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Cryptocurrencies
 9 Months Ended
Sep. 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 September 30, 2023 and December 31, 2022 (in thousands):

 

Cryptocurrency

 

At
September 30, 2023

 

 

At
December 31, 2022

 

BTC

 

$

794

 

 

$

523

 

ETH

 

 

1

 

 

 

9

 

LTC

 

 

—

 

 

 

8

 

 

$

795

 

 

$

540

 

 

The following tables present 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

 

Purchase or receipts of cryptocurrency

 

 

139,065

 

 

 

—

 

 

 

—

 

 

 

139,065

 

Cost of cryptocurrencies sold or distributed

 

 

(137,288

)

 

 

—

 

 

 

—

 

 

 

(137,288

)

Impairment of cryptocurrencies

 

 

(1,793

)

 

 

—

 

 

 

—

 

 

 

(1,793

)

Balance—September 30, 2023

 

$

794

 

 

$

1

 

 

$

-

 

 

$

795

 

 

 

BTC

 

 

ETH

 

 

LTC

 

 

Total

 

Beginning balance—January 1, 2022

 

$

563

 

 

$

5,988

 

 

$

6

 

 

$

6,557

 

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

 

 

$

2,066

 

 

$

10

 

 

$

2,891

 

Purchase or receipts of cryptocurrency

 

 

134,378

 

 

 

12

 

 

 

993

 

 

 

135,383

 

Cost of cryptocurrencies sold or distributed

 

 

(132,543

)

 

 

(2,073

)

 

 

(999

)

 

 

(135,615

)

Impairment of cryptocurrencies

 

 

(2,075

)

 

 

—

 

 

 

—

 

 

 

(2,075

)

Balance—June 30, 2022

 

$

575

 

 

$

5

 

 

$

4

 

 

$

584

 

Purchase or receipts of cryptocurrency

 

 

140,015

 

 

 

387

 

 

 

638

 

 

 

141,040

 

Cost of cryptocurrencies sold or distributed

 

 

(138,261

)

 

 

(379

)

 

 

(632

)

 

 

(139,272

)

Impairment of cryptocurrencies

 

 

(1,670

)

 

 

(3

)

 

 

(5

)

 

 

(1,678

)

Balance—September 30, 2022

 

$

659

 

 

$

10

 

 

$

5

 

 

$

674

 

 

Purchases or receipts of cryptocurrency consists of: (a) cash paid by the Company to purchase cryptocurrencies on various exchanges and from liquidity providers and related transaction costs to acquire the cryptocurrencies, (b) receipts of cryptocurrency sold to the Company by customers at the BTM kiosks, and (c) receipts of cryptocurrency received by the Company as consideration for company website and software services revenue. Costs of cryptocurrencies sold or distributed represents the cost basis of cryptocurrencies sold to customers or payments made in 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 September 30, 2023 and December 31, 2022, the Company had $6.1 million and $1.7 million outstanding within “Accrued Expenses” on the Consolidated Balance Sheets, respectively.