Revenue-side 842
Customer money booked as operating-lease rent. Public sample: BRUN core, DGXX GPU line. Asset stays on the lessor’s books.
F.F Research · AI · 28 August 2026
The public U.S. sample of ASC 842 lessor operating leases on company-owned, identified GPUs is two names: Boost Run and Digi Power X.
Thesis · Public sample
The split is not Kubernetes on the product page. It is whether the contract hands control of an identified asset. APLD / WULF 842 is halls and power. WhiteFiber 842 is the opposite direction: lessee GPUs sold as 606 cloud.
Article architecture
Two gates. Platform is a common reason, not the definition. How you sell is orthogonal to how you book.
The only listed core 842 GPU lessor. Finance-leased cards, colo halls, take-or-pay TCV waiting on rack-and-stack.
Same accounting on one line. Variable rent, ATM cash, and a $1.1B Cerebras colo that is not NeoCloud.
Chapter 01
The same dedicated GPU contract can enter only one U.S. GAAP framework.
Chapter 1 · 1.1 Ranking
Sorted by GPU / cloud product-layer share, not by 842 purity. BTDR is IFRS 15. WYFI GPU servers are a lessee cost.
Chapter 1 · 1.1 Direction
Customer money booked as operating-lease rent. Public sample: BRUN core, DGXX GPU line. Asset stays on the lessor’s books.
Halls, power, even GPUs leased in. WhiteFiber leases GPUs to sell 606 cloud. APLD / WULF lease out cabinets and power; the tenant brings chips.
Chapter 1 · 1.2 Legal test
Specific GPUs / servers. No substantive substitution.
Customer directs workload, login, OS, utilization.
Fail either gate → 606 service.
Chapter 1 · 1.2 Critical audit matter
Deloitte marked certain CoreWeave customer contracts as a Critical Audit Matter: cloud service (606) or lease of cloud equipment (842). The company kept substitution and direction. The opinion on the statements is unqualified.
Nebius’s 20-F marks the same question. The second CAM layer is variable consideration and whether a reclassification slides into sales-type — GPU life 3–5 years, CRWV weighted term about 5 years.
Chapter 1 · 1.3 Definition
Chapter 1 · 1.3 ChronoScale
Dedicated clusters, company keeps which machines. Take-or-pay committed. All 606. CAM.
All ~6,144 H100s to Together AI. Unit price can change. 12 months, then 60-day rolling. Not take-or-pay. 606.
Specifically identified servers. Exclusive control. Non-cancellable GPU lease. Core 842.
Giving a whole cluster to one customer only says the product is dedicated. It does not imply a lease, and it does not imply take-or-pay.
Chapter 1 · 1.3 Software
Chapter 1 · 1.4 Orthogonal
CRWV committed. Capacity SLA. Company keeps swap.
BRUN core. Non-cancellable rent. Identified servers.
CHRN. Unit price can change. Short cancellable term.
DGXX GPU line. All variable. No material fixed minimum.
Chapter 1 · 1.4 Visibility
| Ruler | Who requires it | What enters | Example |
|---|---|---|---|
| RPO | 606 mandatory | Unsatisfied PO after constraint | CRWV Q2 ~$103.7B |
| Backlog | Nobody | RPO + undelivered commitments | CRWV Q2 $104.2B |
| TCV | Nobody | Signed face value, even unpowered | BRUN $1.9B · ~$0.4B live |
| Lease payments | 842 footnote | Future fixed rent only | DGXX GPU footnote almost empty |
ARR is a flow. These four are stocks. BRUN mid-year ARR $145M is not TCV. EV / RPO cannot be pasted onto TCV.
Chapter 1 · 1.4 Choice
Keep swap, dispatch, refresh. Combine compute, support, software into one PO. Mandatory RPO. Classification is watched; sales-type is a left tail.
Legal story matches identified machines. Fixed-rent receipts table is harder than TCV. Substitution is given away. Software dominance can move the whole book to 606.
Chapter 02
The cleanest listed bare-metal 842 GPU lessor. Halls and cards do not start on the same day.
Chapter 2 · 2.1 Purity
H1 blockchain about 2.5%. IaC and vCluster exist; Kubernetes is not a separate revenue line. Exclusive control of specifically identified GPU servers.
Chapter 2 · 2.2–2.3 Lineage
13 DCs · 7 countries · HFT credit
Karos self-funded LLC
Five-year purchase + DFS
Nasdaq listing
Controlled company · ~90% vote
Chapter 2 · 2.4–2.5 Sandwich
An operating-lease lessor does not create a lessor ROU. USD 122M is colo, not GPU income. Power and excess usage are variable and stay off ROU.
Chapter 2 · 2.4 Fleet on the books
H1 34 new finance leases, undiscounted $295.9M. 2027–28 about $100M a year of repayments. Dell 1.44B essentially fully allocated; 4–5B more in talks.
Chapter 2 · 2.6 TCV
Management path: Q3 $0.8B live → Q4 $1.2B → 2027 Q1 $1.9B fully live. Deck path, not a 10-Q commitment. Average term ~3 years, average prepay ~22%.
Chapter 2 · 2.6 Contracts
5,000 B300 · 36 months · pay all fees regardless of usage. MSA filed. $3.59 / GPU-hour. Customer A $208M starts Nov-26; Customer B $223M starts Mar-27.
Two years, pre-listing. Release writes inference as usage-based. No MSA exhibit. Cloud-platform wholesale, not a lab using the cluster itself.
Announced Q2 names sum to $679M, or $902M with subsequent-event Customer B. Management said “over a billion.” That increment is TCV, not an 8-K roll-up.
Chapter 2 · 2.7 Presentation
Add Q2 colo $10.6M back to CoR and BRUN is ~40% of revenue, near CRWV 34%. Add GPU D&A and operations already lose. OCF $114M is customer deposits, not profit. Tax $55.7M is C-corp deferred, not cash.
Chapter 2 · 2.8 Bottleneck
Two more 7-year halls, undiscounted $42.8M + $184.0M, target Q3 commencement — numerator steps up again. Demand is not the constraint. Rack-and-stack is.
Chapter 03
Similar accounting on one line. Different firm: miner conversion, ATM cash, and a colo mega-contract.
Chapter 3 · 3.1 Mix
H1 GPU / total 7.4%. Tier III AI segment “has not yet begun commercial operations” — Cerebras hall still under construction. Booked GPU rent already sits in that column.
Chapter 3 · 3.2 SubQ
SubQ only booked customer. 24 months, expected TCV $19.6M, 15% prepaid. Consideration all usage-based. 842 footnote almost empty. Cash-bought PPE $48.3M. ~0.6 MW.
Fixed non-cancellable rent. Remaining-lease-payments table. Finance-leased fleet. Customer deposits $128.4M. Policy: certain contracts are 842 — website on-demand is not yet a 606 line, but watch Q3.
Chapter 3 · 3.3 Cerebras
Tenant brings chips. Phase 1 15 MW target 2026-12-15; Phase 2 +25 MW subject to financing. Isomorphic to WULF / APLD, not to BRUN. Once booked, the group looks more like a small-cap AI colo.
Chapter 3 · 3.4 Cash
YE24 cash $1.70M. Interest-bearing debt near 0. Alabama 40 MW is not $128M of cash. CEO: ATM is a “necessary evil” to qualify for project debt. Other registered offerings add ~$16M besides ATM.
Conclusion
Independent research, not investment advice. Figures from 10-Q / 10-K / 8-K / IR materials. Cutoff: 28 August 2026.