LEASES

12 Months Ended

Dec. 31, 2024

As of December 31, 2024 the Company had operating and finance leases primarily for office space, mining facilities and land in the United States.

The Company had an arrangement with Applied Digital Corporation for the use of energized cryptocurrency mining facilities under which the Company pays for electricity per megawatt based on usage. The Company has determined that it has embedded operating leases at two of the facilities governed by this arrangement that commenced in January and March 2023, and has elected not to separate lease and non-lease components. Payment for these two operating leases are entirely variable and are based on usage of electricity, and expensed as incurred.

The Company has amortized the ROU assets totaling $0.8 million and $0.3 million for the year ended December 31, 2024 and 2023, respectively.

The following table presents the assets and liabilities related to the Company’s operating and finance leases as of December 31, 2024 and 2023:


(in thousands)		December 31, 2024		December 31, 2023
Assets	Balance Sheet Classification
Operating lease ROU assets	Operating lease right-of-use assets	$	16,874	$	443
Finance lease ROU assets	Property and equipment, net	2,877		—
Total ROU assets		$	19,751	$	443

Liabilities
Current portion:
Operating lease liabilities	Operating lease liabilities, current portion	$	239	$	124
Finance lease liability	Finance lease liability, current portion	168		—
Long-term portion:
Operating lease liabilities	Operating lease liabilities, net of current portion	22,977		354
Finance lease liability	Finance lease liability, net of current portion	3,709		—
Total lease liabilities		$	27,093	$	478

Lease costs are recorded on a straight-line basis within operating expenses. The Company’s total lease expenses are comprised of the following:


	For the Year Ended December 31,
(in thousands)		2024		2023		2022
Lease costs:
Operating lease cost		$	838	$	315	$	327
Finance lease cost:
Amortization of ROU asset (1)		22		—		—

Short-term lease rent expense		59		36		29
Variable lease cost		107,420		80,108		—
Total rent expense		$	108,339	$	80,459	$	356

(1) Amortization of finance lease ROU asset is included in “Cost of revenues - depreciation and amortization” on the Consolidated Statements of Operations.

Additional information regarding the Company’s leasing activities is as follows:


	For the Year Ended December 31,
	2024			2023			2022
Operating cash flows from operating leases	$	629		$	(32)		$	67

Financing cash flows from finance lease	$	163		$	—		$	—

Weighted-average remaining lease term (in years):
Operating leases	9.1			3.2			3.9
Finance lease	96.3			—			—
Weighted-average discount rate:
Operating leases	7.0		%	5.0		%	5.0		%
Finance lease	7.2		%	—		%	—		%

The following table presents the Company’s future minimum lease payments as of December 31, 2024:


(in thousands)
Year	Operating Leases		Finance Lease
2025	$	1,855	$	168
2026	2,478		173
2027	4,233		178
2028	4,180		183
2029	3,993		189
Thereafter	17,433		88,907
Total	34,172		89,798
Less: Imputed interest	(10,956)		(85,921)
Present value of lease liability	$	23,216	$	3,877