SEGMENT REPORTING (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

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 September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Digital Asset Self-Mining Segment	(in thousands, except percentages)
Digital asset self-mining revenue	$	68,138		$	83,056		$	328,840		$	278,164
Cost of digital asset self-mining	74,555			72,603			236,120			212,125
Digital Asset Self-Mining gross (loss) profit	$	(6,417)		$	10,453		$	92,720		$	66,039
Digital Asset Self-Mining gross margin	(9)		%	13		%	28		%	24		%
Digital Asset Hosted Mining Segment
Digital asset hosted mining revenue from customers	$	16,878		$	29,848		$	71,050		$	82,307
Cost of digital asset hosted mining services	11,914			24,882			49,388			64,187
Digital Asset Hosted Mining gross profit	$	4,964		$	4,966		$	21,662		$	18,120
Digital Asset Hosted Mining gross margin	29		%	17		%	30		%	22		%
HPC Hosting Segment
HPC hosting revenue	$	10,338		$	—		$	15,857		$	—
Cost of HPC hosting services	9,041			—			13,932			—
HPC Hosting gross profit	$	1,297		$	—		$	1,925		$	—
HPC Hosting gross margin	13		%	—		%	12		%	—		%
Consolidated
Consolidated total revenue	$	95,354		$	112,904		$	415,747		$	360,471
Consolidated cost of revenue	$	95,510		$	97,485		$	299,440		$	276,312
Consolidated gross (loss) profit	$	(156)		$	15,419		$	116,307		$	84,159
Consolidated gross margin	—		%	14		%	28		%	23		%

Schedules of Customer Concentration Risk

For the three and nine months ended September 30, 2024 and 2023, the concentration of customers comprising 10% or more of the Company’s Digital Asset Self-Mining, Digital Asset Hosted Mining, and HPC Hosting segment revenue were as follows:

	Three Months Ended September 30,				Three Months Ended September 30,				Three Months Ended September 30,
	2024		2023		2024		2023		2024		2023
	Percent of Digital Asset Self-Mining segment revenue:				Percent of Digital Asset Hosted Mining segment revenue:				Percent of HPC Hosting segment revenue:
Customer
G	100	%	100	%	N/A		N/A		N/A		N/A
F	N/A		N/A		73	%	45	%	N/A		N/A
H	N/A		N/A		19	%	19	%	N/A		N/A
I	N/A		N/A		N/A		12	%	N/A		N/A
J	N/A		N/A		N/A		N/A		100	%	N/A

	Nine Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023		2024		2023
	Percent of Digital Asset Self-Mining segment revenue:				Percent of Digital Asset Hosted Mining segment revenue:				Percent of HPC Hosting segment revenue:
Customer
G	100	%	100	%	N/A		N/A		N/A		N/A
F	N/A		N/A		59	%	48	%	N/A		N/A
H	N/A		N/A		23	%	12	%	N/A		N/A
E (related party)**	N/A		N/A		N/A		12	%	N/A		N/A
J	N/A		N/A		N/A		N/A		100	%	N/A

Schedules of Reconciliation of Reportable Segment Gross Profit to Loss Before Income Taxes

A reconciliation of the reportable segment gross (loss) profit to loss before income taxes included in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023, is as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Reportable segment gross (loss) profit	$	(156)	$	15,419	$	116,307	$	84,159
Change in fair value of digital assets	(206)		—		(247)		—
Gain from sale of digital assets	—		363		—		2,358
Impairment of digital assets	—		(681)		—		(2,864)
Change in fair value of energy derivatives	—		—		(2,757)		—
Loss on disposal of property, plant and equipment	(509)		(340)		(4,061)		(514)
Operating expenses:
Research and development	2,841		2,253		6,814		5,308
Sales and marketing	3,151		1,041		7,099		3,133
General and administrative	34,356		23,511		74,742		69,671
Total operating expenses	40,348		26,805		88,655		78,112
Operating (loss) income	(41,219)		(12,044)		20,587		5,027
Non-operating (income) expenses, net:
Loss (gain) on debt extinguishment	317		(374)		487		(21,135)
Interest expense, net	7,072		2,196		35,934		2,317
Reorganization items, net	—		28,256		(111,439)		78,270
Change in fair value of warrant and contingent value rights	408,520		—		1,144,441		—
Other non-operating (income) expense, net	(2,003)		(1,090)		144		(3,978)
Total non-operating expenses, net	413,906		28,988		1,069,567		55,474
Loss before income taxes	$	(455,125)	$	(41,032)	$	(1,048,980)	$	(50,447)