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Cryptocurrencies
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Cryptocurrencies

(12) Cryptocurrencies

Cryptocurrency transactions

Cryptocurrencies, including those allocated to the Company's treasury strategy, are accounted for as indefinite-lived intangible assets and are recognized at cost, net of impairment losses. Impairments are recorded whenever the fair value of the cryptocurrency decreases below its carrying value at any time during the period from acquisition. After an impairment loss is recognized, the adjusted carrying amount of the cryptocurrency becomes its new accounting basis and this new adjusted cost basis will not be adjusted upward for any subsequent increase in fair value.

 

The following tables present additional information about the adjusted cost basis of cryptocurrencies, including those allocated to the Company's treasury strategy, (in thousands):

 

 

BTC

 

 

ETH

 

 

Total

 

Beginning balance—January 1, 2024

 

$

711

 

 

$

1

 

 

$

712

 

Purchase or receipts of cryptocurrency

 

 

108,094

 

 

 

—

 

 

 

108,094

 

Cost of cryptocurrencies sold or distributed

 

 

(106,303

)

 

 

—

 

 

 

(106,303

)

Impairment of cryptocurrencies

 

 

(2,062

)

 

 

—

 

 

 

(2,062

)

Balance—March 31, 2024

 

$

440

 

 

$

1

 

 

$

441

 

Purchase or receipts of cryptocurrency

 

 

121,874

 

 

 

—

 

 

 

121,874

 

Cost of cryptocurrencies sold or distributed

 

 

(119,675

)

 

 

—

 

 

 

(119,675

)

Impairment of cryptocurrencies

 

 

(2,040

)

 

 

—

 

 

 

(2,040

)

Balance—June 30, 2024

 

$

599

 

 

$

1

 

 

$

600

 

 

 

BTC

 

 

ETH

 

 

LTC

 

 

Total

 

Beginning balance—January 1, 2023

 

$

523

 

 

$

9

 

 

$

8

 

 

$

540

 

Purchase or receipts of cryptocurrency

 

 

127,530

 

 

 

4

 

 

 

3

 

 

 

127,537

 

Cost of cryptocurrencies sold or distributed

 

 

(125,465

)

 

 

(12

)

 

 

(11

)

 

 

(125,488

)

Impairment of cryptocurrencies

 

 

(2,187

)

 

 

—

 

 

 

—

 

 

 

(2,187

)

Balance—March 31, 2023

 

$

401

 

 

$

1

 

 

$

—

 

 

$

402

 

Purchase or receipts of cryptocurrency

 

 

153,351

 

 

 

—

 

 

 

—

 

 

 

153,351

 

Cost of cryptocurrencies sold or distributed

 

 

(150,552

)

 

 

—

 

 

 

—

 

 

 

(150,552

)

Impairment of cryptocurrencies

 

 

(2,390

)

 

 

—

 

 

 

—

 

 

 

(2,390

)

Balance—June 30, 2023

 

$

810

 

 

$

1

 

 

$

—

 

 

$

811

 

 

 

Purchases or receipts of cryptocurrency consists of: (a) cash paid by the Company to purchase cryptocurrencies on various exchanges and from liquidity providers and related transaction costs to acquire the cryptocurrencies, (b) receipts of cryptocurrency sold to the Company by customers at the BTM kiosks, and (c) receipts of cryptocurrency received by the Company as consideration for company website and software services revenue. Costs of cryptocurrencies sold or distributed represents the adjusted cost basis of cryptocurrencies sold to customers or payments made in cryptocurrencies, recorded through the date of disposition.

 

As of June 30, 2024 and December 31, 2023, the Company had $6.2 million and $5.1 million due to liquidity providers related to Bitcoin purchased during the period. These amounts are paid in cash, generally within one week from which the expenses are incurred and are presented within “Accrued expenses and other current liabilities” on the Consolidated Balance Sheet.