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SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION
Contract Liabilities
At time, we receive payments from customers before revenue is recognized, resulting in the recognition of a contract liability presented in the Consolidated Balance Sheets.
Changes in the Contract liability balance for the year ended December 31, 2024 are as follows:
$ in thousandsContract Liabilities
Balance as of December 31, 2023$— 
Revenue recognized—
Deposits received2,339
Balance as of December 31, 2024$2,339 

The following table provides additional details of Prepaid expenses and other assets:
As of December 31,
$ in thousands20242023
Prepaid insurance$1,279 $2,818 
Electric deposits588 — 
Warrant Asset— 477 
Other prepaid expenses750 569 
Prepaid expenses and other assets$2,617 $3,864 

The Company had the following noncash investing and financing activities:
For the year ended December 31,
$ in thousands20242023
Cumulative-effect adjustment due to the adoption of ASU 2023-08$22 $— 
Property and equipment purchases in accounts payable108813
Common stock issued for amendment fee to lender—1,000
Subscription receivable in exchange for issuance of common stock—698
Exchange of assets for reduction in debt—71,755
Exchange of coupons for reduction in debt—1,152
Exchange of equipment deposits for reduction in debt—7,381
Accrued interest added to debt principal—1,212
Common stock issued in exchange for equity interest—869
Warrant issued in exchange for warrant asset—477
Common stock issued in exchange for reduction in debt1,616—
Right-of-use asset obtained in exchange for operating lease liability156—
The following table provides supplemental cash flow information for cash paid for interest:
For the Year Ended December 31,
$ in thousands20242023
Cash paid for interest$6,153 $8,140 
Under the contract with its hosting provider, the Company was required to maintain cash in a restricted account sufficient to cover earned but unpaid hosting services. At December 31, 2023, this account had $1.2 million of cash designated for payment of such services. During 2024, the Company terminated the contract with the hosting provider. Therefore, the Company had no restricted cash at December 31, 2024.
In January 2024, the Company entered into a five-year capacity lease agreement, which provides the Company with 7.5 MW of self-mining capacity. The Company began mining in April 2024. During the year ended December 31, 2024, the Company recognized $2.8 million of variable lease costs in connection with the capacity lease agreement, which is included within Cost of revenue - cryptocurrency mining (exclusive of depreciation) in the consolidated statements of operations and comprehensive loss.
In June 2024, the Company entered into an operating lease, which has a term of five years. The Company recorded a right-of-use asset and lease liability of $0.2 million, which are included in Other long-term assets and Other long-term liabilities, respectively, upon commencement in August 2024.