Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022			2021			2020
U.S.	$	(1,362,230	)	$	(854,610	)	$	(53,250	)
Foreign		39,765			43,221			33,297
Total	$	(1,322,465	)	$	(811,389	)	$	(19,953	)

Schedule of Provision for (Benefit from) Income Taxes

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

	Years Ended December 31,
	2022		2021			2020
Current:
Federal	$	9,278	$	(4,622	)	$	1,861
State		5,362		2,184			1,445
Foreign		8,139		5,533			5,221
	$	22,779	$	3,095		$	8,527

Deferred:
Federal	$	89,581	$	(204,784	)	$	(15,038	)
State		34,521		(74,796	)		(6,269	)
Foreign		451		576			351
	$	124,553	$	(279,004	)	$	(20,956	)
Total provision (benefit)	$	147,332	$	(275,909	)	$	(12,429	)

Schedule of Effective Income Tax Rate Reconciliation

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

	Years Ended December 31,
	2022			2021			2020
Income tax expense at federal statutory rate		21.0	%		21.0	%		21.0	%
State taxes, net of federal tax effect		7.3	%		9.1	%		18.0	%
Foreign earnings taxed at different rates		0.1	%		0.4	%		21.7	%
Withholding tax		(0.1	)%		(0.1	)%		(12.5	)%
Other international components		0.0	%		(0.2	)%		0.3	%
Change in valuation allowance		(38.6	)%		0.0	%		2.7	%
Non-deductible officers compensation		(0.3	)%		(1.0	)%		(12.5	)%
Research and development tax credit		0.1	%		0.8	%		19.9	%
Share-based compensation		(0.1	)%		4.0	%		11.8	%
Other permanent differences		(0.5	)%		0.0	%		(8.1	)%
Total		(11.1	)%		34.0	%		62.3	%

Schedule of Effective Tax Rate for (Loss) Income Before Income Taxes

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

	Years Ended December 31,
	2022			2021			2020
U.S.		(10.2	)%		33.0	%		33.8	%
Foreign		21.6	%		14.1	%		16.7	%
Combined		(11.1	)%		34.0	%		62.3	%

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,
	2022			2021
Deferred tax assets, net:
Net operating loss carryforwards	$	723		$	968
Tax credits		1,677			3,844
Intangible assets, including capitalized R&D		41,082			20,963
Deferred revenue		24,747			13,954
Accrued compensation		6,602			6,290
Share-based compensation expense		23,305			15,493
Digital asset impairment losses		607,659			258,458
Disallowed interest		1,239			5,532
Other		721			1,889
Deferred tax assets before valuation allowance		707,755			327,391
Valuation allowance		(511,412	)		(999	)
Deferred tax assets, net of valuation allowance		196,343			326,392

Deferred tax liabilities:
Prepaid expenses and other		4,372			2,101
Property and equipment		1,786			2,936
Deferred tax on undistributed foreign earnings		2,231			1,682
Total deferred tax liabilities		8,389			6,719
Total net deferred tax asset	$	187,954		$	319,673

Reported as:
Non-current deferred tax assets, net		188,152			319,782
Non-current deferred tax liabilities		(198	)		(109	)
Total net deferred tax asset	$	187,954		$	319,673

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:

	2022			2021			2020
Unrecognized income tax benefits at beginning of year	$	5,960		$	4,293		$	1,563
(Decrease) increase related to positions taken in prior period		(67	)		1,082			2,580
Increase related to positions taken in current period		318			1,146			283
Decrease related to settlement with tax authorities		(40	)		0			0
Decrease related to expiration of statute of limitations		(360	)		(561	)		(133	)
Unrecognized income tax benefits at end of year		5,811			5,960			4,293
Accrued interest		276			272			295
Gross unrecognized income tax benefits at end of year	$	6,087		$	6,232		$	4,588