LEASES
As of December 31, 2025, the Company had operating and finance leases primarily for office space, mining facilities and land in the United States.

The Company is party to an arrangement 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 and has elected not to separate lease and non-lease components. Payment for these two operating leases is entirely variable and based on usage of electricity and expensed as incurred.
The following table presents the assets and liabilities related to the Company’s operating and finance leases as of December 31, 2025 and 2024:

(in thousands)
December 31, 2025
December 31, 2024
Assets
Balance Sheet Classification
Operating lease ROU assets
Operating lease right-of-use assets$32,324 $16,874 
Finance lease ROU assets
Property and equipment, net2,847 2,877 
Total ROU assets
$35,171 $19,751 
Liabilities
Current portion:
Operating lease liabilities
Operating lease liabilities, current portion$1,722 $239 
Finance lease liability
Finance lease liability, current portion173 168 
Long-term portion:
Operating lease liabilitiesOperating lease liabilities, net of current portion39,714 22,977 
Finance lease liabilityFinance lease liability, net of current portion3,817 3,709 
Total lease liabilities$45,426 $27,093 

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

Year Ended December 31,
(in thousands)202520242023
Lease costs:
Operating lease cost$5,322 $838 $315 
Finance lease cost:
Amortization of ROU asset (1)
30 22 — 
Interest on lease liabilities280 — — 
Short-term lease rent expense390 59 36 
Variable lease cost104,802 107,420 80,108 
Total rent expense$110,824 $108,339 $80,459 

(1) Amortization of finance lease ROU asset is included in “Depreciation and amortization” on the Consolidated Statements of Operations.
Additional information regarding the Company’s leasing activities is as follows:

Year Ended December 31,
20252024
2023
Operating cash flows from operating leases$2,769$629$(32)
Operating cash flows from finance lease280
Financing cash flows from finance lease168163$
Weighted-average remaining lease term (in years):
Operating leases19.49.13.2
Finance lease95.396.3
Weighted-average discount rate:
Operating leases7.2 %7.0 %5.0 %
Finance lease7.2 %7.2 %— %

The following table presents the Company’s future minimum lease payments as of December 31, 2025:
 
(in thousands)
YearOperating LeasesFinance Lease
2026$4,525 $173 
20276,170 178 
20285,948 183 
20295,810 189 
20305,765 194 
Thereafter46,866 88,714 
Total75,084 89,631 
Less: Imputed interest (33,648)(85,641)
Present value of lease liability
$41,436 $3,990 

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 3, 2025
2023Feb 28, 2024
2022Mar 16, 2023

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.