As further discussed in Note 12, on March 31, 2025, in connection with the Transactions, the Company entered into a Master Colocation Services Agreement and Master Managed Services Agreement with Parent. Under both agreements, Parent provides the Company with colocation, hosting, management, oversight, strategy, compliance, operational and other services for its Bitcoin mining operations located at Parent’s facilities. Pursuant to an Exclusivity Agreement between the Company and Parent, all of the Company’s Bitcoin miners are located at Parent’s facilities. The Company has determined that it has embedded operating leases at three of the facilities governed by this arrangement and has elected to combine lease and non-lease components as permitted under ASC 842. A fourth facility governed by this arrangement includes payments that are variable and therefore expensed as incurred.

The following table shows the ROU assets and lease liabilities as of September 30, 2025 and December 31, 2024:


(in USD thousands)	September 30, 2025		December 31, 2024
ROU assets
Operating leases	$	174,647	$	—
Total ROU assets	$	174,647	$	—

Lease liabilities
Operating leases	$	185,614	$	—
Total lease liabilities	$	185,614	$	—

The Company’s lease costs are comprised of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in USD thousands)	2025		2024		2025		2024
Operating lease cost	$	8,395	$	—	$	11,109	$	—
Variable lease cost		20,813		—		32,507		—
Total lease expense	$	29,208	$	—	$	43,616	$	—

The following table presents supplemental lease information:


	Nine Months Ended
	September 30,
(in USD thousands)	2025		2024
Operating cash outflows - operating leases	$	—	$	—


	Nine Months Ended
	September 30,
	2025			2024
Weighted-average remaining lease term - operating leases (in years)		4.67			—
Weighted-average discount rate(1) – operating leases		6.42	%		—	%

(1) The Company’s operating leases do not provide an implicit interest rate, therefore the Company uses the incremental borrowing rate at the lease commencement date in determining the present value of lease payments. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis for similar assets over the term of the lease.

The following table presents the Company’s future minimum operating lease payments as of September 30, 2025:


	Operating
(in USD thousands)	Leases
Remainder of 2025	$	10,214
2026		41,396
2027		42,492
2028		43,621
2029		44,783
Thereafter		22,470
Total undiscounted lease payments		204,976
Less: present value discount		(19,362	)
Present value of operating lease liabilities	$	185,614