SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Revenue and Gross Profit by Reporting Segment

The following table presents revenue and gross profit by reportable segment for the periods presented (in thousands):


	Three Months Ended March 31,
	2024			2023
Mining Segment	(in thousands, except percentages)
Digital asset mining revenue	$	149,959		$	98,026
Cost of digital asset mining	81,564			72,676
Mining gross profit	$	68,395		$	25,350
Mining gross margin	46		%	26		%

Hosting Segment
Hosting revenue	$	29,332		$	22,629
Cost of hosting services	20,081			16,198
Hosting gross profit	$	9,251		$	6,431
Hosting gross margin	32		%	28		%

Consolidated
	$	179,291		$	120,655
Consolidated cost of revenue	$	101,645		$	88,874
Consolidated gross profit	$	77,646		$	31,781
Consolidated gross margin	43		%	26		%

Schedules of Customer Concentration Risk

For the three months ended March 31, 2024 and 2023, the concentration of customers comprising 10% or more of the Company’s Mining and Hosting segment revenue were as follows:


	Three Months Ended March 31,				Three Months Ended March 31,
	2024		2023		2024		2023
	Percent of Mining segment revenue:				Percent of Hosting segment revenue:
Customer
G	100	%	100	%	N/A		N/A
F	N/A		N/A		52	%	N/A
H	N/A		N/A		25	%	N/A
I	N/A		N/A		10	%	N/A

Schedules of 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 months ended March 31, 2024 and 2023, is as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Reportable segment gross profit	$	77,646	$	31,781

Gain from sales of digital assets	543		1,064
Impairment of digital assets	—		(1,056)


Change in fair value of energy derivatives	(2,218)		—
Losses on disposal of property, plant and equipment	(3,820)		—
Operating expenses:
Research and development	1,799		1,415
Sales and marketing	982		1,008
General and administrative	14,143		21,764
Total operating expenses	16,924		24,187
Operating income	55,227		7,602
Non-operating (income) expenses, net:
Loss (gain) on debt extinguishment	50		(20,761)
Interest expense, net	14,087		157


Reorganization items, net	(111,439)		31,559
Change in fair value of warrant and contingent value rights	(60,114)		—
Other non-operating expense (income), net	1,746		(3,069)
Total non-operating (income) expenses, net	(155,670)		7,886
Income (loss) before income taxes	$	210,897	$	(284)