SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 31, 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):

	Year Ended December 31,
	2024			2023			2022
Digital Asset Self-Mining Segment	(in thousands, except percentages)
Digital asset self-mining revenue	$	408,740		$	390,333		$	397,796
Cost of digital asset self-mining:
Power fees	160,833			165,848			144,117
Depreciation expense	108,499			88,628			212,944
Employee compensation	26,129			16,853			23,574
Facility operations expense	13,274			14,055			9,554
Other segment items	5,600			6,312			4,893
Total cost of digital asset self-mining	314,335			291,696			$	395,082
Digital Asset Self-Mining gross profit	$	94,405		$	98,637		$	2,714
Digital Asset Self-Mining gross margin	23		%	25		%	1		%
Digital Asset Hosted Mining Segment
Digital asset hosted mining revenue from customers	$	77,554		$	112,067		$	242,517
Cost of digital asset hosted mining services:
Power fees	35,408			62,366			125,859
Depreciation expense	3,604			6,806			10,630
Employee compensation	4,933			6,337			20,587
Facility operations expense	2,765			5,285			8,344
Other segment items	6,848			6,451			71,411
Total cost of digital asset hosted mining services	53,558			87,245			$	236,831
Digital Asset Hosted Mining gross profit	$	23,996		$	24,822		$	5,686
Digital Asset Hosted Mining gross margin	31		%	22		%	2		%
HPC Hosting Segment
HPC hosting revenue:
License fees	$	17,498		$	—		$	—
Maintenance and other	73			—			—
Licensing revenue	17,571			—			—
Power fees passed through to customer	6,807			—			—
Total HPC hosting revenue	24,378			—			—
Cost of HPC hosting services:
Depreciation expense	3			—			—
Employee compensation	2,514			—			—
Facility operations expense	11,907			—			—
Other segment items	478			—			—
Cost of licensing revenue	14,902			—			—
Power fees passed through to customer	6,807			—			—
Total cost of HPC hosting services	21,709			—			—
HPC Hosting gross profit	$	2,669		$	—		$	—
HPC Hosting licensing gross margin	15		%	—		%	—		%
HPC Hosting gross margin	11		%	—		%	—		%
Consolidated
Consolidated total revenue	$	510,672		$	502,400		$	640,313
Consolidated cost of revenue	$	389,602		$	378,941		$	631,913
Consolidated gross profit	$	121,070		$	123,459		$	8,400
Consolidated gross margin	24		%	25		%	1		%

Schedules of Customer Concentration Risk

For the years ended December 31, 2024, 2023 and 2022, 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:

Year Ended December 31,

Year Ended December 31,

Year Ended December 31,

2024

2023

2022

2024

2023

2022

2024

2023

2022

Percent of Digital Asset Self-Mining segment revenue:

Percent of Digital Asset Hosted Mining segment revenue:

Percent of HPC Hosting segment revenue:

Customer

E (related party)

N/A

N/A

N/A

N/A

N/A

38

%

N/A

N/A

N/A

F1

N/A

N/A

N/A

61

%

49

%

N/A

N/A

N/A

N/A

G

100

%

100

%

100

%

N/A

N/A

N/A

N/A

N/A

N/A

H

N/A

N/A

N/A

21

%

15

%

N/A

N/A

N/A

N/A

J

N/A

N/A

N/A

N/A

N/A

N/A

100

%

N/A

N/A

1 On the Effective Date, Customer F became a minority shareholder of the Company.

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 years ended December 31, 2024, 2023 and 2022, is as follows (in thousands):

	Year Ended December 31,
	2024		2023		2022
Reportable segment gross profit	$	121,070	$	123,459	$	8,400
Change in fair value of digital assets	(1,052)		—		—
Gain from sale of digital assets	—		3,893		44,298
Impairment of digital assets	—		(4,406)		(231,315)
Change in fair value of energy derivatives	(2,757)		(3,918)		—
Impairment of goodwill and other intangibles	—		—		(1,059,265)
Impairment of property, plant and equipment	—		—		(590,673)
Losses on exchange or disposal of property, plant and equipment	(4,210)		(1,956)		(28,025)
Operating expenses:
Research and development	11,830		7,184		26,962
Sales and marketing	9,969		7,019		12,731
General and administrative	110,448		93,908		213,280
Total operating expenses	132,247		108,111		252,973
Operating (loss) income	(19,196)		8,961		(2,109,553)
Non-operating expenses (income), net:
Loss (gain) on debt extinguishment	487		(20,065)		287
Interest expense, net	37,070		86,238		96,826
Fair value adjustment on convertible notes	—		—		186,853
Fair value adjustment on derivative warrant liabilities	—		—		(37,937)
Reorganization items, net	(111,439)		191,122		(197,405)
Change in fair value of warrants and contingent value rights	1,369,157		—		—
Other non-operating (income) expense, net	(325)		(2,530)		5,232
Total non-operating expenses, net	1,294,950		254,765		53,856
Loss before income taxes	$	(1,314,146)	$	(245,804)	$	(2,163,409)