Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 55

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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 and provide shareholders with exposure to emerging decentralized technologies.

Rationale
for Strategy

Key
factors underlying the DAT Strategy include:

●The
                                            growth and potential of the Worldcoin ecosystem

●The
                                            belief that certain digital assets may serve as long-term stores of value

●The
                                            ability to report digital assets at fair value under ASU 2023-08

●Opportunities
                                            for differentiated long-term returns

●The
                                            availability of capital to scale a treasury strategy of meaningful size

●Management
                                            expects digital assets to remain a significant component of our long-term capital allocation
                                            framework.

Capital
Raising Activities

During
the quarter ended September 30, 2025, we completed substantial financing transactions to support the DAT Strategy:

●We
                                            raised $270 million in gross proceeds through a private placement of equity securities.

●We
                                            generated additional proceeds through our at-the-market (“ATM”) equity offering
                                            program.

A
significant portion of the PIPE and ATM proceeds was deployed to acquire digital assets. These capital raises materially strengthened
our liquidity and expanded our balance sheet.

Digital
Asset Acquisitions

During
the quarter, we acquired digital assets with an aggregate fair value of approximately $287 million as of September 30, 2025. Our holdings
consist primarily of:

●Worldcoin
                                            (WLD and WCWLD)

●Ethereum
                                            (ETH)

●U.S.
                                            dollar-denominated stablecoins

●Other
                                            digital assets used for liquidity management, trade settlement, or operational purposes

Digital
assets are custodied with institutional-grade providers, including Kraken, Coinbase, and FalconX.

Custody,
Concentrations and Transfer Restrictions

As
of September 30, 2025, substantially all digital assets were held with a small number of U.S.-based institutional custodians under cold-storage
arrangements. From time to time, a significant portion of our digital assets may be concentrated with a single custodian. Certain assets
(including staking-ineligible or restricted tokens, if any) may be subject to withdrawal, settlement, or transfer restrictions pursuant
to platform or network constraints. We continually evaluate custodian concentration and portability risk as part of our liquidity planning.

Accounting
for Digital Assets

Effective
January 1, 2025, we adopted ASU 2023-08, which requires eligible digital assets to be measured at fair value, with changes recognized
in