v3.25.2
Fair Value Measurements (Q2)
 6 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Fair Value Disclosures [Abstract]    
Fair Value Measurements
3. Fair Value Measurements

The Company measures certain financial assets and liabilities at fair value on a recurring basis in accordance with ASC 820, Fair Value Measurement, which establishes a framework for measuring fair value and a fair value hierarchy based on the observability of inputs. This hierarchy prioritizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value as follows:

Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs that are supported by little or no market activity, which require management judgment or estimation.

The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis within the fair value hierarchy as of the end of each reporting period (in thousands):

 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value
Hierarchy
 
 
June 30,
2025
 
 
December 31,
2024
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
 
 
 
Money market funds
 
 
Level 1
 
 
$55,508
 
 
$2,411
Restricted cash and cash equivalents, current
 
 
 
 
 
 
 
 
 
Money market funds
 
 
Level 1
 
 
518,199
 
 
24,185
Restricted cash and cash equivalents, non-current
 
 
 
 
 
 
 
 
 
Money market funds
 
 
Level 1
 
 
—
 
 
56,250
Restricted marketable securities, non-current
 
 
 
 
 
 
 
 
 
Certificates of deposit
 
 
Level 2
 
 
—
 
 
29,308
Prepaid expenses and other current assets
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts not designated as accounting hedges
 
 
Level 2
 
 
2,279
 
 
—
Other non-current assets
 
 
 
 
 
 
 
 
 
Power purchase agreements
 
 
Level 3
 
 
3,444
 
 
2,562
Total financial assets
 
 
 
 
 
$579,430
 
 
$114,716
Financial liabilities:
 
 
 
 
 
 
 
 
 
Derivative and warrant liabilities
 
 
 
 
 
 
 
 
 
Interest rate swaps designated as accounting hedges
 
 
Level 2
 
 
$271
 
 
$—
Warrant liabilities
 
 
Level 3
 
 
—
 
 
199,645
Power purchase agreements
 
 
Level 3
 
 
427
 
 
444
Total financial liabilities
 
 
 
 
 
$698
 
 
$200,089
 
 
 
 
 
 
 
 
 
 

The Company carries the 2030 Senior Notes (as defined in Note 10—Debt) at its amortized cost basis and presents the fair value for disclosure purposes only. As of June 30, 2025, the fair value of the 2030 Senior Notes was $2.0 billion. The fair value of the 2030 Senior Notes, which are classified as Level 2 financial instruments, was determined based on the quoted prices of the 2030 Senior Notes in an over-the-counter market on the last trading day of the reporting period. Refer to Note 10 — Debt for additional information.

The notional amounts of the Company's outstanding interest rate swaps and foreign exchange forward contracts were as follows (in thousands):

 
 
 
 
 
 
 
 
 
 
June 30,
2025
 
 
December 31,
2024
Derivative instruments designated as accounting hedges
 
 
 
 
 
 
Interest rate swaps
 
 
$50,000
 
 
$—
Derivative instruments not designated as accounting hedges
 
 
 
 
 
 
Foreign exchange forward contracts
 
 
$107,748
 
 
$—
 
 
 
 
 
 
 

Gain (loss) associated with interest rate swaps and foreign exchange forward contracts were as follows (in thousands):

 
 
 
 
 
 
 
Three and Six Months
Ended June 30, 2025
Interest rate swaps designated as accounting hedges
 
 
 
Loss recognized in other comprehensive income (loss), net
 
 
$(271)
Foreign exchange forward contracts not designated as accounting hedges
 
 
 
Gain recognized in other income (expense), net
 
 
$2,279
 
 
 
 

As of June 30, 2025, the amount the Company expects to reclassify out of accumulated other comprehensive income (loss) into earnings within the next twelve months is not material.

The Company’s valuation of the warrant liabilities utilized the Black-Scholes option-pricing model that relied on the following significant inputs:

 
 
 
 
 
 
 
 
 
 
March 21,
2025
 
 
December 31,
2024
Stock price
 
 
$41
 
 
$48
Volatility
 
 
60%
 
 
60%
Risk-free rate
 
 
4%
 
 
4%
Dividend yield
 
 
0%
 
 
0%
 
 
 
 
 
 
 

As discussed in Note 11—Redeemable Convertible Preferred Stock, Redeemable Common Stock, and Stockholders’ Equity (Deficit), the warrant liabilities for the warrants for the Company's Class A common stock were remeasured immediately before modification when modified to equity classified warrants on March 21, 2025.

