Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of (Loss) Income Before Income Taxes

U.S. and international components of (loss) income before income taxes (in thousands) were comprised of the following for the periods indicated:

	Years Ended December 31,
	2023			2022			2021
U.S.	$	(157,810	)	$	(1,362,230	)	$	(854,610	)
Foreign		33,285			39,765			43,221
Total	$	(124,525	)	$	(1,322,465	)	$	(811,389	)

Schedule of (Benefit from) Provision for Income Taxes

The (benefit from) provision for income taxes (in thousands) consisted of the following for the periods indicated:

	Years Ended December 31,
	2023			2022		2021
Current:
Federal	$	2,774		$	9,278	$	(4,622	)
State		3,376			5,362		2,184
Foreign		9,146			8,139		5,533
	$	15,296		$	22,779	$	3,095
Deferred:
Federal	$	(374,800	)	$	89,581	$	(204,784	)
State		(194,374	)		34,521		(74,796	)
Foreign		232			451		576
	$	(568,942	)	$	124,553	$	(279,004	)
Total (benefit) provision	$	(553,646	)	$	147,332	$	(275,909	)

Schedule of Effective Income Tax Rate Reconciliation

The benefit from or provision for income taxes differs from the amount computed by applying the federal statutory income tax rate to the Company’s loss before income taxes as follows for the periods indicated:

	Years Ended December 31,
	2023			2022			2021
Income tax expense at federal statutory rate		21.0	%		21.0	%		21.0	%
State taxes, net of federal tax effect		8.4	%		7.3	%		9.1	%
Other international components		(3.4	)%		(0.1	)%		0.2	%
Change in valuation allowance		409.5	%		(38.6	)%		0.0	%
Non-deductible officers compensation		(5.5	)%		(0.3	)%		(1.0	)%
Research and development tax credit		2.7	%		0.1	%		0.8	%
Share-based compensation		3.4	%		(0.1	)%		4.0	%
Rate changes, including states		11.0	%		(0.3	)%		0.0	%
Other permanent differences (1)		(2.5	)%		(0.1	)%		(0.1	)%
Effective income tax rate		444.6	%		-11.1	%		34.0	%

(1) Included in the “Other permanent differences” category in the table above are other permanent items, each below the threshold required for separate presentation in the table.

Schedule of Effective Tax Rate for Loss Before Income Taxes

The Company’s U.S. and foreign effective tax rates for loss before income taxes were as follows for the periods indicated:

	Years Ended December 31,
	2023			2022			2021
U.S.		356.8	%		(10.2	)%		33.0	%
Foreign		28.2	%		21.6	%		14.1	%
Combined		444.6	%		(11.1	)%		34.0	%

Schedule of Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities (in thousands) were as follows for the periods indicated:

	December 31,
	2023			2022
Deferred tax assets, net:
Net operating loss carryforwards	$	727		$	723
Tax credit carryforwards		1,841			1,677
Intangible assets, including capitalized R&D		57,410			41,082
Deferred revenue		1,481			24,747
Accrued compensation		5,882			6,602
Share-based compensation expense		30,345			23,305
Digital asset impairment losses		652,280			607,659
Interest expense carryforward		11,627			1,239
Lease liability		18,197			14,861
Other		4,699			1,887
Deferred tax assets before valuation allowance		784,489			723,782
Valuation allowance		(1,427	)		(511,412	)
Deferred tax assets, net of valuation allowance		783,062			212,370
Deferred tax liabilities:
Prepaid expenses and other		3,681			4,372
Property and equipment		1,062			1,786
Deferred tax on undistributed foreign earnings		2,923			2,231
Right of use asset		18,180			16,027
Total deferred tax liabilities		25,846			24,416
Total net deferred tax asset	$	757,216		$	187,954
Reported as:
Non-current deferred tax assets, net		757,573			188,152
Non-current deferred tax liabilities		(357	)		(198	)
Total net deferred tax asset	$	757,216		$	187,954

Schedule of Change In Unrecognized Tax Benefits

The change in unrecognized income tax benefits (in thousands) is presented in the table below for the periods indicated:

	2023			2022			2021
Unrecognized income tax benefits at beginning of year	$	5,811		$	5,960		$	4,293
Increase (decrease) related to positions taken in prior period		1,458			(67	)		1,082
Increase related to positions taken in current period		930			318			1,146
Decrease related to settlement with tax authorities		0			(40	)		0
Decrease related to expiration of statute of limitations		(301	)		(360	)		(561	)
Unrecognized income tax benefits at end of year		7,898			5,811			5,960
Accrued interest		352			276			272
Gross unrecognized income tax benefits at end of year	$	8,250		$	6,087		$	6,232