NOTES PAYABLE (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Notes Payable

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

	December 31 2022		December 31 2021
Kentucky note	$	529	$	1,032
Genesis loan	—		552
NYDIG loan	38,573		67,435
Stockholder loan	10,000		10,000
Trinity loan	23,356		19,641
Bremer	18,331		15,066
Blockfi	53,913		60,000
Anchor Labs loan	25,159		—
Mass Mutual Barings loans	63,844		—
B. Riley Bridge loans	41,777		—
Liberty loan	6,968		—
Secured Convertible Notes1	237,584		220,871
Other Convertible Notes2	322,396		301,226
Original DIP Credit Agreement3	35,547
Other	2,960		663
Notes payable, prior to reclassification to Liabilities subject to compromise	880,937		696,486
Less: Notes payable in Liabilities subject to compromise4	844,695		—
Unamortized discount and debt issuance costs5	(36,456)		(3,187)
Fair value adjustments to convertible notes6	(808,148)		34,910
Total notes payable, net	$	36,242	$	728,209

1 Secured Convertible Notes includes principal balance at issuance and PIK interest.

2 Other Convertible Notes includes principal balance at issuance and PIK interest.

3 Original DIP Credit Agreement, see Note 3 - Chapter 11 Filing and Other Related Matters for further information.

4 In connection with the Company's Chapter 11 Cases, $844.7 million of outstanding notes payable have been reclassified to Liabilities subject to compromise in the

Company's consolidated balance sheets as of December 31, 2022 at their expected allowed amount. Up to the Petition Date, the Company continued to accrue interest expense in relation to these reclassified debt instruments. At December 31, 2022 $12.6 million of accrued interest was classified as liabilities subject to compromise.

5 As a result of the Company's Chapter 11 Cases, the Company expensed $3.5 million of unamortized discount and debt issuance costs, net recorded in Reorganization items, net in the year ended December 31, 2022.

6 As a result of the Company's Chapter 11 Cases, the Company recognized a gain of $202.9 million from the derecognition of accumulated fair value adjustments recorded in Reorganization items, net in the year ended December 31, 2022.

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):

		Year Ended December 31,
	Financial statement line item	2022		2021
Cash interest payments	Interest expense, net	$	21,581	$	10,114
Payment-in-kind (PIK) interest	Interest expense, net	31,550		15,170
Instrument-specific credit risk	Other comprehensive income, net of income taxes	(83,579)		10,966
Other fair value adjustments	Fair value adjustment on convertible notes	(103,274)		16,047
Reclass to Reorganization items, net	Reorganization items, net	202,900		—
Total fair value adjustments		$	69,178	$	52,297
Debt issuance costs	Reorganization items, net	$	2,788	$	12,831