
Unrealized loss digital assets	(454,764)		(4,897)
Other	17,090		—

Transferred to Digital assets - receivable, net	(525,008)		—
Digital assets at December 31, 2025	$	3,369,245	$	2,391

(1) Realized gains result from digital asset dispositions and from bitcoin that is loaned, actively managed or pledged as collateral.

Digital assets - receivable, net

Lending

Throughout 2024, and once again in the third quarter of 2025, the Company entered into master securities loan agreements with various counterparties that represent digital asset loan receivables to generate returns from a portion of its bitcoin holdings. As of December 31, 2024, a total of 7,377 bitcoin were loaned to counterparties under these agreements. During the year ended December 31, 2025, an additional net 2,000 bitcoin were loaned to counterparties, increasing the total bitcoin loaned under these agreements to 9,377.

Trading

On May 6, 2025, the Company entered into an SMA agreement and transferred approximately 2,000 bitcoin to be actively managed under the arrangement. For the year ended December 31, 2025, the SMA incurred a net loss of approximately $22.1 million. On December 4, 2025, the Company terminated the agreement and withdrew the remaining 1,777 bitcoin held within the SMA, which were returned to the Company and reclassified within “Digital asset, net of current portion.”

Borrowing

As of December 31, 2025 and December 31, 2024, the Company had a total of 5,938 and 2,997 bitcoin pledged as collateral, respectively, in connection with outstanding borrowings under the Line of Credit. Refer to Note 16 – Debt, for further information.

Digital assets - receivable, net consists of the following:


(in thousands)	December 31, 2025		December 31, 2024
Digital asset receivable - lending	$	820,468	$	688,674
Digital asset receivable - trading	1		—
Digital asset receivable - borrowing	519,586		279,762
Total digital asset receivable	1,340,055		968,436
Less: Allowance for credit loss	(3,187)		(8,379)
Digital assets - receivable, net	$	1,336,868	$	960,057

The aforementioned digital asset receivables are initially recognized at fair value upon transfer and subsequently remeasured at fair value each reporting period. The changes in fair value are recognized as “Change in fair value of digital assets - receivable, net” on the Consolidated Statements of Operations.

The allowance for credit losses reflects the Company’s current estimate of the potential credit losses associated with the digital assets loaned, transferred to be actively managed, and bitcoin pledged as collateral in connection with outstanding borrowings. The credit loss is recorded as a valuation account, directly offsetting the digital asset receivables on the Consolidated Balance Sheets. Changes in the allowance for credit losses on loans, based on quarterly analyses, are recorded as provision for credit losses within “Other” on the Consolidated Statements of Operations.

In connection with the termination of the SMA agreement and the subsequent return of bitcoin previously actively managed, the related allowance for credit losses was fully released.

The Company assesses the creditworthiness of its borrowers on a quarterly basis. For the purpose of determining the allowance for credit loss, financial assets with similar risk characteristics are pooled together. Our financial assets are aggregated by exposure term and assigned risk ratings. The Company considers credit ratings and various other factors, including the collateral and/or security of the digital asset receivable. The Company’s considerations are aligned with current ratings used by major credit ratings agencies.

Given the limited historical data related to digital asset receivables and losses incurred related to digital asset receivables, the Company chose to rely on external data to perform the calculation of expected credit losses. The Company utilized the PD LGD approach to estimate the allowance for credit loss. In order to apply the PD LGD approach, management considered the lifetime of the digital asset receivables, the reasonable and supportable forecast, and the PD LGD.

As of December 31, 2025, the Company recorded a corresponding allowance for credit loss of $3.2 million, based on the PD LGD approach. As of December 31, 2024, the Company had digital asset receivables outstanding and recorded an allowance for credit loss of $8.4 million.

MARA Holdings, Inc. 10-K