The following table presents a summary of the changes in the fair value of the Company’s Level 3 financial instruments (in thousands):

 
 
 
 
 
 
 
 
 
 
 
 
 
Power Purchase
Agreements –
Asset
 
 
Warrant
Liabilities
 
 
Power Purchase
Agreements –
Liability
Balance at December 31, 2024
 
 
$2,562
 
 
$199,645
 
 
$444
Adjustment to fair value
 
 
882
 
 
(26,837)
 
 
(17)
Reclassification
 
 
—
 
 
(172,808)
 
 
—
Balance at June 30, 2025
 
 
$3,444
 
 
$—
 
 
$427
 
 
 
 
 
 
 
 
 
 
Notes Receivable

Notes receivable are primarily related to the DCSP Financing Arrangements (as defined in Note 10—Debt) and are reported at their amortized costs basis. As of June 30, 2025 and December 31, 2024, the Company determined that the fair values of its notes receivable approximate the carrying values.
3. Fair Value Measurements

The Company measures certain financial assets and liabilities at fair value on a recurring basis in accordance with ASC 820, Fair Value Measurement, which establishes a framework for measuring fair value and a fair value hierarchy based on the observability of inputs. This hierarchy prioritizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value as follows:

Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs that are supported by little or no market activity, which require management judgment or estimation.

The following tables presents the hierarchy fair value as of the end of each reporting period (in thousands):

 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value
Hierarchy
 
 
December 31,
2023
 
 
December 31,
2024
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
 
 
 
Money market funds
 
 
Level 1
 
 
$87,258
 
 
$2,411
Restricted cash and cash equivalents, current
 
 
 
 
 
 
 
 
 
Money market funds
 
 
Level 1
 
 
42,940
 
 
24,185
Prepaid expenses and other current assets
 
 
 
 
 
 
 
 
 
Available-for-sale marketable securities
 
 
Level 2
 
 
2,368
 
 
—
Restricted cash and cash equivalents, non-current
 
 
 
 
 
 
 
 
 
Money market funds
 
 
Level 1
 
 
206,846
 
 
56,250
Restricted marketable securities, non-current
 
 
 
 
 
 
 
 
 
Certificates of deposit
 
 
Level 2
 
 
171,734
 
 
29,308
Other non-current assets
 
 
 
 
 
 
 
 
 
Power purchase agreements
 
 
Level 3
 
 
1,459
 
 
2,562
Total financial assets
 
 
 
 
 
$512,605
 
 
$114,716
Financial liabilities:
 
 
 
 
 
 
 
 
 
Derivative and warrant liabilities
 
 
 
 
 
 
 
 
 
Bifurcated embedded derivative liabilities
 
 
Level 3
 
 
$386,469
 
 
$—
Warrant liabilities
 
 
Level 3
 
 
70,930
 
 
199,645
Series B tranche liability
 
 
Level 3
 
 
69,648
 
 
—
Power purchase agreements
 
 
Level 3
 
 
—
 
 
444
Total financial liabilities
 
 
 
 
 
$527,047
 
 
$200,089
 
 
 
 
 
 
 
 
 
 

The following tables present information about the Company’s financial assets that are measured at fair value on a recurring basis as of the end of each reporting period (in thousands):

 
 
 
 
 
 
 
December 31, 2023
 
 
 
Adjusted
Cost
 
 
Gross
Unrealized
Gains
 
 
Gross
Unrealized
Losses
 
 
Fair Value
Financial assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
 
 
$87,258
 
 
$—
 
 
$—
 
 
$87,258
Restricted cash and cash equivalents, current
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
 
 
42,940
 
 
—
 
 
—
 
 
42,940
Prepaid expenses and other current assets
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale marketable securities
 
 
2,354
 
 
14
 
 
—
 
 
2,368
Restricted cash and cash equivalents, non-current
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
 
 
206,846
 
 
—
 
 
—
 
 
206,846
Restricted marketable securities, non-current
 
 
 
 
 
 
 
 
 
 
 
 
Certificates of deposit
 
 
171,734
 
 
—
 
 
—
 
 
171,734
Total
 
 
$511,132
 
 
$14
 
 
$—
 
 
$511,146
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2024
 
 
 
Adjusted
Cost
 
 
Gross
Unrealized
Gains
 
 
Gross
Unrealized
Losses
 
 
Fair Value
Financial assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
 
 
$2,411
 
 
$—
 
 
$—
 
 
$2,411
Restricted cash and cash equivalents, current
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
 
 
24,185
 
 
—
 
 
—
 
 
24,185
Restricted cash and cash equivalents, non-current
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
 
 
56,250
 
 
—
 
 
—
 
 
56,250
Restricted marketable securities, non-current
 
 
 
 
 
 
 
 
 
 
 
 
Certificates of deposit
 
 
29,308
 
 
—
 
 
—
 
 
29,308
Total
 
 
$112,154
 
 
$—
 
 
$—
 
 
$112,154
 
 
 
 
 
 
 
 
 
 
 
 
 

The following is a summary of the valuation techniques and key inputs used in the valuation of instruments of Level 3 fair value measurements as of the end of each reporting period.

