v3.25.3
LEASES
 9 Months Ended
Sep. 30, 2025
Leases [Abstract]  
LEASES
5. LEASES
Lessee Accounting
The components of operating and finance leases are presented on the Company’s Condensed Consolidated Balance Sheets as follows (in thousands):
Financial statement line itemSeptember 30, 2025December 31, 2024
Assets:
Operating lease right-of-use assetsOperating lease right-of-use assets$107,784 114,472 
Finance lease right-of-use assetsProperty, plant and equipment, net$— 5,873 
Liabilities:
Operating lease liabilities,
   current portion
Other current liabilities
$11,353 9,974 
Operating lease liabilities, net
   of current portion
Other noncurrent liabilities
$90,869 97,843 
Finance lease liabilities, current portionOther current liabilities$— 1,669 
The components of lease expense were as follows (in thousands):
Three Months Ended September 30,
Financial statement line item20252024
Operating lease expenseCost of Colocation services$3,412 $4,833 
Operating lease expense
Cost of digital asset self-mining
79 106 
Operating lease expense
Cost of digital asset hosted mining services
11 22 
Operating lease expense
Selling, general and administrative expenses
1,297 (1,133)
Short-term lease expense
Cost of digital asset self-mining
318 68 
Variable lease expense
Cost of Colocation services304 — 
Finance lease expense:
Amortization of right-of-use assets
Cost of digital asset self-mining
101 231 
Interest on lease liabilitiesInterest expense, net11 91 
Total finance lease expense112 322 
Total lease expense$5,533 $4,218 
Nine Months Ended September 30,
Financial statement line item20252024
Operating lease expenseCost of Colocation services$10,221 $7,930 
Operating lease expense
Cost of digital asset self-mining
240 302 
Operating lease expense
Cost of digital asset hosted mining services
25 78 
Operating lease expense
Selling, general and administrative expenses
3,722 1,025 
Short-term lease expense
Cost of digital asset self-mining
943 262 
Variable lease expense
Cost of Colocation services877 — 
Finance lease expense:
Amortization of right-of-use assets
Cost of digital asset self-mining
497 880 
Interest on lease liabilitiesInterest expense, net90 1,132 
Total finance lease expense587 2,012 
Total lease expense$16,615 $11,609 
Information relating to the lease term and discount rate is as follows:
September 30, 2025September 30, 2024
Weighted Average Remaining Lease Term (Years)
Operating leases7.86.9
Finance leases0.01.0
Weighted Average Discount Rate
Operating leases8.5 %9.3 %
Finance leases— %12.5 %
Information relating to lease payments is as follows (in thousands):

Nine Months Ended September 30,
20252024
Lease Payments
Operating cash flows from operating leases$12,512 $5,414 
Operating cash flows from finance leases$82 $1,819 
Financing cash flows from finance leases$1,672 $5,328 
Supplemental Noncash Information
Operating lease right-of-use assets obtained in exchange for lease obligations$2,154 $70,690 
Decrease in operating right-of-use assets due to lease modification
$(593)$— 

