LEASES

3 Months Ended

Mar. 31, 2026

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 item	March 31, 2026	December 31, 2025
Assets:
Operating lease right-of-use assets	Operating lease right-of-use assets	$105,986	$108,484
Finance lease right-of-use assets	Other noncurrent assets	$1,748	$1,843
Liabilities:
Operating lease liabilities, current portion	Other current liabilities	$12,873	$12,343
Operating lease liabilities, net of current portion	Other noncurrent liabilities	$86,181	$89,011
Finance lease liabilities, current portion	Other current liabilities	$—	$—
Finance lease liabilities, net of current portion	Other noncurrent liabilities	$860	$844

The components of lease expense were as follows (in thousands):


		Three Months Ended March 31,
	Financial statement line item	2026	2025
Operating lease expense	Cost of colocation services	$3,786	$3,407
Operating lease expense	Cost of digital asset self-mining	102	85
Operating lease expense	Cost of digital asset hosted mining services	12	5
Operating lease expense	Selling, general and administrative	163	1,207
Short-term lease expense	Cost of digital asset self-mining	142	286
Variable lease expense	Cost of colocation services	385	269
Finance lease expense:
Amortization of right-of-use assets	Cost of digital asset self-mining	95	226
Interest on lease liabilities	Interest expense, net	16	49
Total finance lease expense		111	275
Total lease expense		$4,701	$5,534

Information relating to the lease term and discount rate is as follows:


	March 31, 2026	March 31, 2025
Weighted Average Remaining Lease Term (Years)
Operating leases	7.3	8.3
Finance leases	4.7	0.5
Weighted Average Discount Rate
Operating leases	8.5%	8.5%
Finance leases	7.4%	12.6%

Information relating to lease payments is as follows (in thousands):


	Three Months Ended March 31,
	2026	2025
Lease Payments
Operating cash flows from operating leases	$5,058	$3,052
Operating cash flows from finance leases	$5	$40
Financing cash flows from finance leases	$1,095	$509

Supplemental Noncash Information

Operating lease right-of-use assets obtained in exchange for lease obligations	$1,988	$—
Decrease in operating right-of-use assets due to lease modification	$—	$(593)
Decrease in operating right-of-use assets due to termination	$(1,318)	$—

The Company’s minimum payments under noncancelable operating and finance leases having terms in excess of one year are as

follows at March 31, 2026, and thereafter (in thousands):


	Operating Leases	Finance Leases
Remaining 2026	$15,418	$—
2027	20,926	—
2028	21,215	257
2029	20,938	440
2030	21,079	403
Thereafter	33,239	—
Total lease payments	132,815	1,100
Less: imputed interest	33,761	240
Total	$99,054	$860

Lessor Accounting

We generate revenue by leasing property to a customer under licensing agreements. The manner in which the Company

recognizes these transactions in its financial statements is described in Note 2 — Summary of Significant Accounting Policies,

Revenue Recognition — Colocation Segment.

The components of lease revenue were as follows (in thousands):


	Three Months Ended March 31,
	2026	2025
Lease Revenue
Operating lease revenue	$59,196	$5,995
Variable lease revenue	10,219	2,578
Total lease revenue	$69,415	$8,573

The following table represents the maturity analysis of operating lease payments expected to be received at March 31, 2026,

and thereafter (in thousands):


	Operating Leases1
Remaining 2026	$111,933
2027	153,848
2028	231,487
2029	302,930
2030	313,402
Thereafter	2,277,488
Total	$3,391,088

1 Operating lease payments expected to be received exclude $5.8 billion in total future noncancellable operating lease payments expected to be received for operating

leases that have not yet commenced as of March 31, 2026, which have initial lease terms of 12 years from commencement.

LEASES