The Company’s valuation of the warrant liabilities utilized the Black-Scholes option-pricing model that relied on the following significant inputs:

 
 
 
 
 
 
 
 
 
 
December 31,
2023
 
 
December 31,
2024
Stock price
 
 
$18
 
 
$48
Volatility
 
 
55%
 
 
60%
Risk-free rate
 
 
4%
 
 
4%
Dividend yield
 
 
0%
 
 
0%
 
 
 
 
 
 
 

The Company’s valuation of the embedded derivative liabilities utilized the binomial lattice model that relied on the following significant inputs:

 
 
 
 
 
 
 
December 31,
2023
Stock price
 
 
$18
Volatility
 
 
40%
Risk-free rate
 
 
4%
Lattice or Monte Carlo model projection period (years)
 
 
2
 
 
 
 

As discussed in Note 10—Debt, the 2021 Convertible Notes were converted into common stock on September 17, 2024. The following table is a summary of the significant unobservable inputs to value the embedded derivative liability immediately before conversion:

 
 
 
 
 
 
 
September 17,
2024
Stock price
 
 
$44
Discount rate
 
 
12%
 
 
 
 

The Company’s valuation of the Series B tranche liability utilized the Black-Scholes option-pricing model that relied on the following significant inputs:

 
 
 
 
 
 
 
December 31,
2023
Series B stock price
 
 
$21
Volatility
 
 
21%
Risk-free rate
 
 
5%
 
 
 
 

The following table presents a summary of the changes in the fair value of the Company’s Level 3 financial instruments (in thousands):

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Power Purchase
Agreements –
Asset
 
 
Warrant
Liabilities
 
 
Bifurcated
Embedded
Derivative
Liabilities
 
 
Power Purchase
Agreements –
Liability
 
 
Series B
Tranche
Liability
Balance at January 1, 2023
 
 
$—
 
 
$3,887
 
 
$4,901
 
 
$—
 
 
$—
Additions
 
 
1,040
 
 
1,716
 
 
20,829
 
 
—
 
 
10,300
Adjustment to fair value
 
 
419
 
 
68,334
 
 
360,739
 
 
—
 
 
104,879
Settlements
 
 
—
 
 
(3,007)
 
 
—
 
 
—
 
 
(45,531)
Balance at December 31, 2023
 
 
1,459
 
 
70,930
 
 
386,469
 
 
—
 
 
69,648
Additions
 
 
—
 
 
—
 
 
—
 
 
770
 
 
—
Adjustment to fair value
 
 
1,103
 
 
128,715
 
 
627,263
 
 
(326)
 
 
(49)
Settlements
 
 
—
 
 
—
 
 
(1,013,732)
 
 
—
 
 
(69,599)
Balance at December 31, 2024
 
 
$2,562
 
 
$199,645
 
 
$—
 
 
$444
 
 
$—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DCSP Financing Arrangements

As discussed in the Note 10—Debt, the Company has a Note Receivable outstanding as of December 31, 2024, related to the DCSP Financing Arrangements. The Company determined that the fair value of the Note Receivable approximates the carrying value.
Available-For-Sale Marketable Securities

The following table summarizes the estimated fair value of investments in available-for-sale marketable debt securities by effective contractual maturity dates (in thousands):

 
 
 
 
 
 
 
December 31,
2023
Due in one year or less
 
 
$—
Due over one year
 
 
2,368
Total available-for-sale marketable securities
 
 
$2,368
 
 
 
 

For short-term investments with an unrealized loss as of December 31, 2023, the unrealized losses were not due to credit-related factors. As of December 31, 2023, the Company did not intend to sell these short-term investments, and it was more likely than not that the Company would hold these short-term investments until maturity or a recovery of the cost basis. Therefore, no allowance for expected credit losses was recorded as of December 31, 2023. In November 2024, the Company sold all of its available-for-sale marketable debt securities. As a result, the Company reclassified an immaterial amount to other income, net in the consolidated statements of operations that was previously recorded in accumulated other comprehensive income (loss).