The Company’s minimum payments under noncancelable operating leases having initial terms and bargain renewal periods in excess of one year are as follows at September 30, 2025, and thereafter (in thousands):
Operating Leases
Remaining 2025
$4,750 
202619,631 
202720,064 
202820,405 
202920,754 
Thereafter54,318 
Total lease payments139,922 
Less: imputed interest37,700 
Total$102,222 
Lessor Accounting
We generate revenue by leasing property to a customer under licensing agreements. The manner in which we recognize these transactions in our financial statements is described in Note 2 — Summary of Significant Accounting Policies, Revenue Recognition — Colocation Revenue.
The components of lease revenue were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Lease Revenue
Operating lease revenue
$9,848 $7,806 $22,853 $11,625 
Variable lease revenue
5,103 2,532 11,231 4,232 
Total lease revenue$14,951 $10,338 $34,084 $15,857 
The following table represents the maturity analysis of commenced minimum operating lease payments expected to be received at September 30, 2025, and thereafter (in thousands):
Operating Leases(1)
Remaining 2025
$10,203 
202638,520 
202739,748 
202854,614 
202958,476 
Thereafter317,899 
Total$519,460 
(1) Operating lease payments expected to be received excludes $9.55 billion in total future noncancellable minimum lease payments for operating leases that have not yet commenced at September 30, 2025, which have initial lease terms of 12 years from commencement.
LEASES
5. LEASES
Lessee Accounting
The components of operating and finance leases are presented on the Company’s Condensed Consolidated Balance Sheets as follows (in thousands):
Financial statement line itemSeptember 30, 2025December 31, 2024
Assets:
Operating lease right-of-use assetsOperating lease right-of-use assets$107,784 114,472 
Finance lease right-of-use assetsProperty, plant and equipment, net$— 5,873 
Liabilities:
Operating lease liabilities,
   current portion
Other current liabilities
$11,353 9,974 
Operating lease liabilities, net
   of current portion
Other noncurrent liabilities
$90,869 97,843 
Finance lease liabilities, current portionOther current liabilities$— 1,669 
The components of lease expense were as follows (in thousands):
Three Months Ended September 30,
Financial statement line item20252024
Operating lease expenseCost of Colocation services$3,412 $4,833 
Operating lease expense
Cost of digital asset self-mining
79 106 
Operating lease expense
Cost of digital asset hosted mining services
11 22 
Operating lease expense
Selling, general and administrative expenses
1,297 (1,133)
Short-term lease expense
Cost of digital asset self-mining
318 68 
Variable lease expense
Cost of Colocation services304 — 
Finance lease expense:
Amortization of right-of-use assets
Cost of digital asset self-mining
101 231 
Interest on lease liabilitiesInterest expense, net11 91 
Total finance lease expense112 322 
Total lease expense$5,533 $4,218 
Nine Months Ended September 30,
Financial statement line item20252024
Operating lease expenseCost of Colocation services$10,221 $7,930 
Operating lease expense
Cost of digital asset self-mining
240 302 
Operating lease expense
Cost of digital asset hosted mining services
25 78 
Operating lease expense
Selling, general and administrative expenses
3,722 1,025 
Short-term lease expense
Cost of digital asset self-mining
943 262 
Variable lease expense
Cost of Colocation services877 — 
Finance lease expense:
Amortization of right-of-use assets
Cost of digital asset self-mining
497 880 
Interest on lease liabilitiesInterest expense, net90 1,132 
Total finance lease expense587 2,012 
Total lease expense$16,615 $11,609 
Information relating to the lease term and discount rate is as follows:
September 30, 2025September 30, 2024
Weighted Average Remaining Lease Term (Years)
Operating leases7.86.9
Finance leases0.01.0
Weighted Average Discount Rate
Operating leases8.5 %9.3 %
Finance leases— %12.5 %
Information relating to lease payments is as follows (in thousands):

Nine Months Ended September 30,
20252024
Lease Payments
Operating cash flows from operating leases$12,512 $5,414 
Operating cash flows from finance leases$82 $1,819 
Financing cash flows from finance leases$1,672 $5,328 
Supplemental Noncash Information
Operating lease right-of-use assets obtained in exchange for lease obligations$2,154 $70,690 
Decrease in operating right-of-use assets due to lease modification
$(593)$— 

The Company’s minimum payments under noncancelable operating leases having initial terms and bargain renewal periods in excess of one year are as follows at September 30, 2025, and thereafter (in thousands):
Operating Leases
Remaining 2025
$4,750 
202619,631 
202720,064 
202820,405 
202920,754 
Thereafter54,318 
Total lease payments139,922 
Less: imputed interest37,700 
Total$102,222 
Lessor Accounting
We generate revenue by leasing property to a customer under licensing agreements. The manner in which we recognize these transactions in our financial statements is described in Note 2 — Summary of Significant Accounting Policies, Revenue Recognition — Colocation Revenue.
The components of lease revenue were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Lease Revenue
Operating lease revenue
$9,848 $7,806 $22,853 $11,625 
Variable lease revenue
5,103 2,532 11,231 4,232 
Total lease revenue$14,951 $10,338 $34,084 $15,857 
The following table represents the maturity analysis of commenced minimum operating lease payments expected to be received at September 30, 2025, and thereafter (in thousands):
Operating Leases(1)
Remaining 2025
$10,203 
202638,520 
202739,748 
202854,614 
202958,476 
Thereafter317,899 
Total$519,460 
(1) Operating lease payments expected to be received excludes $9.55 billion in total future noncancellable minimum lease payments for operating leases that have not yet commenced at September 30, 2025, which have initial lease terms of 12 years from commencement.