The Company accounts for its 49% equity ownership in each of Alborz LLC, Bear LLC and Chief Mountain LLC (the “Data Center LLCs”) using the equity method of accounting. The Company’s joint venture partner holds the remaining equity in each Data Center LLC entity.

During fiscal year 2022, the Company contributed miners and mining equipment to the Data Center LLCs. The contributed miners had a fair value that was below the cost paid by the Company to obtain them. As such, the Company recognized a loss at the time of the contributions, resulting in basis differences of the miners between the Company and the Data Center LLCs, which recorded the contributions of equipment from the Company at historical cost. The Company accretes these

basis differences over the life of the miners and records the accretion amount for each reporting period within Equity in losses of equity investees on its statements of operations. As of June 30, 2025, the Company had remaining basis differences totaling approximately $7.1 million that have not yet been accreted.

Activity in the Company’s investments in equity investees during the six months ended June 30, 2025, and 2024, consisted of the following (in thousands):


	For the Six Months Ended June 30,
	2025		2024
Opening balance	$	53,908	$	35,258
Cost of contributed mining equipment and other capital contributions	12,842		20,437

Accretion of basis differences related to miner contributions	3,199		3,342


Bitcoin received from equity investees	(13,857)		(5,907)
Equity in net losses of equity investees	(10,191)		(3,181)
Ending Balance	$	45,901	$	49,949