Note 12. Leases

Operating Leases

The Company enters into colocation and data center leases in the United States for dedicated data center space where the Company keeps its GPU servers and related hardware. The colocation and data center leases provide the Company with minimum amounts of power capacity and costs for overages above the established capacity thresholds are charged to the Company. These overage payments are treated as variable lease payments and are excluded from the measurement of the colocation leases.

During the six months ended June 30, 2026, the Company entered into four colocation leases. Two of these colocation leases were entered into during the first quarter of 2026, included lease terms of 3three and seven years, respectively, and required the Company to make fixed payments totaling $6,260 and $113,835, respectively, on an undiscounted basis. The Company was required to pay $365 and $6,788 in prepayments related to these leases, respectively. Additionally, the seven-year colocation lease required the Company to issue a standby letter of credit in the amount of $6,435 during the fourth quarter of 2025. The remaining two colocation leases were entered into during the second quarter of 2026, included lease terms of 3three years for each and required the Company to make fixed payments totaling $17,617 and $4,378, respectively, on an undiscounted basis. The Company was required to pay $625 in prepayments related to one of these leases.

During the six months ended June 30, 2025, the Company entered into two colocation leases. One of these colocation leases was entered into during the first quarter of 2025 and included a 3three-year lease term which required the Company to make fixed payments totaling $1,756 on an undiscounted basis. The other colocation lease was entered into during the second quarter of 2025 and included a 3three-year lease term which required the Company to make fixed payments totaling $8,317 on an undiscounted basis.

The Company leased office space in Chicago, IL, which had an initial lease term of 12.5 months and automatically extended for additional twelve-month renewal terms unless the Company provided advance notice of its intent to terminate at the end of the then-current lease term. The lease expired in February 2026.

Finance Leases

During the six months ended June 30, 2026, the Company entered into 34 finance lease agreements for GPU servers. 12 of these finance lease agreements were entered into during the first quarter of 2026 which included 30-month lease terms and required the Company to make fixed payments totaling $55,693 on an undiscounted basis. The Company made advance payments totaling $1,948 and $1,860 to secure five of these leases of GPUs during the first quarter of 2026 and fourth quarter of 2025, respectively. The Company made advance payments totaling $9,384 in April 2026 to secure the remaining seven leases of GPUs. 22 of these finance lease agreements were entered into during the second quarter of 2026, included lease terms ranging from 30 to 36 months, and required the Company to make fixed payments totaling $240,190 on an undiscounted basis. The Company made advance payments totaling $26,206 to secure 13 of these leases.

During the six months ended June 30, 2025, the Company entered into nine finance lease agreements for GPU servers that have 30-month lease terms and require the Company to make fixed payments totaling $40,548 on an undiscounted basis. The Company made advance payments totaling $2,314 to secure three of these leases of GPUs during the six months ended June 30, 2025. The Company made advance payments totaling $546 to secure six of these leases of GPUs during the year ended December 31, 2024.

Short-term Leases

In October 2023, the Company entered into a twelve-month lease for dedicated colocation space and related services. The lease was treated as a short-term lease and was not recognized on the interim condensed consolidated balance sheets. The Company paid fees of $242 during the three months ended March 31, 2025. This lease was terminated in February 2025.

The following table presents the maturities of the Company’s operating and finance lease liabilities as of June 30, 2026:

Schedule of Future Minimum Lease Payments

In April and May 2026, the Company entered into two colocation leases that had not yet commenced as of June 30, 2026 and are not included in the disclosures above. Both leases have seven-year lease terms, are expected to commence in the third quarter of 2026, and require the Company to make fixed payments totaling $42,788 and $184,042, respectively, on an undiscounted basis. Additionally, the lease entered into in May 2026 required the Company to issue a standby letter of credit in the amount of $12,960 during the second quarter of 2026.

Lessor Accounting

The Company generates income by renting access to its Nvidia GPUs through its proprietary platform, third-party AI platforms, and GPU brokers, under rental agreements. The Company’s agreements with lessees are categorized as either having terms greater than one month or having month-to-month terms. For the Company’s agreements greater than one month, lessees are required to make up-front payments at the inception of the agreement. Lessees in month-to-month agreements are required to make payments in arrears after the provision of services has been rendered. For three and six months ended June 30, 2026, lease income generated for operating leases was $30,417 and $41,032, respectively. For the three and six months ended June 30, 2025, lease income generated for operating leases was $7,094 and $11,038, respectively.