Leases

12 Months Ended

Dec. 31, 2025

NOTE 18: LEASES

The components of lease expense are as follows:

	Year ended December 31,
	2025		2024		2023
Finance lease expense
Amortization of ROU assets		829		1,170		1,381
Interest on lease obligations		93		88		217
Operating lease expense		4,202		2,925		2,162
Amortization of initial direct costs		278		139		—
		5,402		4,322		3,760

Based on the nature of the ROU asset, amortization of finance ROU assets, operating lease expense, short-term lease expense, and variable lease expense are recognized in either cost of revenues or general and administrative expenses and interest on finance lease obligations is recognized in other income (expense) on the consolidated statement of operations. Refer to Note 25 for more details.

Other information related to leases is as follows:

	As of December 31,			As of December 31,
	2025			2024
ROU assets
Operating lease ROU assets		11,103			21,299
Finance lease ROU assets		2,127			2,281
Total ROU assets		13,230			23,580

Current portion of lease liabilities
Operating lease liabilities		1,490			1,959
Finance lease liabilities		235			130
Long-term portion of lease liabilities
Operating lease liabilities		10,606			17,440
Finance lease liabilities		1,978			2,310
Total lease liabilities		14,309			21,839

Weighted-average remaining lease term (in years)
Operating lease		6 years			7 years
Finance lease		5 years			5 years

Weighted-average discount rate
Operating lease		9	%		9	%
Finance lease		7	%		8	%

Cash flow information related to leases is as follows:

	Year ended December 31,
	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases		3,336		2,456		2,284
Operating cash flows used in finance leases		114		131		283
Financing cash flows used in finance leases		820		1,079		2,458

ROU assets obtained in exchange for lease liabilities:
Operating leases		3,276		8,960		986
Finance leases		603		968		567

Future minimum lease payments required under non-cancellable leases as of December 31, 2025, were as follows:

	Operating leases			Finance leases			Total
2026		2,728			631			3,359
2027		3,182			576			3,758
2028		3,274			495			3,769
2029		3,222			451			3,673
2030 and thereafter		12,131			1,206			13,337
Total minimum lease payments		24,537			3,359			27,896
Less: payments related to leases not yet commenced		(7,848	)		—			(7,848	)
Less: imputed interest		(4,593	)		(1,146	)		(5,739	)
Total lease liabilities		12,096			2,213			14,309

Sharon lease agreement

On August 27, 2024, the Company entered into an agreement to lease a site in Sharon, Pennsylvania, United States, providing the Company immediate capacity of 12 MW of electricity and potential for up to an additional 98 MW for a total 110 MW of development capacity by 2026.

Upon signing the lease agreement, the Company issued common shares with a total value of $3,000 as a non-refundable deposit which was capitalized as part of the ROU asset. The initial lease term is five years with options to renew for a total of seventeen years along with an option to purchase the site at fair market value through the lease term or upon a change of control, as defined therein. The lease has variable minimum monthly payments increasing over the term of the lease from $33 to $138, with annual adjustments beginning after the third year. Prior to June 30, 2026, monthly lease payments can fluctuate based on the energized MW. On initial recognition, the Company recognized $11,390 of ROU asset and $8,240 of lease liability with the difference of $3,000 recognized in share capital as explained above and in Note 20.

In October 2025, the Company acquired the leased property. Refer to Note 4 for more details.

Magog lease agreement

In November 2024, the Company agreed to terminate its lease for the Bitcoin data center in Magog, Québec, Canada, and forfeit its fixed price purchase option in exchange for $714 (CAD$1,000) from the landlord. Concurrently, the Company signed a new lease with the same party with an initial term of 10 years with monthly payments totaling $17 (CAD$24) which took effect on December 1, 2024 and maintain an option to purchase the site at fair market value for the duration of the lease.

The new lease agreement is considered a lease modification that resulted in the remeasurement of the lease liability by discounting the revised lease payments in addition with a corresponding adjustment made to the ROU asset of $708. The $714 payment from the landlord is considered a lease incentive which reduced the ROU asset carrying amount.