NOTES PAYABLE (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of Notes Payable

Notes payable as of September 30, 2022 and December 31, 2021 consist of the following (in thousands):

	September 30 2022		December 31 2021
Kentucky note	$	657	$	1,032
Genesis loan	—		552
NYDIG loan	38,781		67,435
Stockholder loan	10,000		10,000
Trinity loan	24,067		19,641
Bremer loan	19,232		15,066
Blockfi loan	53,913		60,000
Anchor Labs loan	26,500		—
Mass Mutual Barings loans	63,845		—
B. Riley Bridge Notes	52,125		—
Liberty loan	7,401		—
Secured Convertible Notes1	230,931		220,871
Other Convertible Notes2	313,381		301,226
Other	1,866		663
Total	842,699		696,486
Unamortized discount and debt issuance costs	(3,618)		(3,187)
Fair value adjustment on convertible notes	138,519		34,910
Total notes payable, net	$	977,600	$	728,209

1 Secured Convertible Notes (includes principal balance at issuance and PIK interest) which considers the minimum payoff at maturity of two times the face value of the note plus accrued interest. The minimum payoff at maturity related to the principal balance was $461.9 million on September 30, 2022. The minimum payoff at maturity related to the principal balance was $441.7 million on December 31, 2021.

2 Other Convertible Notes which considers the minimum payoff at maturity of one times the face value of the note plus accrued interest.

Schedule of Fair Value Adjustments and Debt Issuance Costs

The following summarizes the fair value adjustments and debt issuance costs recognized on the convertible notes (in thousands):

	Financial statement line item	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
Cash interest payments	Interest expense, net	$	5,488	$	16,070
Payment-in-kind (PIK) interest	Interest expense, net	8,232		24,115
Instrument-specific credit risk	Other comprehensive income, net of income taxes	(47,832)		(83,578)
Other fair value adjustments	Fair value adjustment on convertible notes	(4,123)		186,853
Total fair value adjustments		$	(38,235)	$	143,460

	Financial statement line item	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
Cash interest payments	Interest expense, net	$	3,130	$	4,850
Payment-in-kind (PIK) interest	Interest expense, net	4,694		7,274
Instrument-specific credit risk	Other comprehensive loss, net of income taxes	8,552		8,552
Other fair value adjustments	Fair value adjustment on convertible notes	8,663		8,663
Total fair value adjustments		$	25,039	$	29,339
Debt issuance costs	Interest expense, net	$	5,083	$	10,664