SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Revenue and Gross Profit by Reporting Segment


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Hosting Segment
Revenue:
Hosting revenue	$	29,830	$	38,936	$	52,459	$	72,150
Equipment sales	—		15,194		—		41,499
Total revenue	29,830		54,130		52,459		113,649
Cost of revenue:
Cost of hosting services	23,107		43,644		39,305		74,875
Cost of equipment sales	—		13,541		—		36,076
Total cost of revenue	23,107		57,185		39,305		110,951
Gross profit (loss)	$	6,723	$	(3,055)	$	13,154	$	2,698
Mining Segment
Revenue:
Digital asset mining income	$	97,082	$	109,842	$	195,108	$	242,842
Total revenue	97,082		109,842		195,108		242,842
Cost of revenue:
Cost of digital asset mining	66,846		94,070		139,522		162,820
Total cost of revenue	66,846		94,070		139,522		162,820
Gross profit	$	30,236	$	15,772	$	55,586	$	80,022
Consolidated
Consolidated total revenue	$	126,912	$	163,972	$	247,567	$	356,491
Consolidated cost of revenue	$	89,953	$	151,255	$	178,827	$	273,771
Consolidated gross profit	$	36,959	$	12,717	$	68,740	$	82,720

Schedules of Customer Concentration Risk


	Three Months Ended June 30,			Three Months Ended June 30,
	2023		2022	2023		2022
	Percent of total revenue:			Percent of Hosting segment revenue:
Customer

D	11	%	N/A	49	%	N/A


	Six Months Ended June 30,			Six Months Ended June 30,
	2023		2022	2023		2022
	Percent of total revenue:			Percent of Hosting segment revenue:
Customer

D	10	%	N/A	49	%	N/A

Reconciliation of Reportable Segment Gross Profit to Loss Before Income Taxes

A reconciliation of the reportable segment gross profit to loss before income taxes included in the Company’s Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022, is as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Reportable segment gross profit	$	36,959	$	12,717	$	68,740	$	82,720
Loss on legal settlement	(85)		—		(85)		—
Gain from sales of digital assets	931		11,808		1,995		13,971
Impairment of digital assets	(1,127)		(150,213)		(2,183)		(204,198)
Impairment of goodwill and other intangibles	—		(790,753)		—		(790,753)

Losses on exchange or disposal of property, plant and equipment	(174)		(13,057)		(174)		(13,057)
Operating expenses:
Research and development	1,640		14,773		3,055		18,113
Sales and marketing	1,084		10,238		2,092		11,636
General and administrative	24,396		90,874		46,160		131,034
Total operating expenses	27,120		115,885		51,307		160,783
Operating income (loss)	9,384		(1,045,383)		16,986		(1,072,100)
Non-operating expenses (income), net:
Gain on debt extinguishment	—		—		(20,761)		—
Interest (income) expense, net	(36)		27,116		121		48,792
Fair value adjustment on convertible notes	—		(195,061)		—		190,976
Fair value adjustment on derivative warrant liabilities	—		(22,189)		—		(32,464)
Reorganization items, net	18,370		—		49,929		—
Other non-operating expenses (income), net	181		3,876		(2,888)		3,519
Total non-operating expenses (income), net	18,515		(186,258)		26,401		210,823
Loss before income taxes	$	(9,131)	$	(859,125)	$	(9,415)	$	(1,282,923)