Cost of Revenue

9 Months Ended

Sep. 30, 2024

Cost of Goods and Service, Excluding Depreciation, Depletion, and Amortization [Abstract]

(7) Cost of Revenue (Excluding Depreciation and Amortization)

The following table presents cost of revenue (excluding depreciation and amortization) by category (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cryptocurrency expenses	$	97,555	$	138,828	$	327,778	$	419,682
Floorspace lease expenses		10,007		8,489		27,663		26,270
Kiosk operations expenses		5,291		5,228		15,407		15,135
Total Cost of Revenue (excluding depreciation and amortization reported separately)	$	112,853	$	152,545	$	370,848	$	461,087

The following table presents the components of cryptocurrency expenses (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cost of Cryptocurrency (1) - BTM Kiosk	$	97,425	$	138,551	$	326,734	$	418,425
Cost of Cryptocurrency (1) - BDCheckout		109		234		448		749
Software Processing Fees		4		8		49		267
Exchange Fees		—		1		—		21
Mining Fees		15		30		540		207
Software Processing Fee - BDCheckout		2		4		7		13
Total cryptocurrency expenses	$	97,555	$	138,828	$	327,778	$	419,682

(1)

Cost of Cryptocurrency includes impairment losses recognized on cryptocurrencies net of any gains recognized from sales of cryptocurrencies on an exchange. Impairment of $2.5 million and $1.8 million were offset by no gains from the sale of cryptocurrencies on exchange for the three months ended September 30, 2024 and 2023. Impairment of $6.6 million and $6.4 million were offset by gains from the sale of cryptocurrencies on exchange of $0.0 million and $0.1 million for the nine months ended September 30, 2024 and 2023.

The following table reconciles amounts excluded from the cost of revenue (excluding depreciation and amortization) caption in the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income included in total depreciation and amortization expense in the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income for the period presented (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Depreciation of owned BTM kiosks	$	970	$	919	$	3,505	$	1,794
Depreciation of leased BTM kiosks		880		1,862		3,469		6,375
Amortization of intangible assets		383		382		1,116		1,134
Total depreciation and amortization excluded from cost of revenue	$	2,233	$	3,163	$	8,090	$	9,303
Other depreciation and amortization included in operating expenses		12		97		94		251
Total depreciation and amortization	$	2,245	$	3,260	$	8,184	$	9,554