Frmo Stock Earnings Reports

FRMO reported a mark-to-market loss for the quarter driven mainly by a decline in its Texas Pacific Land Trust holding (linked to a year-to-date drop in oil and natural gas prices), but emphasized this was not a cash loss. Cash on the balance sheet rose to about $25 million and much of the company's assets are liquid. The company is aggressively building a cryptocurrency operating business (via Winland and related entities), pursuing a Scrypts mining strategy that mines Dogecoin and Litecoin (keeping Litecoin and using mining cash to buy Bitcoin) because it believes this provides a high return on capital and longer equipment useful life versus Bitcoin-only mining. FRMO currently owns roughly 44% of Winland and plans to continue accumulating (consolidation would occur >50%), which would materially change financial presentation. FRMO also holds positions in Consensus Mining and various Horizon Kinetics Hard Assets vehicles and takes fees in-kind when funds are fully invested. Management continues a disciplined, gradual acquisition approach across royalties, mining equipment, and securities to mitigate obsolescence and timing risk. The firm also runs a material short position in path-dependent ETFs (which it expects to decay over time) and attributes a meaningful portion of its cash to proceeds from those shorts. Management reiterated a long-term buy-and-hold orientation for core holdings (e.g., Texas Pacific Land) and noted tax considerations limit moving cryptocurrencies between entities.