SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of Revenue and Gross Profit by Reporting Segment

	Three Months Ended March 31,
	2023		2022
Hosting Segment
Revenue:
Hosting revenue	$	22,629	$	33,214
Equipment sales	—		26,305
Total revenue	$	22,629	$	59,519
Cost of revenue:
Cost of hosting services	$	18,826	$	31,231
Cost of equipment sales	—		22,535
Total cost of revenue	$	18,826	$	53,766
Gross profit	$	3,803	$	5,753
Mining Segment
Revenue:
Digital asset mining income	$	98,026	$	133,000
Total revenue	$	98,026	$	133,000
Cost of revenue:
Cost of digital asset mining	$	81,345	$	68,750
Total cost of revenue	81,345		68,750
Gross profit	$	16,681	$	64,250
Consolidated
Consolidated total revenue	$	120,655	$	192,519
Consolidated cost of revenue	$	100,171	$	122,516
Consolidated gross profit	$	20,484	$	70,003

Schedules of Customer Concentration Risk

	Three Months Ended March 31,			Three Months Ended March 31,
	2023	2022		2023	2022
	Percent of total revenue:			Percent of Hosting segment revenue:
Customer
A (related party)	N/A	12	%	N/A	39	%
D	N/A	N/A		N/A	N/A
E	N/A	N/A		N/A	N/A

Reconciliation of Reportable Segment Gross Profit to Loss Before Income Taxes

A reconciliation of the reportable segment gross profit to income (loss) before income taxes included in the Company’s Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2023 and 2022, is as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Reportable segment gross profit	$	20,484	$	70,003
Gain from sales of digital assets	1,064		2,163
Impairment of digital assets	(1,056)		(53,985)
Operating expenses:
Research and development	1,415		3,340
Sales and marketing	1,008		1,398
General and administrative	21,764		40,160
Total operating expenses	24,187		44,898
Operating loss	(3,695)		(26,717)
Non-operating expenses, net:
Gain on debt extinguishment	(20,761)		—
Interest expense, net	157		21,676
Fair value adjustment on convertible notes	—		386,037
Fair value adjustment on derivative warrant liabilities	—		(10,275)
Reorganization items, net	31,559		—
Other non-operating income, net	(3,069)		(357)
Total non-operating expenses, net	7,886		397,081
Loss before income taxes	$	(11,581)	$	(423,798)