v3.26.1
LEASES
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
LEASES
6. LEASES
Lessee Accounting
The Company leases data center facilities, land, office space, and computer and networking equipment. The following table presents the components of operating and finance leases at the dates indicated (in thousands):
Financial statement line itemJune 30, 2026December 31, 2025
Assets:
Operating lease right-of-use assetsOperating lease right-of-use assets$114,199 $108,484 
Finance lease right-of-use assetsOther noncurrent assets$1,652 $1,843 
Liabilities:
Operating lease liabilities, current portion
Other current liabilities
$13,456 $12,343 
Operating lease liabilities, net of current portion
Other noncurrent liabilities
$95,043 $89,011 
Finance lease liabilities, net of current portionOther noncurrent liabilities$876 $844 
The following table presents the components of lease expense for the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
Financial statement line item2026202520262025
Operating lease expense
Cost of colocation services
$3,863 $3,402 $7,649 $6,809 
Operating lease expense
Cost of digital asset self-mining
113 76 215 160 
Operating lease expense
Cost of digital asset hosted mining services
15 8 27 14 
Operating lease expenseSelling, general and administrative205 1,218 368 2,425 
Short-term lease expenseCost of digital asset self-mining100 339 242 625 
Variable lease expense
Cost of colocation services
447 304 832 573 
Finance lease expense:
Amortization of right-of-use assets
Cost of digital asset self-mining
95 170 191 396 
Interest on lease liabilitiesInterest expense (income), net16 30 32 79 
Total finance lease expense111 200 223 475 
Total lease expense$4,854 $5,547 $9,556 $11,081 
The following table presents information relating to the lease term and discount rate at the dates indicated:
June 30, 2026June 30, 2025
Weighted Average Remaining Lease Term (Years)
Operating leases7.18.1
Finance leases4.40.2
Weighted Average Discount Rate
Operating leases8.3 %8.5 %
Finance leases7.4 %12.7 %
The following table presents additional information relating to operating and finance leases for the periods indicated (in thousands):
Six Months Ended June 30,
2026
2025
Lease Payments
Operating cash flows from operating leases$10,185 $7,547 
Operating cash flows from finance leases$5 $71 
Financing cash flows from finance leases$1,095 $1,125 
Supplemental Non-cash Information
Operating lease right-of-use assets obtained in exchange for lease obligations$13,440 $109 
The following table presents the Company’s future minimum payments under noncancelable operating and finance leases having terms in excess of one year as of June 30, 2026 (in thousands):
Operating Leases
Finance Leases
Remaining 2026
$10,354 $— 
202722,957 — 
202823,568 257 
202923,309 440 
203023,470 404 
Thereafter40,809 — 
Total lease payments144,467 1,101 
Less: imputed interest35,968 225 
Total$108,499 $876 
Lessor Accounting
The Company generates 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 of the Form 10-K for the fiscal year ended December 31, 2025. Lease revenue is included within Colocation revenue in the condensed consolidated statements of operations. The carrying value of property, plant and equipment subject to operating leases with customers is presented in Note 4 — Property, Plant, and Equipment.
The following table presents the components of lease revenue for the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Operating lease revenue
$98,812 $7,010 $158,008 $13,005 
Variable lease revenue
37,857 3,550 56,200 6,128 
Total lease revenue$136,669 $10,560 $214,208 $19,133 
The following table represents future operating lease payments expected to be received as of June 30, 2026 (in thousands):
Operating Leases(1)
Remaining 2026
$132,281 
2027271,468 
2028368,963 
2029527,771 
2030546,112 
Thereafter4,241,072 
Total$6,087,667 
(1)Operating lease payments expected to be received exclude $3.1 billion in total future noncancellable operating lease payments expected to be received for operating leases that have not yet commenced as of June 30, 2026, which have initial lease terms of 12 years from commencement.
LEASES
6. LEASES
Lessee Accounting
The Company leases data center facilities, land, office space, and computer and networking equipment. The following table presents the components of operating and finance leases at the dates indicated (in thousands):
Financial statement line itemJune 30, 2026December 31, 2025
Assets:
Operating lease right-of-use assetsOperating lease right-of-use assets$114,199 $108,484 
Finance lease right-of-use assetsOther noncurrent assets$1,652 $1,843 
Liabilities:
Operating lease liabilities, current portion
Other current liabilities
$13,456 $12,343 
Operating lease liabilities, net of current portion
Other noncurrent liabilities
$95,043 $89,011 
Finance lease liabilities, net of current portionOther noncurrent liabilities$876 $844 
The following table presents the components of lease expense for the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
Financial statement line item2026202520262025
Operating lease expense
Cost of colocation services
$3,863 $3,402 $7,649 $6,809 
Operating lease expense
Cost of digital asset self-mining
113 76 215 160 
Operating lease expense
Cost of digital asset hosted mining services
15 8 27 14 
Operating lease expenseSelling, general and administrative205 1,218 368 2,425 
Short-term lease expenseCost of digital asset self-mining100 339 242 625 
Variable lease expense
Cost of colocation services
447 304 832 573 
Finance lease expense:
Amortization of right-of-use assets
Cost of digital asset self-mining
95 170 191 396 
Interest on lease liabilitiesInterest expense (income), net16 30 32 79 
Total finance lease expense111 200 223 475 
Total lease expense$4,854 $5,547 $9,556 $11,081 
The following table presents information relating to the lease term and discount rate at the dates indicated:
June 30, 2026June 30, 2025
Weighted Average Remaining Lease Term (Years)
Operating leases7.18.1
Finance leases4.40.2
Weighted Average Discount Rate
Operating leases8.3 %8.5 %
Finance leases7.4 %12.7 %
The following table presents additional information relating to operating and finance leases for the periods indicated (in thousands):
Six Months Ended June 30,
2026
2025
Lease Payments
Operating cash flows from operating leases$10,185 $7,547 
Operating cash flows from finance leases$5 $71 
Financing cash flows from finance leases$1,095 $1,125 
Supplemental Non-cash Information
Operating lease right-of-use assets obtained in exchange for lease obligations$13,440 $109 
The following table presents the Company’s future minimum payments under noncancelable operating and finance leases having terms in excess of one year as of June 30, 2026 (in thousands):
Operating Leases
Finance Leases
Remaining 2026
$10,354 $— 
202722,957 — 
202823,568 257 
202923,309 440 
203023,470 404 
Thereafter40,809 — 
Total lease payments144,467 1,101 
Less: imputed interest35,968 225 
Total$108,499 $876 
Lessor Accounting
The Company generates 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 of the Form 10-K for the fiscal year ended December 31, 2025. Lease revenue is included within Colocation revenue in the condensed consolidated statements of operations. The carrying value of property, plant and equipment subject to operating leases with customers is presented in Note 4 — Property, Plant, and Equipment.
The following table presents the components of lease revenue for the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Operating lease revenue
$98,812 $7,010 $158,008 $13,005 
Variable lease revenue
37,857 3,550 56,200 6,128 
Total lease revenue$136,669 $10,560 $214,208 $19,133 
The following table represents future operating lease payments expected to be received as of June 30, 2026 (in thousands):
Operating Leases(1)
Remaining 2026
$132,281 
2027271,468 
2028368,963 
2029527,771 
2030546,112 
Thereafter4,241,072 
Total$6,087,667 
(1)Operating lease payments expected to be received exclude $3.1 billion in total future noncancellable operating lease payments expected to be received for operating leases that have not yet commenced as of June 30, 2026, which have initial lease terms of 12 years from commencement.