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Cryptocurrencies
 6 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Cryptocurrencies
(10) Cryptocurrencies
Cryptocurrencies are accounted for as an
indefinite-lived
intangible assets and are recognized at cost, net of impairment losses. Impairments are recorded whenever the fair value of the cryptocurrency decreases below its carrying value at any time during the period from acquisition. After an impairment loss is recognized, the adjusted carrying amount of the cryptocurrency becomes its new accounting basis and this new adjusted cost basis will not be adjusted upward for any subsequent increase in fair value.
The carrying values of cryptocurrencies were the following at June 30, 2023 and December 31, 2022 (in thousands):

 
Cryptocurrency
  
As of
June 30, 2023
 
  
As of
December 31, 2022
 
BTC
    $ 810      $ 523  
ETH
      1        9  
LTC
      —          8  
    
 
 
     
 
 
  
     $ 811      $ 540  
    
 
 
     
 
 
  
 
The following table presents additional information about the adjusted cost basis of cryptocurrencies (in thousands):

 
 
  
BTC
 
  
ETH
 
  
LTC
 
  
Total
 
Beginning balance—January 1, 2023
   
$
523
 
   
$
9
 
   
$
 8
 
   
$
540
 
Purchase or receipts of cryptocurrency
      127,530        4        3        127,537  
Cost of cryptocurrencies sold or distributed
      (125,465 )       (12 )       (11 )       (125,488 ) 
Impairment of cryptocurrencies
      (2,187 )       —          —          (2,187 ) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance—March 31, 2023
    $ 401      $ 1      $ —        $ 402  
    
 
 
     
 
 
     
 
 
     
 
 
  
Purchase or receipts of cryptocurrency
   
 
153,351
 
   
 
—
 
   
 
—  
 
   
 
153,351
 
Cost of cryptocurrencies sold or distributed
   
 
(150,552
 )
 
   
 
—
 
   
 
—  
 
   
 
(150,552
 )
 
Impairment of cryptocurrencies
   
 
(2,390
 )
 
   
 
—  
 
   
 
—  
 
   
 
(2,390
 )
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Balance—June 30, 2023
   
$
810
 
   
$
1
 
   
$
—  
 
   
$
811
 
    
 
 
     
 
 
     
 
 
     
 
 
  
 
 
  
BTC
 
  
ETH
 
  
LTC
 
  
Total
 
Beginning balance—January 1, 2022
   
$
563
 
   
$
5,989
 
   
$
6
 
   
$
6,558
 
Purchase or receipts of cryptocurrency
   
 
128,388
 
   
 
206
 
   
 
847
 
   
 
129,441
 
Cost of cryptocurrencies sold or distributed
   
 
(126,275
 )
 
   
 
(2,770
 )
 
   
 
(836
 )
 
   
 
(129,881
 )
 
Impairment of cryptocurrencies
   
 
(1,861
 )
 
   
 
(1,358
 )
 
   
 
(7
 )
 
   
 
(3,226
 )
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance—March 31, 2022
    $ 815      $ 2,067      $ 10      $ 2,892  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase or receipts of cryptocurrency
      134,378        11        994        135,383  
Cost of cryptocurrencies sold or distributed
      (132,542 )       (2,073 )       (999 )       (135,614 ) 
Impairment of cryptocurrencies
      (2,075 )       —          —          (2,075 ) 
    
 
 
     
 
 
     
 
 
     
 
 
  
Balance—June 30, 2022
   
$
576
 
   
$
5
 
   
$
5
 
   
$
586
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Purchases of cryptocurrencies represent the cash paid by the Company to purchase cryptocurrencies on various exchanges and from liquidity providers and related transaction costs to acquire the cryptocurrencies, as well as any receipts of cryptocurrency sold to the Company by customers to the Company at the BTM kiosks and paid to the Company for software services revenue. Costs of cryptocurrencies sold or distributed represents the cost basis of purchased cryptocurrencies, net of impairment costs recorded through the date of disposition. The Company may be extended short-term credits from various exchanges and liquidity providers to purchase Bitcoin. The trade credits are due and payable in cash within days after they are extended. As of June 30, 2023, and December 31, 2022, the Company had $
5.1 million and $1.7 million outstanding within “Accrued Expenses” on the Consolidated Balance Sheets, respectively.